House of Representatives
15 August 1972

27th Parliament · 2nd Session

  1. House of Representatives
  2. 27th Parliament
  3. 1972

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

page 3

DEATH OF HIS ROYAL HIGHNESS THE DUKE OF WINDSOR

Mr SPEAKER:

-I have to inform the House that, in reply to the Address of Condolence from this House on the occasion of the death of the Duke of Windsor, the Private Secretary to Her Majesty the Queen has sent the following message:

I am commanded to acknowledge the receipt ol the Address from both the Senate and the House of Representatives sent on the occasion of the death of the Duke of Windsor and to say that Her Majesty deeply appreciates the expressions of sympathy sent on behalf of the people of the Commonwealth of Australia.

page 3

DEATH OF SIR OWEN DIXON

Mr McMAHON:
Prime Minister · Lowe · LP

– It is with very deep regret that I have to inform the House of the death on 7th July of Sir Owen Dixon, a former Chief Justice of the High Court of Australia, at the age of 86. Sir Owen Dixon was without doubt one of the truly great Australians of his time. His reputation as an outstanding jurist was acknowledged both in Australia and overseas, particularly in Britain and the United States. His contributions extended far beyond the legal field.

He was born at Hawthorn in Victoria on 28th April 1886 and was educated at Hawthorn College and at the University of Melbourne where he took degrees in Arts and Law. He was called to the Victorian Bar in 1910 and in 1922, at the age of 36, became a Kings Counsel. Within the next 2 years he was twice to appear in London before the Privy Council, an unusual event for Australian lawyers in those days, and nearly 3 decades before he himself was to be appointed a member of that Council. In 1926 he became Acting Justice of the Supreme Court of Victoria and in 1929 was appointed a Justice of the High Court. He was Chief Justice of the High Court from 1952 until his retirement in 1964.

When called upon in times of crisis Sir Owen Dixon served with equally great distinction in other spheres. In 1940, at the request of the Menzies Government, he undertook the chairmanship of the Central Wool Committee, which had been set up to administer the wartime handling of the wool clip. During the following 2 years he became Chairman of the Australian Shipping Control Board, the Marine Risks Insurance Board, the Commonwealth

Marine Salvage Board and the Allied Consultative Shipping Council in Australia. In 1942 he was appointed by the Curtin Government as Australian Minister to the United States and remained in that important post until he resumed his seat on the Bench in 1944. In 1950 he was appointed by the United Nations as mediator in the dispute between India and Pakistan over Kashmir. His tireless efforts to bring an end to that unhappy conflict were not to succeed but it was widely recognised that he had done as much as any man could possibly have done in those most difficult circumstances.

In 1963 he was awarded the Order of Merit by Her Majesty the Queen - a rare distinction and one bestowed only on the personal initiative of the Sovereign. He also was a Knight Grand Cross of the Order of St Michael and St George. He held honorary law doctorates from Oxford and Harvard. It is, nonetheless, as an outstanding man of the law that Sir Owen Dixon will be remembered. His immense scholarship, his qualities of mind and his unfailing personal dignity set him out among his fellows wherever he moved. He commanded respect in every field of human endeavour to which his talents were called and he was held in deep affection by all who knew him. Australia has indeed lost a great man. This country is richer for the life of Owen Dixon. We salute his memory and we send our deepest sympathy to his family.

Mr WHITLAM:
Leader of the Opposition · Werriwa

– The Australian Labor Party wishes to be associated with the tribute that the Prime Minister has paid to the former Chief Justice. As counsel, as judge, as wartime administrator, as diplomatist and as Chief Justice, Sir Owen Dixon touched nothing that he did not adorn. Australians must be grateful for his services to his fellow citizens. They must also be proud of his standing among his counterparts in every country where English is spoken and the Common Law observed.

Mr ANTHONY:
Minister for Trade and Industry · Richmond · CP

– I would like to associate the Australian Country Party with the condolences expressed and tributes paid by the Prime Minister and the Leader of the Opposition to the late Sir Owen Dixon; As both gentlemen have said, he was a truly outstanding Australian who won enormous respect both in this country and overseas. He had a long and varied career, reaching its zenith as Chief Justice of Australia. But he was also a great diplomat and as such he was required to show his great knowledge in helping with certain United Nations activities. I note with interest that he was also chairman of a committee that dealt with the handling of the Australian wool clip during the Second World War. This was an enormous undertaking but he carried it out with great skill. He was an outstanding and brilliant Australian and we honour him in this House today.

Mr SPEAKER:

– As a mark of respect to the memory of the deceased I invite honourable members to rise in their places. (Honourable members having risen in their places)

Mr SPEAKER:

– Thank you, gentlemen.

page 4

DEATH OF’ THE HONOURABLE ARTHUR BLAKELEY

Mr McMAHON:
Prime Minister · Lowe · LP

– It is also with regret that I have to inform the House of the death . on 27th June 1972 of the Honourable Arthur Blakeley. Mr Blakeley represented the electorate of Darling in New South Wales for the Australian Labor Party froth 1917 until his defeat at the general election in 1934. From 1929 until the beginning of 1932 he was Minister for Home Affairs in the .Scullin Government. In 1928 and 1929 he was Deputy Leader of the Labor Party in the House of Representatives. Mr Blakeley was born in Gilberton in South Australia in 1886 and was educated at the North Broken Hill convent school. He held several important posts in the Australian Workers Union and was its General President from 1919 to 1923. Following his defeat in the 1934 election he took an appointment as a Commonwealth arbitration inspector, and for the last 10 years before his retirement in 1952 was a Commonwealth conciliation commissioner. We extend our sympathy to his family in their loss.

Mr WHITLAM:
Leader of the Opposition · Werriwa

– The Australian Labor Party thanks the Prime Minister for his tribute to Mr Arthur Blakeley, a former Deputy

Leader of our Party. As legislator, administrator and arbitrator he served the Australian people for many years and with great devotion and distinction. May I be pardoned a personal reminiscence about him. He was the first Federal Minister whom I met. He built his own house in Canberra in 1929 and lived here until he was defeated as a member of Parliament. I went to Telopea Park school with one of his daughters and one of his sons. I have retained my associations with the family. Mr Blakeley, not only by injunction but also by example, helped to make Canberra the beautiful city that it is. He was the first distinguished person who brought to my notice as a school child the fact that it was immoral, and in Canberra illegal, to chop down trees. He helped to make this city a better place in which to live. I believe that members of the Australian Labor Party, members of his old union and members of his old electorate will still remember with admiration and affection his services to them.

Mr ANTHONY:
Minister for Trade and Industry · Richmond · CP

– I would like to associate the Australian Country Party with the remarks of the Prime Minister and the Leader of the Opposition. Unfortunately 1 cannot speak about the Honourable Arthur Blakeley personally; he was before my time. It is sad that it has to be an occasion like this when we are reminded of the services that other people have made to this Parliament. He was a very important person in this House. He was the Deputy Leader of the Australian Labor Party during a very tense period for this nation. He was a member of this House for 17 years and Minister for Home Affairs during the depression years from 1929 to 1932. That portfolio must have been one of the most onerous of any for a Minister to carry during that time. We honour him for the work he did, and on behalf of my Party I extend sympathy to his family.

Mr SPEAKER:

-I inform honourable members that on behalf of the House I have forwarded a message of sympathy to the relatives of the deceased. As a mark of respect to the memory of the deceased I ask honourable members to stand in their places. (Honourable members having stood in their places.)

Mr SPEAKER:

– Thank you, gentlemen.

page 5

PETITIONS

The Clerk:

– Petitions have been lodged for presentation as follows and copies will be referred to the appropriate Ministers:

Overseas Aid

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled, the petition of the undersigned citizens of the Commonwealth humbly showeth:

That the undersigned believe:

That hunger, illiteracy, abject poverty and injustice are intolerable anywhere in the world.

That the knowledge, skills and resources to change these unjust conditions now exist.

That to obtain justice among peoples, world financial and trading systems can and must be changed.

That Australia has the capacity to play a more significant part in enabling the developing countries to achieve improved social conditions for all their people.

Your petitioners most humbly pray that:

Australia’s Official Development Assistance In 1972-73 be increased to at least $240 million.

Australia’s aid policies be reviewed so that aid given provides maximum benefit to the peoples of developing countries.

Australia’s trade policies be reviewed to provide more favourable conditions for developing countries. by Mr Chipp, Sir John Cramer, Mr Grassby, Dr Gun, Mr Keogh, Mr Mclvor, Mr Morrison, Mr Reid and Mr Wallis.

Petitions received.

Censorship

To the Honourable the Speaker and Members of the House assembled:

The humble petition of electors of Hotham respectfully sheweth: Their strongest protest at the flood of indecent literature being circulated and displayed publicly on book stalls, kiosks and shops throughout Melbourne. This type of literature, mainly dealing in photographic reproduction of sexual techniques and love making, is an outrage to our moral sensibilities and can only serve to undermine standards of social responsibility especially in the impressionable minds of our young people.

We also object to the low moral tone of some television programmes and many films (including television commercials advertising these films - particularly those which are in the restricted classification).

Your petitioners therefore humbly pray that the Government immediately takes all necessary action, under existing Acts and Regulations of Government Departments controlling various forms of media, to prohibit importation, production, display or sale of any indecent material, and, where material is of local production and is subject to control by State instrumentalities, we urge the

Government to act in co-operation with such State bodies as may be necessary to remedy this deplorable position.

And your petitioners as in duty bound will ever pray. by Mr Chipp.

Petition received.

Aborigines

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled the petition of the undersigned electors (Aboriginal and non-Aboriginal, Islander and nonIslander) of the Commonwealth of Australia respectfully sheweth:

  1. That the Aboriginal embassy established on the lawns opposite Parliament House, Canberra is less offensive aesthetically, more comfortable and hygienic than conditions under which many Aboriginal people are presently living.
  2. That it has succeeded in pin-pointing Aborigines desire for land rights as recognised to indigenes of most countries of the British Commonwealth and has been recognised by foreign Governments as representative body whose officials have always acted with due dignity and decorum as befits official status.

And we, the undersigned, respectfully request that:

  1. The Ordinance to enable the Government to remove the Aboriginal embassy be immediately withdrawn,
  2. The Federal Government grant Aborigines the land rights they demand,
  3. The Aboriginal embassy be given free and dignified accommodation befitting Ambassadorial Status in a suitable building in Canberra City.

And we protest against the said Ordinance as being undemocratic, and a threat to. the freedom of all Australian citizens.

And your petitioners, as in duty bound, will ever pray. by Mr Hunt

Petition received.

Education

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The Petition of the undersigned citizens Of New South Wales respectfully showeth:

That educational opportunities are provided by the Education Department and are available to children living in closer settled areas and that children living in isolated areas are being denied these educational opportunities due to the following circumstances:

  1. The great distance these children have to travel to towns and cities where these schools are situated and the fact that the maximum travelling allowance is only 67 cents per day.
  2. The parents of these children can no longer pay the many hundreds of dollars each year necessary to board their children in the towns and cities where the schools are situated.

Your Petitioners most humbly pray that the House of Representatives in Parliament assembled will give consideration to:

  1. Granting immediate emergency assistance for children forced to terminate secondary education prematurely (Grades 2-4) this year).
  2. Request the State Governments to give immediate assurances to parents, schools, hostels, of adequate living away allowances beginning 1972. (This to enable isolated children to be enrolled for secondary education.)
  3. Grant the essential finance to the States for S600 L/A per annum allowances for (a) L/A allowances, all children forced to live away to attend school; (b) for supervisor children doing school in the home; (c) isolated parents maintaining another home to gain access to school; (d) there be no means test attached - no discrimination against place of schooling or where children cross state borders to school.
  4. Provision of boarding schools/hostels in remote area towns where applicable; and subsidy of Si for $2 qperating cost of existent hostels. Conveyance allowance of 7.5 cents per mile per vehicle (to . parents conveying children to school or bus).

And your Petitioners as in duty bound will ever pray. by Mr Hunt.

Petition received.

Taxation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The. humble petition of ‘Citizens of the Commonwealth respectfully’ showeth:

That the- Income Tax Assessment ‘ Act be amended to allow as deductions:

The cost of special foods required by diabetics. And your petitioners as in duty bound ‘will ever pray. by Mr Garland.

Petition received.

Public Service

The Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned, citizens pf Australia respectfully showeth: ,

That the Commonwealth Public Service Board policy in reviewing Allowances paid to Officers of the Commonwealth Public Service stationed in remote localities of the Commonwealth, does not embrace fully the ambit of disabilities in these remote localities and in addition, is being reviewed only after lengthy periods of time. ,

Your petitioners most humbly pray that the House of Representatives in Parliament assembled will take immediate steps to:

  1. Have the Commonwealth Public Service Board carry out reviews on .District Allowances payable to officers stationed- in remote localities every two years.
  2. Have tse Comonwealth Public Service Board alter its policy of reviews to a more realistic and TTider ambit, and include in its policy a visit by reviewing Committees to remote localities in every State.

And your petitioners, as in duty bound, will every pray. by Mr Katter. Petition received.

Taxation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The petition of the undersigned respectfully showeth:

There were more than 4,400 ex-nuptial births in 1971.

Only 1,537 ef these children were placed for adoption.

The majority of others went to mother only homes.

These mothers cannot work without placing their children in day minding centres. Private centres charge fees ranging from $11.50 to $18.00 per week.

There are Government Subsidised Day Minding Centres where fees are charged according to the mother’s income; however, the waiting list for entry into such centres is anything from six months and onwards.

In each case these fees are not a tax deductible item thus causing hardships to supporting mothers who wish to raise their children (our future citizens) themselves and who in any case are not paid commensurate wages with their male counterpart.

The result of this situation is that many supporting mothers are forced to remain at home and rely on a Pension thereby acting as a drain on Commonwealth Funds and denying the Commonwealth Income Taxation Revenue. Your petitioners most humbly pray that the House of Representatives in Parliament assembled, should:

Enact amendments to the appropriate legislation so as to afford equality of treatment to single/ supporting mothers by allowing them to claim as taxation deductions the fees they pay to Day Minding Centres. or - Alternatives to Tax Deductible Nursery Fees.

  1. Free child minding centres.
  2. An amendment for provision of Day Care Centres by employers which would be tax deductible, or provision of monetary/concession incentives.

And your petitioners, as in duty bound, will ever pray. by Mr Gorton.

Petition received.

Social Services

To the Honourable the Speaker and Members of the House of ‘Representatives in Parliament assembled. The petition of the undersigned electors of the Commonwealth of Australia respectfully showeth:

That on 10th December 1948, Australia signed the ‘Universal Declaration of Human Rights’, Article 25 Reads: ‘Everyone has the right to security in the event of unemployment, sickness, disability, widowhood, old age and other lack of livelihood in circumstances beyond his control’.

Yet, 23 years later, in our country of great national wealth and abundance it is to the nation’s shame that many thousands of our people live in a state of being inconsistent with the dignity and worth of the human person - languishing in poverty and want, neglect and the lack of proper care necessary, for their health and well-being.

We, the undersigned, respectfully draw to your attention that the conscience of the nation is not at ease while the records of our country show that social services are not comparable with that of other advanced countries administering such services, therefore, we call upon the Commonwealth Government to immediately legislate for:

Base pension rate - 30 per cent of the average weekly male earnings, all states, plus supplementary assistance and allowances based on a percentage of such earnings. Unemployed benefits equal to the foregoing.

Completely free health services to cover all needs of social service pensioners - hospitalisation, chronic and long-term illness, fractures, anaesthetics, specialist, pharmaceutical, hearing aids, dental, optical, physiotherapy, chiropody, surgical aids and any other appliances.

Commonwealth Government to promote a comprehensive national scheme in cooperation with the States and make finance available to provide for the building of public hospitals, nursing and hostel-type homes necessary to effectively meet the special requirements of aged people, in conjunction with a comprehensive domiciliary care programme to enable aged people to stay in their homes.

Mental illness placed in the same position as physical illness.

Substantial Commonwealth increase in the $5 subsidy a day per public bed pensioner patient in general hospitals.

Ten per cent of Commonwealth revenue to local government for general activities which now include social welfare, health, conservation and other community needs. Commonwealth subsidy, for the waiving of rates for pensioners.

Commonwealth Government to increase the non-repayable grant to the States for low rental home units for pensioners.

Royal Commission or other form of public enquiry into Australia’s social welfare structure that Australia may be brought into line with accepted world standards of the most advanced countries. And your petitioners, as in duty bound, will ever pray. by Mr Calwell, Mr Les Johnson and Mr Mclvor.

Petitions received.

Eyre Highway

To the Honourable the Speaker and the Members of the House of Representatives in Parliament assembled, we, the Citizens of the Commonwealth of Australia, residents in the State of Western Australia do humbly petition and pray that all levels of Government responsible in Australia will take note of the wishes of we, the Citizens, in so far as we request:

That the Commonwealth co-operate with all authorities to ensure the early sealing of the one East-West road link, the Eyre Highway, and that urgent consideration be given to increasing the maintenance of the road in the intervening period and endeavour to curtail the dreadful road toll, injury and vehicle damage.

That the Commonwealth consider this road as a Defence Measure for the whole of Australia and road link connecting the two coasts of the Continent, and consideration to the sealing from the aspect of the increase of Trade and Tourism within Australia, thus encouraging the retention of the finance in Australia which is now going overseas. Consideration be given on the grounds of a better understanding between the people of all of the States of Australia, because of their improved ability to travel and meet one another.

That consideration be given to one of the most heavily taxed groups within the community, the motorist, and be given the opportunity to enjoy some of the tax fee as charged, by being able to travel with reasonable comfort and safety on the major highways of Australia.

That consideration be given to returning specifically for this purpose the increased revenue received from the. increase in petrol tax.

We, the Petitioners humbly pray that the House of Representatives in the Parliament Assembled would take immediate steps to ensure provision of funds to provide for the all weather sealing of this important highway, the Eyre Highway, linking East and West and your Petitioners as in duty bound, will ever pray. by Mr Bennett.

Petition received.

Perth Airport

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The Humble Petition of the undersigned residents of the State of Western Australia respectfully showeth:

That the present site of the Perth Airport is unsuitable because of -

  1. the morning fogs
  2. its proximity to the Darling Ranges
  3. its lack of planning, prior to construction
  4. the loss to the local authority in rates and loss to the community in acreage of development area and assets
  5. the restriction placed on the development of surrounding shires due to existing flight paths and proposed flight paths; and
  6. the adjacent areas to the airport are suffering loss of value due to their unsuitability for high density development

Your petitioners therefore humbly pray that action be taken to remove Perth Airport from its present site to the site planned by Professor Stephenson’s overall plan for the City of Perth, that is at Lake Gnangarra. And your Petitioners, as in duty bound, will ever pray. by Mr Bennett.

Petition received.

Nuclear Tests

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of citizens of the Commonwealth of Australia respectfully sheweth:

That the action of the French Government in undertaking the testing of nuclear devices in the Pacific area is detrimental to the people of countries in the region who have friendly relations with Australia and may have detrimental effects on children yet to be born in those countries and in Australia.

Your Petitioners therefore humbly pray that every possible step be taken to persuade the French Government to stop the tests. And ypur Petitioners, as in duty bound, will ever pray. by Mr Giles.

Petition received.

Education

To the Honourable the Speaker and the Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned electors in the State of New South Wales respectfully sheweth:

  1. The nation-wide Survey of Educational Needs undertaken by the Australian Education Council has provided clear evidence that government education in the various States is failing children on a massive scale.
  2. The following conditions at the Lake Car gelligo Central School give further evidence of the needs in the State education system.

Lack of adequate toilet facilities for staff and children. Inadequate play and sporting areas.

Your petitioners therefore respectfully pray that your Honourable House will (i) make immediate!); a substantial Federal emergency grant to all State Governments for education services and (ii) carry out a public national survey to determine needs of the States after 197S.

And your petitioners, as In duty bound, will ever pray. by Mr Grassby. Petition received.

Postmaster-General’s Department

The Honourable The Speaker, and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That the Postmaster-General’s Department Central Office policy, of centralising Post Office affairs and activities under the various titles of Area Management, Area Mail Centres, Area Parcel Centres and similar titles is resulting in both loss of service and lowering of the standards of service to the public, directly resulting in the closing of Post Offices, which is detrimental to the public interest

Your petitioners most humbly pray that the House of Representatives in Parliament assembled will take immediate steps to: 1. Cai) a halt to all closing of Post Offices and reorganising within the Post Office until full details of the proposed savings and all details of alteration to the standards of service to the Public are made available to Parliament, and

  1. Initiate a joint Parliamentary inquiry into the Postmaster-General’s Department, to assess the degree on which it should be run as a normal business undertaking and to what extent its unprofitable activities should be subsidised as a public service charged more correctly to National Development

And your petitioners, as in duty bound, will ever pray. by Mr Les Johnson and Mr Keogh.

Petitions received.

Education

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully sheweth:

  1. That the Australian Education Council’s report on the needs of government education services has established serious deficiencies in education, the most important areas being a severe shortage of teachers, inadequate accommodation, and, as a result, oversized classes.
  2. That extra Federal finance is urgently required to save the government school system.
  3. That while the needs of the government schools are being neglected, large amounts of public money is being given, in various and numerous grants, to private schools.

Your petitioners most humbly pray that the House of Representatives in Parliament assembled will take immediate steps to make emergency Federal finance available to the States for State school education, and divert the large sums of public money being spent on private schools, to the government school system for which the government is truly responsible. And your petitioners, as in duty bound, will ever pray- by Mr Morrison.

Petition received.

Sydney Airports

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

  1. That the amenities of residents In the vicinity of Kingsford Smith Airport are being affected by the rapid growth of aircraft traffic and the accompanying increase in aircraft noise.
  2. That by failing to enforce the curfew between 11 p.m. and 6 a.m., the Government has added further to the burden of residents.
  3. That the delay in selecting a site for a second airport has effectively postponed alleviation of the noise nuisance for residents in the vicinity of Kingsford Smith Airport.

Your petitioners, therefore, most humbly pray that:

  1. The curfew between 11 p.m. and 6 a.m. at Kingsford Smith Airport be rigidly enforced.
  2. The site of a second airport for Sydney be selected without further delay.
  3. Noise limits be placed on aircraft operating at Kingsford-Smith Airport and that the operating rights of companies persistently violating the limits be withdrawn.

And your petitioners, as in duty bound, will ever pray. by Mr Reynolds.

Petition received.

page 9

LEADER OF THE HOUSIE

Mr McMAHON:
Prime Minister · Lowe · LP

– I wish to inform the House that the Minister for National Development, Sir Reginald Swartz, has informed me that in view of his impending retirement at the end of this Parliament he wishes to relinquish his position as Leader of the House. I have accepted Sir Reginald’s decision with very great regret. He has carried out these most onerous and responsible duties with distinction and has been an outstanding Leader. I have appointed as the new Leader of the House the Minister for Customs and Excise, Mr Chipp. However, I have asked Sir Reginald, and he has agreed, to make himself available to the Minister for Customs and Excise, and to myself and the Government, in a consultative capacity in relation to matters of House proceedings.

Mr WHITLAM:
Leader of the Opposition · Werriwa

– Mr Speaker, may I have leave to say that my Party agrees with the description which the Prime Minister gave of the Minister for National Development as Leader of the House.

page 9

NOTICE OF MOTION

Mr BEAZLEY:
Fremantle

- Mr Speaker, I give notice that at the next sitting I shall move:

That this House has no confidence in the Minister for the Interior because of his handling of the affair of the removal of the Aboriginal ‘Embassy’ from the lawns in front of Parliament House.

Mi CHIPP (Hotham- Minister for Customs and Excise) - by leave - I would like to indicate that after question time we will move for the suspension of Standing Orders to allow this motion to be dealt with this afternoon on the explicit understanding that the Budget will come on at 8 p.m. and consequently we will take action to ensure that the debate on this motion is terminated at an appropriate time before 6 p.m.

page 10

QUESTION

THE BUDGET

Mr WHITLAM:

– I ask the Prime Minister a question. The right honourable gentleman will have noted the exceptionally detailed forecasts of the provisions in tonight’s Budget which were given on a television network last Sunday night. While the accuracy of these forecasts naturally cannot be tested until the Treasurer delivers his speech tonight, I ask the Prime Minister whether he can assure the House that he had no discussions with this particular commentator about the Budget. I also ask him whether he has checked with his Ministers on whether they had any discussions with this commentator.

Mr McMAHON:
LP

– This question is predicated on the assumption that the speculations are correct. As soon as the Budget is heard tonight honourable members will be able to make up their minds as to their accuracy or inaccuracy.

page 10

QUESTION

INQUIRY INTO POVERTY

Mr BROWN:
DIAMOND VALLEY, VICTORIA

– I direct a question without notice to the Prime Minister. I ask whether he is aware of the large number of citizens throughout the Commonwealth who are concerned about the nature and extent of poverty within Australia? Is it not so that something in the nature of a national inquiry into poverty in Australia would help the nation and governments to ascertain ibo extent and nature of poverty in this country? If so, will the Prime Minister reconsider the Government’s decision with respect to holding such an inquiry with a view to ensuring that a national inquiry into poverty is conducted?

Mr McMahon Yesterday I received a letter from the honourable gentleman advising me that he intended to ask in the House a question relating to this problem. I can assure him that-

Mr CLYDE CAMERON:
HINDMARSH, SOUTH AUSTRALIA · ALP

– Mr Speaker, I must take a point of order. Usually it is not possible to prove that a question is with notice. The Prime Minister has done that for me, if we can believe what he says. Therefore I suggest that you rule the question out of order, as you must do because the Standing Orders say that questions asked during question time shall be without notice. This question is clearly with notice on the Prime Minister’s own say-so.

Mr SPEAKER:

-Order! The honourable member for Hindmarsh has asked me to rule the question out of order. The honourable member for Diamond Valley informed the Chair that he was asking the question without notice and I accept his word.

Mr McMAHON:
LP

– I did not know it was to come on today in this sense. Coming back to the question, the Government has again given consideration to the problem of holding an inquiry into poverty in Australia and we have agreed that such an inquiry will be instituted. Already the Minister for Social Services has prepared draft terms of reference which will be further considered by the Government, and when that has been done we will decide on the person or persons who will carry out the inquiry.

page 10

QUESTION

AUSTRALIAN TROOPS IN SOUTH EAST ASIA

Mr BARNARD:
BASS, TASMANIA

– I ask the Prime Minister a question. I direct his attention to a statement by the Prime Minister of Singapore, Mr Lee, at a National Day celebration on Sunday. Mr Lee stated that his Government would accept a policy of troops withdrawal from the South East Asian region if the Labor Party became the next government of Australia. He confirmed also Singapore’s military ability to defend itself and stand on its own 2 feet. I ask the right honourable gentleman: Does not this statement make a mockery of his Government’s claim that Labor policy would be unacceptable to Singapore? Finally, has not Mr Lee’s affirmation of Singapore’s independent defence strength destroyed the last remnants of the Government’s forward defence policy?

Mr McMAHON:
LP

– On the contrary, I have the full text of what has been said by the Prime Minister of Singapore. He said that he accepts - and rightly accepts - the constitutional position of the Australian Government. He went on to say that if the Australian Labor Party did become the Government, it would have a sovereign right to withdraw troops from Singapore. That is the context in which the statement of the Prime Minister of Singapore has to be accepted. I remind the honourable gentleman of our policy, which is welcomed by the governments of Malaysia and Singapore. They welcome our troops there and they have not expressed any intention of withdrawing them. We too, if I can state our position very clearly, are anxious and willing to retain our troops there while they are wanted. As the honourable gentleman would know from the statements I made while I was overseas, in the communique between Tun Razak, the Malaysian Prime Minister, and myself and in statements made while I was in Singapore, our Air Force is welcomed in one place and elements of our fighting Services in another.

I also point out to the House that not only must it be recognised that if the Labor Party has its way we would have no capacity to bring a degree of confidence to these countries and to give them an ability to expand their operations in order to have greater development programmes, but it is my belief that if the statement made by the Deputy Leader of the Opposition were accepted we would have very little capacity to defend ourselves.

page 11

QUESTION

RIVERSTONE MEATWORKS

Mr ERWIN:
BALLAARAT, VICTORIA

– I ask the Minister for Labour and National Service: Is it a fact, as announced in all Australian newspapers; that the Riverstone Meatworks, situated some 30 miles from Sydney, has been closed down and that 690 employees have lost their jobs as a consequence of this closure? Is it also a fact that in the last 7 months 168 unauthorised stoppages have taken place at this meatworks? Did any member of the Australian Council of Trade Unions or any member of the Labor Party move in any way to prevent this anarchic nonsense or were orders taken from the left wing unions that the members of the Australian Labor Party were not to intervene in any way to prevent this stupidity over the last 7 months? Is the Minister aware that I ask this question at the request of a great number of the men and their families?

Mr LYNCH:
Minister for Labour and National Service · FLINDERS, VICTORIA · LP

– I can well understand the honourable gentleman’s concern about the impact that the announcement which was widely reported in the national Press during the last weekend has had directly on the men concerned and their families and, of course, on the operation of the plant.

Mr Armitage:

– Owned by Vesteys.

Mr LYNCH:

– The facts are that the Riverstone Meat Co. Pty Ltd has announced the retrenchment of some 700 workers and the closure of sections of its meat operation which is a subsidiary’ of the W. Angliss Meat Company. The reason for this is clear and was adverted to by the honourable gentleman - that is, that since January this year there have been 168 stoppages in this plant. Of course, that will have an impact on honourable gentlemen on this side of the House as it should have on honourable gentlemen on the other side of the House. It is a classic example of the extent to which unemployment in the community at the present time is caused by sporadic stoppages of the type which have been mentioned and which have been condoned consistently by members of the Opposition. As the honourable, gentleman mentioned in his question, I recall no statement made by any member pf the Opposition or any member of the Australian Council of Trade Unions , deploring what has been a series of irresponsible stoppages which have led directly to the unemployment of men. The House might well ponder the simple fact that here again is a circumstance in which 700 men have lost jobs and sections of a company have been closed down simply because of the 168 stoppages to which they have been subject during a period of only 6 to 7 months. It is almost inconceivable that this should be the case, but in- fact it is the case and it is a point well worth the attention of honourable gentlemen on the other side.

page 11

QUESTION

SOCIAL SERVICES

Mr COPE:
SYDNEY, NEW SOUTH WALES

– I preface my question by stating that Mr John Kinsela, a constituent of mine, captain of the- Australian wrestling team at the Munich Olympic Games and a representative of Australia at the 1968 Mexico Olympic Games, also the holder of the Queen’s Scout Award, the Duke of Edinburgh Gold Award, a leader in Rotary Youth and a Vietnam veteran of 1970-71, used his savings as a deposit on a small oar of which he was owner-driver for All Purpose Messengers. John, a part Aborigine, is one of a big family that he helps to support and also has a wife and 9-weeks old baby living with his mother and family, but owing to John’s being in Munich his wife, child, mother and younger members of the family are now in straitened circumstances. I ask the Minister for Social Services whether there is any way in which his Department can assist to alleviate their distress.

Mr WENTWORTH:
Minister for Social Services · MACKELLAR, NEW SOUTH WALES · LP

– The honourable member was good enough earlier today to bring this matter to my attention. There are no funds at my disposal which could be used for this purpose, but I have no doubt that the Australian people would see that funds were made available. I know that honourable members in this House, including myself, would be only too willing to see that this matter was made good. But I have had today a communication with officials of the Australian Amateur Athletics Association. There is some difficulty about the breaching of Olympic rules and this has to be looked at to see what can be done. I think we can assure the people concerned that something will be done, although we will be careful to stay within the limits imposed by the Olympic Committee.

page 12

QUESTION

MEAT QUOTAS

Mr O’KEEFE:
PATERSON, NEW SOUTH WALES

– I direct a question to the Minister for Primary Industry. Has the elimination of beef quotas to the United States of America meant increased sales for Australia? Have sales to Japan and other markets increased considerably? With this upsurge in beef export, has Australia sufficient abattoir and processing plants to cope with this huge increase? Can the Minister advise what the present position is and say whether any plans are being made to increase our processing facilities?

Mr SINCLAIR:
Minister for Primary Industry · NEW ENGLAND, NEW SOUTH WALES · CP

– It is true that as a result of the increase in Japanese quotas and the lifting of the import quota in the United States this year there will be con siderable opportunities for Australian meat exporters. I am assured by my Department that there is an adequacy of available facilities but much will depend on the degree to which they can be utilised. Already during this question time my colleague, the Minister for Labour and National Service, has identified one area in which the available facilities are constricted by irresponsible stoppages, activities which of course directly affect the ability of exporters to supply the available market and to satisfy the needs of customers who are willing purchasers. If any similar movement were to spread throughout the meat industry it would be doubtful whether there were sufficient facilities. I am assured that given the availability of facilities and preparedness to work more than one shift per day, however, there is every ability within the availability of existing structures for the expected level of demand to be satisfied.

page 12

QUESTION

TASMANIAN SHIPPING SERVICES

Mr DUTHIE:
WILMOT, TASMANIA

– Is the Minister for Shipping and Transport aware that 95 per cent of Tasmania’s cargo trade is carried by sea, with no road or rail alternatives as on the mainland? Has the Minister power to cancel out, in the public interest, a decision of the Australian National Line to increase freight rates? Is he aware of the recent freight rate rise which has again cast a blow at Tasmania’s economy, especially at the tourist trade? Finally, will this Government seriously consider a freight subsidy as was paid in the days when the ‘Taroona’ operated across the Strait? The position today is much worse than it was then.

Mr NIXON:
Minister for Shipping and Transport · GIPPSLAND, VICTORIA · CP

– I am certainly aware of the changes in freight rates that the Australian National Line has effected in the Tasmanian trade. The freight rate increases average 1 per cent across the board. There was no general increase in the freight rate to Tasmania on this occasion. Rather, the Australian National Line sought to rationalise the services to Tasmania in an effort to meet the problems of increasing costs of wages, repairs and maintenance. Despite all its efforts of rationalising to meet increasing costs, the ANL nevertheless has had to make some adjustments to the freight rates. As a result, as I have said, it has increased freight rates on an average by 1 per cent. This increase will raise approximately an extra $200,000 against a possible or estimated loss of $1.8m, the balance of which the ANL is trying to save by the rationalisation programme. The ANL has increased the fares on the passenger service, which is its heavy loser, on the run to Sydney by 10 per cent and on the run to Melbourne by 15 per cent. This will raise an extra $150,000. Certainly, the increased charges are to be regretted, but in the face of the awful increases in costs for wages, repairs, maintenance and general overhauls that the Line has suffered, there was nothing else that it could do. The honourable member raised a question of freight subsidy. This is a proposal that has been looked at from time to time by the Government and has been rejected from time to time.

page 13

QUESTION

UNEMPLOYMENT

Mr BURY:
WENTWORTH, NEW SOUTH WALES

– My question is addressed to the Minister for Labour and National Service and concerns the latest unemployment figures. Has the Minister’s Department made any estimate of the extent to which this increase in unemployment has been brought about by the difficulties of firms countering higher costs due both to labour disputes and to meeting excessive wage demands? Furthermore, has the Minister been able to keep any tally of the number of smaller firms throughout the country which have been obliged to close down for the same reasons?

Mr LYNCH:
LP

– My own Department has not carried out studies of the type suggested by the honourable gentleman but I believe that this certainly would be a worthwhile area of inquiry at present, because if one looks back at the calendar year of 1971 one will see that average weekly earnings during that 12-monih period increased by 12.5 per cent and the consumer price index increased by 4.8 per cent as against a long term productivity growth increase of 2.5 per cent. As the honourable gentleman inferred, or directly stated, one of the inhibiting factors in the labour policies of companies throughout this country certainly is the high cost of labour. This is clear if one reflects on the increase in average weekly earnings to which I have made reference. There is no doubt that this is a factor not of insignificance in relation to the employ ment policies of employers at present. Equally, as the honourable gentleman has said, the continuing series of stoppages is a major factor which impacts itself upon the whole problem facing the Australian com*munity. which is the confidence of the business community in relation to investment and of consumers in relation to thenspending patterns. As the House will be well aware, during the last year the number of man days lost was 3 million, which was an increase of 28 per cent over that of the previous year. The Australian wage earners during that period lost-

Dr Klugman:

– By how much have you reduced unemployment?

Mr LYNCH:

– I would have thought that honourable gentlemen opposite might well have been interested in the plight of wage earners in relation to loss of wages caused by strikes. The wage earners, whom the Opposition alleges it represents, lost during that period a total of $46m, which itself represented an increase of 46 per > cent over that of the previous year.

page 13

QUESTION

NATIONAL SERVICE

Dr J F Cairns:
LALOR, VICTORIA · ALP

– I direct my question to the Minister for Labour and: National Service. I understand that recently the Minister or his Department announced that 7,775 or a similar number of men ‘have been denied the benefit of the ballot’. Is this correct? To what period does that figure relate? Does it mean that 7,775, or some similar number of men have failed to register or have committed some other offence against the National Service Act and were not prosecuted? If so, why were they not prosecuted? If they were not prosecuted, what does ‘denied the benefit of the ballot’ mean? What did happen to these men? If they were not prosecuted were others who committed similar offences prosecuted? Why has there been a difference?

Mr LYNCH:
LP

– The honourable gentleman asks a series of detailed questions. Of course, I will examine the questions which he has posed for the purpose of supplying a written answer. No member of this House would expect any Minister to carry such information with him in order to give an impromptu response to a question without notice. The honourable gentleman is making the allegation or inference, or the direct statement, that this Government is not vigorous in relation to its follow up of defaulters under the National Service Act. The facts simply are these, as I recall them: In the first place, the proportion of those who do not register for national service is approximately 2 per cent. The proportion of those persons in the second area of default, that is those who do not attend for medical examination, is 0.3 per cent or 0.03 per cent’, whatever it is, it is still insignificant. The proportion of those in the third area of default, that is those who fail to render service, is 0.2 per cent. These facts indicate quite clearly that there is no substance in any general allegation that the Government is not vigorous in enforcing the requirements of the National Service Act.

The honourable gentleman specifically asked some questions about figures. In 1971-72, 106,833 persons registered for national service. The number of persons registered up to 30th June 1972 - a period of 74 years - was 749,922. Those who failed to register at the appropriate time and therefore were denied the benefit of the ballot in the year 1971-72 numbered 2,306, or 2.2 per cent of the total. Some 723 were prosecuted and convicted for failing to register during that period.

page 14

QUESTION

USTASHI MOVEMENT

Mr JESS:
LA TROBE, VICTORIA

– Is the Prime Minister aware of reports that the Australian Labor Party intends to move for a parliamentary investigation into the so-called terrorist activities of the Ustashi movement? The Prime Minister will agree that the Australian people resent overseas politics being introduced into Australia. Therefore, will the Prime Minister agree to such an inquiry, but will he ensure that any such investigation is not restricted to just this one group but covers all groups whose intention is to subvert and to bring about chaos and anarchy within Australia on behalf of foreign ideologies? Or are we in Australia interested only in controlling subversion in overseas Communist countries?

Mr McMAHON:
LP

– Already the Commonwealth has made investigations into the alleged operations in Australia of subversive organisations from overseas, particularly as to whether certain kinds of operations were carried out by the Mafia or by similar types of organisations. Crown Law officers and the Attorney-General also have been investigating allegations that people formerly resident in Australia were involved in subversive operations in another country. I can assure the honourable member that Crown Law officers and the Attorney-General on behalf of the Government, are investigating each of these matters in great detail. The AttorneyGeneral has made a public statement, I believe within the course of the last 3 or 4 days.

I go along with the honourable gentleman when he suggests that not only should we be looking at the activities of the types of subversive organisations I have mentioned which engage in threats, intimidation and other kinds of atrocities but that also we should be interested in those which by force and by other forms of objectionable practice are determined to overthrow democracy in this country. I will refer this matter to the Attorney-General and ensure that he inquires fully into the problem raised by the honourable gentleman.

page 14

QUESTION

ABORIGINAL ‘EMBASSY

Sir WINTON TURNBULL:
MALLEE, VICTORIA

– My question is addressed to the Minister for the Interior. 1 ask: Approximately what was the percentage of Australian Aborigines of those until recently encamped on the lawns in front of this House in the so-called Aboriginal ‘embassy”?

Mr HUNT:
Minister for the Interior · GWYDIR, NEW SOUTH WALES · CP

– I cannot give the honourable gentleman an accurate estimate of the percentage of Aborigines to Europeans who were camped at the ‘embassy’. We did have a transitory group of people over the period of the 6 months that they were camped in the ‘embassy’. In fact, when one group left another group arrived. They were mostly part Aborigines. On the days of confrontation, certainly the Aborigines and part-Aborigines were in the minority to the Europeans who were involved in the confrontation.

page 14

QUESTION

AUCTION SALES

Mr SCHOLES:
CORIO, VICTORIA

– My question is directed to the Minister for Customs and Excise. I ask the Minister: Has his Department completed investigations into auction sales conducted in various parts of Australia which purported to be under the auspices of his Department? Has the Minister found any illegal activities involved with those auctions, and what action has his Department taken to protect the public interest in this matter?

Mr CHIPP:
Minister for Customs and Excise · HOTHAM, VICTORIA · LP

– Because this matter could be sub judice the honourable member will forgive me for answering the question in a different way from which it was put to me. The honourable member will recall writing to me, I think in June, pointing out that certain auction sales which purported to be auction sales of customs goods were taking place, whereas in fact the sales were not of goods that had been confiscated by my Department. We have conducted extensive inquiries and have discovered that there has been some confusion, either deliberately or accidentally caused, not only in Victoria but in other States, by use of the word ‘custom’ in the advertising matter and, in some cases, by salesmen wearing uniforms that bordered perilously close to those uniforms used by customs officers some years ago. The matter has been referred, in certain specific cases, to the Crown Law authorities and other action is being taken to make the public aware of this matter. I might say that when such sales of confiscated customs goods are made they are advertised by the Collector of Customs in each State and the sales are conducted through reputable, well recognised auctioneers only. I thank the honourable gentleman for bringing the matter to my attention.

page 15

QUESTION

MEDICAL PRESCRIPTIONS

Mr DRURY:
RYAN, QUEENSLAND

– I ask the Minister representing the Minister for Health: Will he, in the interest of economy, both of time and money, confer with his colleague in another place with a view to allowing members of the medical profession to prescribe larger quantities of approved drugs for chronically ill patients?

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

– I will be glad to discuss the honourable gentleman’s question with my colleague but I should point out to him that the maximum quantities that are prescribed are the quantities recommended by the Pharmaceutical Benefits Advisory Committee. In nearly all cases, as I understand it, they are related to the particular requirements of a course of treatment. Quite apart from that there does exist, under the Act, authority for the Commonwealth Director of Health in the State concerned, on application by the patient’s medical practitioner, to authorise a larger quantity than that laid down, namely, 3 months supply. But it is up to the doctor whether he applies; because he might feel it necessary, in the patient’s interest for the patient to come back and see him so that he can check on the patient’s condition in a shorter period than 3 months. I will convey the honourable gentleman’s question to my colleague and ask him to supply the honourable member with a detailed reply.

page 15

QUESTION

PURCHASE OF EVERARD PARK

Mr WALLIS:
GREY, SOUTH AUSTRALIA

– Can the Minister for the Environment, Aborigines and the Arts inform the House whether the Commonwealth ever held an option to purchase Everard Park in north west South Australia? If so, was this station sold while the Commonwealth still held the option? Can the Minister confirm that Mr B. MacLachlan has now offered the property to the Commonwealth at the price at which he purchased it and whether this offer has been accepted? How does Mr MacLachlan’s purchase price compare with the original price offered by the Commonwealth for this property? Will the Minister confirm the statements he made in the Press and elsewhere to the. ‘ effect that someone had gone behind the Commonwealth’s back in the original purchase? Had the Commonwealth given consideration to exercising its powers to acquire Everard Park prior to Mr MacLachlan’s offer to sell the property to the Commonwealth following the public outcry over the whole transaction?

Mr HOWSON:
Minister for Environment, Aborigines and the Arts · CASEY, VICTORIA · LP

– -Negotiations with Mr MacLachlan are now in the process nf being completed; As I have informed the nation already, general agreement, in principle, has been reached between Mr MacLachlan and the Commonwealth. The details still are being worked, out and as soon as the final arrangements have been made I will inform the House. ‘

page 15

QUESTION

CIGARETTE ADVERTISING

Mr HAMER:
ISAACS, VICTORIA

– Can the PostmasterGeneral say when the regulations on warnings to be given with radio and television advertising of cigarettes will be introduced?

Sir ALAN HULME:
Postmaster-General · PETRIE, QUEENSLAND · LP

– Honourable members will remember that there was a meeting of Commonwealth and State Ministers on the matter of a warning on cigarette packets. I was informed that some of the States could not see their way clear to include a warning on cigarette packets until 1st May next year. Having made inquiries, I understand that 2 States - Western Australia and Victoria - will require the warning to appear on packages as from 1st January. Under that circumstance I believe that the proclamation relating to advertising on radio and television should apply from the same date. It will apply for the whole of Australia, So, there will be an element of conflict in some States as between the warning given on packages and that given on radio and television.

page 16

QUESTION

TELEVISION

Mr LUCHETTI:
MACQUARIE, NEW SOUTH WALES

– I ask the PostmasterGeneral to investigate personally the inordinate and unjust delay in providing satisfactory television reception in the Portland, Wallerawang and Cullen Bullen areas of New South Wales. Does the Minister know that the national and commercial translator stations were promised to be completed by mid-1972 and that the national station now is not expected to be in operation before the first quarter of 1973? As the viewers are subjected to inferior television reception but are paying the same licence fees as those who enjoy satisfactory standards, will the Minister take action to end this injustice?

Sir ALAN HULME:
LP

– It is very easy for honourable members to make assertions such as the honourable member has made relating to delays. I am sure that the majority of the Australian public appreciate that great technical requirements are involved in the establishment or furtherance of television in any part of Australia. A good deal of the equipment must come from overseas and, if there is delay in delivery of that equipment, there is delay in completion of the installation. I assure the honourable member, as I assure those members of the public who do not have television and wish to have it at an earlier time than it is expected to be provided, that every endeavour is made by the authorities responsible to meet target dates; but this is not possible in all cases, for reasons beyond the control of those who have the responsibility.

page 16

QUESTION

TELEVISION

Mr LLOYD:
MURRAY, VICTORIA

– I address my question to the Postmaster-General. He will recall his announcement Of the proposed introduction of colour television by 1975. Can he inform the House whether, to his knowledge, individual country television stations will be able to finance the changeover from black and white to colour television? Will he assure the House that country television stations will be protected from takeovers, amalgamations or other loss of identity in contravention of the .Broadcasting and Television Act as a result of the cost of providing colour television in order to meet competition?’

Senator ALAN HULME:
Postmaster-General · PETRIE, QUEENSLAND · LP

– It is a fact that colour television will be possible as from 1st March 1975. It is .not . expected by the Government - or, I think, by most members of the House - that every station will have colour television as. from 1st March 1975. That statement applies to the national service, as well as to. the . commercial service. The commercial stations are protected to a degree by the ownership provisions of the Broadcasting and Television Act and it is not anticipated -that any. other protection will be required for them. I think most of us appreciate that some stations will find no difficulty in financing the establishment, of colour television, whereas others may have difficulty. I think it will be understood that there will be delay in the case of some stations, but I . will be surprised if there are many stations which are not able to arrange the necessary finance to achieve the introduction of colour television by a date not long after 1st March 1975. ‘

page 16

QUESTION

NATIONAL SUPERANNUATION

Mr WHITLAM:

– As the Prime Minister has now changed his mind and agreed to. hold a public inquiry into poverty I ask him whether he has yet agreed to hold a public inquiry into overseas practices and Australian proposals on. national superannuation, which have hitherto been rejected by him and his colleagues.

Mr McMAHON:
LP

– I do not remember making a statement about the matter referred to by the honourable gentleman. I will have a look at the records and I will advise him what the results are.

page 17

QUESTION

OIL STRIKE

Mr ERWIN:

– My question is directed to the Minister for Labour and National Service. During the recent oil strike what action was taken by the Government and what influence was brought to bear by other parties to bring the ridiculous oil strike to an end?

Mr LYNCH:
LP

– During the recent oil strike in this country fuel was cut off to the community, some tens of thousands were thrown out of work and the jobs of hundreds of thousands were put in jeopardy because a small group of trade unionists in this country was prepared, against the interests of the great majority of the wage earners of Australia, to refuse to accept the interim decision which had been handed down by His Honour Mr Justice Moore and to down tools at the expense of their fellow unionists and at the expense of the country. The honourable gentleman asked me what action was taken by the Government. As honourable gentlemen on this side are very well aware, the Prime Minister, in a very firm statement, foreshadowed that this House would be called together if the strike were not solved within a period of 5 working days. That initiative was then followed by the initiative taken by Mr Laurie Short of the Federated Ironworkers Association, and finally the initiative taken by His Honour Mr Justice Moore. These were the significant developments which led to the solution of that dispute.

I do not know what the honourable gentleman means by ‘other parties’. If he refers to the official Opposition in this chamber, the House will be well aware that the Opposition took no concrete or constructive approach In seeking to solve this dispute, except to say that the parties ought to continue talking. There were no suggestions from the Leader of the Opposition that the men ought to return to work and negotiate their claims before the Conciliation and Arbitration Commission. Let me say by way of a casual observation what a pathetic comment it is on Opposition members in this chamber that on a day following the release of the employment figures for this country there has -been not one question on unemployment from the Opposition.

page 17

UNEMPLOYMENT IN WESTERN

page 17

QUESTION

AUSTRALIA

Mr BERINSON:
PERTH, WESTERN AUSTRALIA

– Taking up the Minister’s invitation with pleasure, I direct a question to the Prime Minister. Is it a fact that Western Australia has now had a higher rate of unemployment than any other mainland State for over a. year? Is it also a fact that, unlike most other States, Western Australia’s unemployment is concentrated in the metropolitan area where no assistance at all is received from the Commonwealth’s only emergency employment measure, the rural unemployment grant? Has the Commonwealth ignored or rejected at least 3 requests from the Western Australian Government for unemployment relief directed specifically to the metropolitan area? If so, why?

Mr McMahon:

– I ask the Minister for Labour and National Service to answer.

Mr LYNCH:
LP

– The honourable gentleman queries the position in relation to unemployment in Western Australia. It is certainly true that it is running at a much higher level than the national, average. It is also true that the Western Australian unemployment figures have been running at a much higher level than the national average for a long period of time. The honourable gentleman concurs; I see him nodding his head. The facts are that in the labour market in that State a deterioration has taken place during the course of the past 2 to 3 years. The factors which have been responsible for that position are simply these: Firstly, there has been the turndown in the number of major developmental projects and this has reduced employment in that area from 10,000 to - as I recall it - approximately 3,000. This has had an effect on associated manufacturing, supplier and engineering firms. Secondly, there has been a turndown in mineral activity because of trading conditions which will be well known to the honourable gentleman as he comes from that State. Also I recall the downturn in primary industry from about 1969. But there are some encouraging factors in

Western Australia. Firstly, farmers are reporting better seasons. Secondly, there are signs of increased optimism in the building and construction industry. Finally, the goldmining industry is expected to reach this year its highest production level for many years.

I discussed this matter with the Western Australian Minister for Labour during a recent visit to that State. Naturally, the substance of my conversation with him is a matter for the Minister concerned and is not subject to comment in this House. The problem which faces Western Australia is not new and it is not due to any factors generated by the recent economic circumstances. In making that statement I am thinking of the past few months and the unemployment picture I have painted. The fact remains that the Western Australian Government must go out and sell that State. It must bring into Western Australia new and more broadly diversified industries of a labour intensive nature. Specifically, the answer to any question of special grants is no.

page 18

FIFTH CONFERENCE OF PRESIDING OFFICERS AND CLERKS OF THE PARLIAMENTS OF AUSTRALIA, FIJI, NAURU, PAPUA NEW GUINEA AND WESTERN SAMOA

Mr SPEAKER:

-I present the report of the Fifth Conference of Presiding Officers and Clerks of the Parliaments of Australia, Fiji, Nauru, Papua New Guinea and Western Samoa.

page 18

AUSTRALIAN INDUSTRIAL RESEARCH AND DEVELOPMENT

page 18

GRANTS BOARD

Mr ANTHONY:
Minister for Trade and Industry · Richmond · CP

– Pursuant to section 38 of the Industrial Research and Development Grants Act 1967 I present the Fifth Annual Report of the Australian Industrial Research and Development Grants Board for the year ended 30th June 1972.

page 18

BILLS RETURNED FROM THE SENATE

The following Bills were returned from the Senate:

Without amendment -

Appropriation Bill (No. 5) 1971-72.

Supply Bill (No. 2) 1972-73.

Income Tax Assessment Bill (No; 2) 1972.

Income Tax Assessment Bill (No. 3) 1972. Income Tax (International Agreements) Bill 1972.

Airline Equipment (Loan Guarantee) Bill 1972.

Loans (Australian National Airlines Commission) Bill 1972.

Broadcasting and Television Bill 1972.

Australian Institute of Marine Science Bill 1972.

Papua New Guinea Loan (International Bank)

Bill 1972. Tariff Board Bill 1972. Public Works Committee Bill 1972. States Grants (Advanced Education) Bill 1972. Gold-Mining Industry Assistance Bill 1972. Social Services Bill (No. 3) 1972. Stevedoring Industry (Temporary Provisions)

Bill 1972.

Without requests -

Appropriation Bill (No. 4) 1971-72. . Supply Bill (No. 1) 1972-73. Customs Tariff Validation Bill. 1972.

page 18

ASSENT TO BILLS

Assent to the following Bills reported:

Conciliation and Arbitration Bill 1972.

Seat of Government (Administration) Bill 1972.

Northern Territory (Administration) Bill 197Z .

Appropriation Bill (No. 4) 1971-72.

Appropriation Bill (No. 5) 1971-72.

Airline Equipment (Loan Guarantee) Bill 1972.

Loans (Australian National Airlines Commission) Bill 1972. .

Supply Bill (No. 1) 1972-73.

Supply Bill (No. 2) 1972-73.

Income Tax Assessment Bill (No. 2) 1972.

Income Tax Assessment Bill (Nov 3) 1972.

Income Tax (International Agreements) Bill 1972.

Broadcasting and Television Bill 1972. Tariff Board Bill 1972. Customs Tariff Validation Bill 1972. Gold-Mining Industry Assistance Bill 1972. Social Services .Bill (Nq. 3) 1972. . . Stevedoring Industry (Temporary Provisions) Bill 1972.

Australian Institute of Marine Science Bill

  1. ……

Papua New Guinea Loan (International Bank)

Bill 1972. Public Works Committee Bill 1972.’ ‘ States Grants (Advanced Education) Bill 1972.

page 18

QUESTION

SUSPENSION OF STANDING ORDERS

Mr CHIPP:
Minister, for Customs and Excise · Hotham · LP

– I ask leave of the House to move a motion to enable the honourable member for Fremantle (Mr Beazley) to move forthwith a motion of no confidence in the Minister for the Interior (Mr Hunt), of which he : has given notice for the next sitting.

Mr SPEAKER:

-Is leave granted? There being no objection, leave is granted.

Motion (by Mr Chipp) agreed to:

That so much of the Standing Orders be suspended as would prevent the honourable member for Fremantle moving forthwith the motion of no confidence in the Minister for the Interior of which he has given notice for the next sitting.

page 19

QUESTION

MINISTER FOR THE INTERIOR

Morion of No Confidence

Mr BEAZLEY:
Fremantle

– I move:

That this House has no confidence in the Minister for the Interior because of his handling of the affair of the removal of the Aboriginal embassy’ from the lawns in front of Parliament House.

In January there was a tent erected on the lawns in front of Parliament House to express the points of view of persons concerned about the position and status of Aborigines in this country. It was actually the second occasion on which such a tent was erected. Honourable members will recall that some 3 or 4 years ago a vigil was organised in front of Parliament House to express concern about the position of Aborigines in this country. As the weather at that time was cold and wet a tent was erected, not to the left of Parliament House - treating ‘left’ as one’s left when one stands - at the front door as occurred on the second occasion - but to the right of it. That tent was erected by Commonwealth police officers themselves. They erected h as a shelter for the demonstrators, and 1 understand that they put braziers in the tent to warm the demonstrators. I think it is obvious that that event of 3 or 4 years ago was what inspired the idea of having a tent on the lawns in front of Parliament House as a way of demonstrating. The first tent was erected by Commonwealth police officers themselves.

We have the advantage, through a debate in the Legislative Council for the Northern Territory, of finding out the assessment by the Minister for the Interior (Mr Hunt) of the situation. Upon that assessment he apparently acted. He expressed it in a telegram apologising for his inability to attend the opening of the Tennant Creek Sports Club. In explaining why he could not attend that function, he referred to what he regarded as the frightful dangers developing in Canberra. The Minister’s telegram read as follows:

Because elements of left wing unions and radicals threaten to cause violent demonstrations and possible bloodshed in Canberra this weekend, as was demonstrated last Sunday, I am required by the Prime Minister to return to Canberra for consultation and take steps to prevent radical elements from using Aboriginal movements for their own purposes.

This crisis situation is a cause of deep concern and, if violence does occur, the consequences will be alarming nationally.

Please convey my sincere apologies to people at Tennant Creek for inconvenience that has been caused.

Will make a point of visiting Tennant Creek in near future. Regards, Ralph Hunt.

This lurid assessment of the situation is apparently the motivation of the Minister’s actions. I am at a loss to understand the thinking of a succession of Country Party Ministers for the Interior whom we have had and who have handled the affairs of the Australian Capital Territory. I remember that in August 1966, when the present Leader of the Australian Country Party was Minister for the Interior, there suddenly appeared in the ‘Canberra Times’ a picture of a new riot squad being trained in Canberra as part of the Canberra police. They had machine guns; they had steel helmets; they had shields; and they had gas masks. After these photographs appeared in the ‘Canberra Times’. I asked the then Minister for the Interior why, in what was obviously the most peaceful capital in the Western world, it was necessary to create so fearsome a riot squad. I understand that a good deal of this equipment ultimately left the Australian Capital Territory and perhaps appeared later in Bougainville. It was similar to the equipment which was used during the original Bougainville clash. There seems to me to be a tendency to over-reaction, if not hysteria, on the part of Ministers who handle the affairs of Canberra.

I return to the present Minister for the Interior and the extraordinary statement that the situation in front of Parliament House involved ‘left wing unions and radicals’. Heavens above, the ‘Embassy’ had been there for about 7 months. I do not know what figures from left wing unions and radicals appeared there, but I would not have thought it would have mattered very much if people from left wing unions and radicals, or for that matter right wing unions, had appeared there. The ‘Embassy* was a tolerated demonstration over a period of 7 months. Subsequently a pretence was made to the public in a series of utterances that what had been discovered was that the Commonwealth Government jacked legal power to cope with squatters on public parks. When the case was before Mr Justice Fox, he pointed out that the Commonwealth had at all times had power oh an application to the court to remove the tent and that the Commissioner of Police and the Minister admitted that the Commonwealth had this power. The Minister did not seek that court procedure to remove the tent - as he wanted to - because there would have been a court case in which public arguments would have been put and reported. He wanted to avoid 2 things. He wanted to avoid a debate in the Parliament and he wanted to avoid any sort of discussion in the courts on civil rights.

The reaction of the Minister, apart from the completely unnecessary clashes which took place, has been to bring down a new ordinance - one which is unnecessary, as Mr Justice Fox pointed out, because of the already existing powers of the Commonwealth, but one in which significant changes in the law were made and made in a particular direction to which all parties represented on the Senate committee which examines regulations and ordinances have always taken exception, namely, the procedure set out in section 8c (1.) which reads: 8c. - (1.) An officer of the Department of the Interior authorised in writing by the Minister may, by instrument in writing under his hand, certify that land described in the instrument or by reference to a plan on or annexed to the instrument is unleased land that -

  1. belongs to the Commonwealth;
  2. is within the City Area; and
  3. is not within an area for the time being declared by the Minister, by notice published in the ‘Gazette’, to be, for the purposes of this Ordinance, a camping area.

The old ordinance denned the city limits of Canberra quite clearly. We now have a situation in which the Minister may empower an officer and that officer by instrument in writing can declare that an area comes within the scope of the regulations. No process of publicity is necessary. It is just this exchange of defined power to one exercised from an instrument in writing which gives force and possible objectionable character to the regulations about which people may not know. The situation will be worse when this procedure fs in force than what existed before the regulations were gazetted. The regulations were gazetted and they transformed the state of the law. Erroneous statements were given out from the Government to justify the promulgation of this ordinance to the effect that the Commonwealth lacked the power to prevent trespass. Therefore, the people occupying the land might have assumed that they had a legal right to be there - since the Government itself suggested there was no law. in 40 minutes after a change in the law people, outside were expected to know the law,; and then the proceedings of ejection took place. This is what led to the clash.

The critics of the Government were not all on the Labor, side. It happens that we have a distinguished senator who is a member of the Liberal Party of Australia and also an Aborigine. I refer’ to Senator Bonner. I will quote from a report in the Courier-Mail’ of Friday, 21st July. It reads:

In Charters Towers, aboriginal . Senator N. Bonner last night predicted that yesterday’s Canberra riot would lead to an upsurge of blackpower violence in Australia.

He said: ‘I just can’t see how it can be avoided now.

There are people in our community who will seize on this opportunity to use the ‘aboriginals for their own political gain.’

Senator Bonner who was in .Charters Towers on a ‘meet the people’ tour of Queensland, criticised the Federal Government for. enforcing the ordinance under which the police acted.1 -

He said he had been assured by Government colleagues that nothing would happen ‘ while Parliament was in recess. “They knew my feelings on the matter,’ he said.

I wanted the right to have this ordinance debated in Parliament.

I agree that Executive Council has the right to make certain decisions during recess.

However, in this instance, the Executive Council should not have exercised its authority.’’

Senator Bonner accused the Government of deliberately enforcing the ordinance before debate could take place.

He added: ‘I say categorically that I am disappointed with the Government tei the point of being disgusted with its action in this issue.’

We also are disgusted with its action in this issue. We share Senator Bonner’s opinion. This is the reason why this motion has been moved. The Minister may say that it was necessary to remove the tent. A similar viewpoint has been taken by the rel* vant committee of the Parliament of Western Australia, namely, that the tent in front of the West Australian Parliament House, which is a protest against the conditions of Aboriginal housing in Western Australia, should ultimately be removed. Discussions apparently took place between the Premier of Western Australia and the demonstrators and it was agreed that after the Budget they would remove the tent. Their hopes rested on the Budget providing an adequate amount for Aboriginal housing in Western Australia, which is estimated by the State Government to need $19m although I understand the Commonwealth offering has not been one-ninth of that sum. The demonstration will continue up to the time the Budget was introduced, to emphasise the position of Aboriginal housing. 1 repeat that they agreed to remove the tent after the Budget was introduced. This was the result of sensible conversations and not the bulldozing and unfair method which the Minister used.

Assurances apparently were given by the Government to the Aboriginal senator that the ordinances would be debated. What transpired was a deliberate evasion of the Parliament and the Minister’s counsel was unable to deny the point made by the judge in the court case that existing power was adequate for the Government if they went through the proper judicial process. All these things show that what the Minister wanted to do he wanted to do clandestinely. We can understand this if we accept the hysterical assessment which the Minister made in the telegram he sent concerning the Tennant Creek sporting club. If this is his assessment of the situation, it is extremely dangerous to have a Minister handling these situations who views himself as being confronted by a colossal, lurid left wing plot when he is dealing with a group of Aboriginal demonstrators outside. I do not agree with the utterances of Black Power people. I do not believe in the method adopted by the Minister. Many demonstrators were not associated with Black Power but were Aboriginal or partAboriginal persons genuinely concerned for their people. Not only were there reactions from Senator Bonner but also damaging reactions abroad. One of the most respected newspapers in the United Kingdom is the ‘Guardian’, which used to be called the ‘Manchester Guardian’. It drew attention to an appeal made to Her Majesty the Queen by the people ejected from that tent. That newspaper made the following comment:

The appeal made to the Queen recently by Australia’s Aborigines asking her to prevent the Canberra Government fron enacting legislation said to be discriminatory, is bound to cause considerable embarrassment to Mr McMahon’s Government.

The Aboriginal leaders have asked the Queen to order Australia’s Governor-General to reserve the promulgation ‘for your Majesty’s pleasure’ of an ordinance that would empower the Government to remove the Aboriginal ‘embassy’ which has been encamped on the lawns of the Federal Parliament for S months.

The embassy- a dozen tan-and-orange tents - was established earlier this year after the rejection of an appeal by Aborigines whose tribal lands were threatened by mining development

It has achieved remarkable success in focusing Australian opinion on the plight of the Aborigine.

Initially, the Federal Government tolerated the embassy, but as the issue became more of a thorn - and the protest more effective - it foreshadowed the introduction of an ordinance to clear the tents.

Australia’s racial policies already stick in the throats of Asian nations, and with the SEATO conference opening in Canberra next month the Government apparently felt that the embassy’s continued presence (within sight of the conference hall) could bring even worse problems.

The Aboriginal embassy’s letter told the Queen that, if the ordinance is allowed to become law, it is likely to result in a serious abrogation of the rights of all Australians, whether Aboriginal or otherwise, to bring before the Federal Parliament a continuous peaceful protest

We therefore appeal to your Majesty as Queen and the ultimate source of protection, to direct his Excellency the Governor-General, Sir Paul Hasluck, that, upon such time as the proposed ordinance is presented to him for promulgation, he reserve the promulgation of it for your Majesty’s pleasure.’

It is unfortunate and extremely damaging to Australia that in such temperate and sensible terms, although they may not be constitutionally informed, the denizens of that tent and the organisers of the demonstrations from the tent have put a statement of the utmost dignity correctly diagnosing the Government’s motives before the people of Britain.

I disliked the appearance of those tents outside. They were described by somebody as visual pollution. I take the point of view that they constituted visual pollution. The sight of the tents on what was a beautiful stretch seemed to me completely to spoil the view of Canberra. I travelled 21,000 miles with a select committee inquiring into Aboriginal voting rights, but that place was a palace compared to what I saw as a member of that committee and the conditions under which Aborigines live in the south-west of Western Australia, around Gnowangerup and elsewhere where the weather is extremely cold, or generally speaking, throughout the Northern Territory. I would say it was even superior to the transitional dwellings, usually made out of aluminium and entirely inappropriate to the climate where they are erected, which are built for Aborigines in the rest of Australia. So I say to myself: ‘Much as I disliked the place being out there, it put before us constantly the position of the Aboriginal people, especially in relation to their accommodation’.

One of the most distinguished Aborigines in the country, one of the most highly educated - Mr Phillip Roberts - many years before he was an employee of the Commonwealth spoke about the conditions of the Aborigines. He said: ‘You live like princes; we live like dogs in the dust’.. He was not referring to people who lived with the dignity of nomadic and tribal life and who do not particularly need the shelters in the form required by Europeans. He was referring to people whose aspirations are towards standards of living similar to those of Europeans. It is easy to deride these people. Some of them, not all by any means, use the jargon of New. York negro Black Power. They talk about Caucasians meaning white people. They are apparently unaware that Aborigines themselves are Caucasians. All these logical things we can point out. But outside this Parliament was a protest of the heart, which was by no means ineffective ia speaking to the conscience of Australia in the persons of thousands of tourists -and others who visit this city.

If we have any sensitivity at all, we should take the trouble to see the conditions of Aborigines to remind us of the problem with which we ought to be deal. ing motivated by the utmost generosity. All through this situation we had firstly a Liberal Minister in charge of Aboriginal Affairs, the Honourable W. C. Wentworth, and now we have the Minister for the Environment Aborigines and the Arts, the

Honourable Peter Howson co existing with a Country Party Minister in charge of the land and in charge of practical events. When any of these Aboriginal evictions or denials of right take place the Liberal Minister who is supposedly the defender of the Aborigines does, like the House of Lords in Gilbert and Sullivan, nothing in particular and does it very . well. There seemed to be no ministerial concern from the Department of Aboriginal Affairs. We heard of no ministerial protection being given or no concern being expressed. The regulations were gazetted and. the duty to conduct an unnecessary clash was imposed upon the police of Canberra and upon the people who were in the tents. This proceeded from the extraordinary, assessment of a situation of great danger which was made by the Minister for the Interior and for knowledge of which we are indebted to the Northern Territory Legislative Council which gave publicity to his telegram.

Mr SPEAKER:

-Is the’.. “ motion seconded?

Mr Enderby:

– I second the motion and reserve my right to speak later…

Mr HUNT:
Minister- for the Interior · Gwydir · CP

– The first thing that I want to say in reply to the honourable , member for Fremantle (Mr Beazley)’ -.is, that- he based most of his argument upon what he regarded to be an extraordinary assessment I. had made of what could have, transpired on that Sunday, 30th July.. :We- can all make, our assessments and we;can all-have our hindsight, but we saw published in the Press on 26th July a statement by one of the Aboriginal leaders. Under, the headline Preparing for . Sharpeville’ this ..article appeared in one of the Canberra . newspapers: .’k

Aboriginal leaders last night were,; preparing for another Sharpeville’ following a . judge’s .rejection of an injunction to allow the Aboriginal, ‘embassy’ to be re-erected. They said ‘ a mass demonstration of ‘Aboriginals, students and trade unionists would be held on Sunday outside Parliament . House to re-establish the tent embassy.

Dr Everingham:

– You ought .to read about Sharpeville. - :.

Mr HUNT:

– I will tell the honourable member what happened at Sharpeville. On 26th March 1960 at Sharpeville -in South Africa there was a direct confrontation between black Africans and police,- leaving 67 people dead and 168 injured. It was against that background that I felt I had to return to Canberra to talk to people to ensure that we did not have the violence that was predicted by some people. I have read that the main thrust of the attack that has been upon me as the responsible Minister is related to the propriety of gazetting the amended Trespass on Commonwealth Lands Ordinance while Parliament was in recess. I remind the House that the Ordinance was made under the provisions of section 12 of the Seat of Government (Administration) Act. The Ordinance was designed by the Government to prohibit camping on unleased land in the city area of Canberra unless such land had been declared a camping area by the Minister for the Interior or unless a permit had been granted in relation to one of the special purposes identified in the Ordinance.

The honourable member for Fremantle quoted what one of our learned judges in Canberra has said but the legal advice that was available to the Government indicated that in order to protect unleased Commonwealth lands from camping, whether it be on median strips, nature strips or areas around Parliament House, the Ordinance itself would have to be amended. So acting on that advice the Government amended the Ordinance. The legislation does not restrict the traditional rights of freedom of speech or assembly or the rights of people to protest. This form of legislation gives powers similar to that which relates to the control of camping on what might be described as municipal land and is common throughout Australia. As honourable members wm recall, the so-called embassy was established on 26th January 1972, and legal advice given to the Government was that existing law did not satisfactorily cover the situation and that it was desirable to have specific provisions. In February 1972, hi answer to a question from the right honourable member for Higgins (Mr Gorton) atom the campers, I indicated that the people concerned were Aborigines demonstrating in a peaceful way for a cause in which they believed. But I said that for the future we would have to look at the Ordinance to ensure that the Parliament House lawns were reserved for their proper use and were not to be a place on which persons could camp indefinitely. The fundamental fact remains that the Government was faced with the situation in which any protest group or minority group, whether they be fascists, Croatians, unionists, pensioners, wool growers, wheat growers - you name it - could camp with impunity on the lawns outside this building or on unleased land in the city area of the national capital, Canberra. How could a responsible Government tolerate such a situation when a defect in the law had been exposed.

It is not a question of the Government taking action against the Aborigines; it is a question of the Government facing up to its responsibilities of preserving public places in Canberra for public use. Surely no group should have the right to pitch tents indiscriminately and to proclaim a cause for a lengthy period, thereby impeding the access of people to public areas. It was to give effect to that basic principle that the amendments to the Trespass on Commonwealth Lands Ordinance were drafted. It was not an easy exercise, because it was necessary to balance adequately the right of individuals against that of the public interest. On 11th May 1972 I stated to this House that the Government intended to bring in an Ordinance. I made it clear that the Ordinance would make it generally an offence for persons to camp on unleased land in the city area and would empower authorities to remove their possessions if they did not comply within a reasonable time with a direction to remove them. In my statement I stressed that the law would apply to the areas around Parliament House. An identical statement was made by Senator Cotton in the Senate and it is important to recall that not one member of the Opposition either in this House or in the Senate took the opportunity to challenge the Government’s intention or decision in this matter.

Mr Enderby:

– That is a lie.

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

– Order! The honourable member for the Australian Capital Territory will withdraw that remark.

Mr Enderby:

– I withdraw it, but what the Minister has said is not accurate.

Mr HUNT:

– The honourable members of the Opposition may have sat pat for ulterior motives, certainly for reasons best known to them; but nobody can deny that every member of the Opposition in both places had his opportunity to challenge the Government on its intention when I made a statement to this House. In accordance with the procedures of the Parliament I gave Parliament the opportunity publicly to debate the Government’s intention.

Mr Enderby:

– You did not.

Mr HUNT:

– I am sorry if I spoil the honourable member’s story. I remind the House that I was not under any obligation to make such a statement, although in the circumstances of this case I felt it was necessary to give every member of the Parliament a chance to voice his view before the Ordinance was made. At that time the camp bad been in existence for some 3 months during which time it had deteriorated significantly. Soon after the Parliament had been informed of the Government’s intentions I had the first of a number of discussions with representatives of the campers, the then spokesmen, Mr John Newfong, in particular. I spoke with other Aboriginal leaders, including Mr Joe MacGinness and Mr Chicka Dixon of the Federal Council of Aboriginal and Torres Strait Islanders. I also had discussions with the honourable member for Wills (Mr Bryant) and the honourable member for Brisbane (Mr Cross) about the removal of the embassy. During all these discussions I made it clear that the Government was firm in its intention to legislate to prevent people from pitching tents at will in the city area. In the course of these discussions we canvassed the possibility of a national representative group of Aborigines obtaining a more permanent and dignified presence in Canberra. I held firmly to the view that the continued presence of scruffy tents outside Parliament House was not serving either the interests of the Aboriginal people or the Parliament in a dignified way.

In accordance with practice, the amending ordinance was referred to the Australian Capital Advisory Council on 13th June, that is, about 5 weeks before the removal of the embassy. The member for the Australian Capital Territory was given a copy of the Ordinance on 1st June and I am told that he lost it but subsequently obtained another. The Ordinance was made in the normal way but before it became law a senior officer of the Australian Capital Territory Police Force visited the campers on 17th July. They were informed that the law would be introduced shortly and that it would require them to remove themselves and their tents from the lawns. The campers were provided with a copy of the proposed Ordinance and an explantion of its effect. The officer concerned gained the clear impression that they would comply with the law when it was introduced.

Indeed, on 18th July in the ‘Canberra News’, it was reported:

Staff at the Aboriginal ‘Embassy’ say that they will co-operate with the Australian Capital Territory police and move their camp on the lawns opposite Parliament House without violence.

In the same report the honourable member for the Australian Capital Territory was reported as saying that it was imperative in the interests of decency that no action be taken against the embassy on the lawns of Parliament House until the Parliament was in session. Perhaps this was the catalyst which caused the change of attitude. Indeed, in the ‘Canberra News’ a camp spokesman, Mr Ambrose Brown, said that they would not resist the police and members would maintain operations from an office in Canberra.

The ordinance was gazetted on 20th July 1972 and was publicly available at 10.30 a.m. on that date. Shortly after, the ACT police informed the campers that the law had been made and requested the campers to remove their tents from the lawns. It was at this point that there was a dramatic change of attitude. For the first time, the campers indicated to the police that they would not move voluntarily. It is significant that, whereas normally the so-called ‘embassy’ has been staffed by only one or two persons, on the date on which the Ordinance was gazetted the police were confronted by forty or more people in an organised demonstration. The police requested the demonstrators, comprising part Aborigines and Europeans, to permit them to remove the remaining tent. They were warned that if they did not do so they would be obstructing the police in the execution of their duty. The demonstrators made it clear that they had no intention of moving, and accordingly the police removed the tent. The Police Commis- sioner informed me that the resistance by the demonstrators was more excessive than at any previous demonstration in the ACT.

In an effort to avoid further confrontation and violence, officers of my Department, including the Police Commissioner, met with representatives of the demonstrators on Sunday morning, 23rd July. An offer was made to assist the accommodation problems of those campers involved in legal proceedings to test the validity of the Ordinance. This offer was not taken up. While these discussions were in progress it was learned that a further demonstration had already commenced and that a body of demonstrators was marching from the Australian National University to Parliament House. On their arrival at Parliament House the demonstrators attempted to erect a tent in the area previously occupied by the campers. The police advised them that any attempt to re-erect the tent would be in contravention of the existing law. This advice was ignored and they elected the tent. The police dismantled the tent after the demonstrators had ignored the repeated police requests.

We then move on to a further demonstration on 30th July. It was reported that plans were being made for a much larger demonstration on 30th July. Arrangements were made for busloads of demonstrators to converge on Canberra from many parts of Australia. Militant left wing unions, including the New South Wales branch of the Builders Labourers Union were planning to become involved. Indeed, it was reported that the so-called ‘front line troops’ of the Builders Labourers Union - thugs and bikies - were also planning to participate, lt was against this background that on 26th July I met with representatives of the demonstrators and discussed with them a more dignified permanent presence in the national capital for some truly representative Aboriginal group. (Extension of time granted.) I would like to thank the honourable member for Fremantle for his courtesy in moving for an extension of time. However, I made it clear that, in the terms of the law, the tents could not be erected outside Parliament House on unleased land in the city area. Further conferences took place on 28th July between officers of my Department and representatives of the demonstrators then in Canberra.

An endeavour was made to persuade the demonstrators to call off the movement of interstate professional demonstrators to Canberra. It was agreed that the Commonwealth would bring 9 leaders nominated by the Aborigines to Canberra to discuss the matter with the Ministers.

On 29th July my colleagues, the Minister for Environment, Aborigines and the Arts (Mr Howson) and the Minister for Education and Science (Mr Malcolm Fraser), the Chairman of the Council for Aboriginal Affairs (Dr Coombs) and officers of my Department met with Aboriginal leaders in Canberra. The discussions lasted 2 hours. While the discussions were taking place the demonstrators were converging on Canberra from a number of centres throughout Australia. For the record, I am pleased to say that, in spite of attempts by radical groups to pressure Aborigines from my own home town of Moree, they refused to be associated with the activities of those who were hell-bent on creating further violence outside Parliament House.

On Sunday, 30th July, there was a large demonstration outside Parliament House involving 2,000 demonstrators. Every effort was made to avoid serious risk of violence and injury, and although the police were in strength on this occasion they made no effort to interfere with or to prevent what was recognised as the temporary erection of a tent on the lawns as a symbolic gesture. At the invitation and with the cooperation of the demonstrators the tent was removed in the afternoon. Although all the seeds of violence were present on that Sunday afternoon, the police behaved in an exemplary fashion while under considerable pressure. The majority of the Aboriginal leaders sought to restrain, and in fact succeeded in restraining, the more radical elements. Indeed, I would like to quote from a letter I have received from the Australian Capita] Territory Council of Civil Liberties. The Secretary wrote:

Dear Sir,

It is my pleasure to write to you on behalf of the Canberra branch of the Council for Civil Liberties to offer our support to, and appreciation of, your recent attempts to resolve the problem of the Aboriginal Embassy in Canberra.

May I also offer through you our congratulations to Mr R. A. Wilson, Commissioner of Police, and to the members of his force for their careful handling of the demonstration in front of

Parliament House last Sunday, 30th July 1972. My council feels that the discreet way in which the police p’.ayed their part contributed very largely to the demonstration proceeding in a peaceful and orderly fashion, despite the fact that throughout there was always a very serious possibility that violence might erupt.

While the opinions of my council and your colleagues in the Government may differ widely as to the desirability and conduct of demonstrations of the type that took place last Sunday, I am sure that we will all agree that the events of last Sunday went a long way to strengthening the democratic processes which we are all proud of in Australia.

Yours sincerely, H. M. BOOT, Secretary

As Minister for the Interior executing a Government decision, I am confident that I do not deserve to be the object of a motion of censure in this House. I repeat that the Government decided to amend the Ordinance to prevent people from camping at will on unleased Gommonealth land in the city area. Notice was given to this effect in this Parliament on 11th May. No Opposition member chose to debate the issue on that day. I repeatedly stated that the Government was firm in its intention. I had numerous discussions with the Aborigines concerned. I stressed that they had had a fair go. They had been there for over 6 months and they had made their point. They were not bringing dignity to the Parliament or to themselves in continuing to camp in the way they were. The camp had degenerated into a squabbling, untidy and insanitary spectacle. I sought to find a more dignified presence for the Aborigines in the Australian Capital Territory.

I believe that the whole situation surrounding this affair has been influenced by the political objectives of certain sections of the Australian Labor Party. I do not underestimate their involvement in what must surely be one of the most mischievous plots of our time. The Government has a great sympathy with the problems of the Aboriginal people but we have to remember what the campers were demanding. For the purposes of the record what the campers were demanding was reported in the ‘Sydney Morning Herald’ on 7lh February 1972, as follows:

Fufl State rights for the Northern Territory under Aboriginal ownership and all titles for mineral ownership. All other reserves and settlements in Australia with their titles to mining and mineral rights. Mineral and mining rights in certain towns and cities. Preservation of all sacred Abor° iginal sites included in parts 1 and 2. Compensation of an initial payment of $6 billion for all other land throughout Australia and a percentage of the gross national product each year.

In a debate in this House on 23rd February 1972 I asked the Leader of the Opposition (Mr Whitlam) what was the Labor Party policy in relation to the recognition of traditional land rights outside reserves. I asked whether the Labor Party believed that compensation should be paid to Aborigines who claim traditional land outside reserves. As far as I know there has been no reply. In exercising my responsibility as the Minister for the Interior in this Government 1 regret that violence did occur and that injuries were sustained. I regret that outside stirrers succeeded in their endeavours, but I make no apologies for the efforts I made to administer the law and to prevent the violence which occurred on Sunday, 30th July 1972.

Mr DEPUTY SPEAKER (Mr Lucock:

– Order! The Minister’s time has expired.

Mr ENDERBY:
Australian Capital Territory

– Towards the end of the speech made by the Minister for the Interior (Mr Hunt) we heard the true opposition or argument from the Government as to why the Aboriginal embassy was there. It had nothing to do with tents or with people camping on Commonwealth Crown Land, The real opposition from the Government, the real thing that offended it, the real thing it could not stomach, was the reminder out there by those 2 flags, the sign ‘Aboriginal Embassy’ in a symbolic form, and the tents, that these people claim land rights - something that was taken from them many years ago. That is a political thing, and towards the end of his speech the Minister reiterated it and came back to it; it was the point on which he wanted to finish. He said that the Aborigines were there for political reasons; that they were there not just to live in a tent but to make a political point; and that they were exercising a right to assemble. This statement came right out of the Minister’s mouth. There are a number of reasons why this House should not have confidence in the Minister for the Interior. It is quite a pity that there are almost no Liberals present in the chamber.

Dr Gun:

– Have a look at those that are.

Mr ENDERBY:

– Yes, have a look at those 2 or 3 - with one notable exception. At the moment the Government benches consist almost entirely of members of the Australian Country Party. Where are the Liberals who espouse Liberal principles? Unfortunately 15 minutes is not a long enough time in which to cover all the points. The Minister said that the Aboriginal embassy came there on Australia Day. Rather he omitted to say that, but it was Australia Day. The Aborigines made it clear that they hoped to stay there until Parliament began sitting in order to make their point - the Minister says it was a political point - concerning a claim for land rights. The Government kept saying: ‘We will not tolerate their presence’. Naturally, like any human being, the Aborigines said: We will not be told not to do something which we want to do, which is completely legal and which we are allowed to do’. They said that they would stay on until President Suharto from Indonesia came. Again, they were on the verge of going and again the Government came along and said: ‘You will go’. It was at that time that the Press began to play it up.

Because the Minister for the Interior has made so much of the lack of opposition, as he calls it, from the Labor Party on the 11th May, let me give some examples of the opposition that was made. In March I sent a telegram to the Minister saying that I personally opposed any move to move the Aboriginal embassy and that if the Minister was going across to the embassy I would like to go with him. But I received no answer to or no acknowledgment of the telegram I sent on 6th March this year. Towards the end of March the Labor Party members on the Opposition benches produced to this Parliament 10 or 12 petitions from my constituents - people who live in the Australian Capital Territory - protesting at the reported moves that the Government was making to move the embassy.

Indeed, I remind the House that on one occasion I took the unusual step of moving that the petition be printed. The motion was debated in this House in one sense - that I gave the reasons why the petition should be printed. It contained the expression of view of the people in Canberra, that the Government was up to something horrible and that it should be criticised for being up to it. I said that the petition should be given the widest possible distribution, that it should get into the books and that the world should know what this Government was up to. No-one on the Government benches spoke against the motion and it was carried unanimously.

Opposition to what the Government was up to continued. The Minister will recall that on 11th May 1972, when he said that there was no opposition to the Government’s move - 1 know he heard it because I saw his face when he read the statement out - I shouted: ‘Shame! You frightened little men’. I repeat what I said: ‘Shame! You frightened little men’. It was widely reported in the Canberra newspapers on the following day. If that is not opposition to the Minister’s point, I do not know what it is.

The Minister said m his statement that it was the Government’s intention to bring in an ordinance which would fill a need in relation to the law in regard to trespass on Commonwealth land in Canberra. I do not really see any reference to Aborigines in that statement. He said finally that adequate public notice would be given of the coming into effect of the ordinance. I ‘ repeat, he said that adequate public notice would be given of the coming into effect of the Ordinance. What would any Opposition member want to do when told that an ordinance dealing with trespass on land could come in? The statement did not use the words ‘Aborigine’, ‘tent’ or any relevant words. …’.

I remind the Minister, when it comes to a question of his credibility, that on television he said that when the ordinance came in the Aborigines would be given a couple of weeks - a reasonable time–within which to get off the land. I heard him say it. We moved towards the end of the parliamentary session and the Minister- I ‘ suppose it could be argued that he -reads ‘ the Canberra newspapers as he is responsible for the administration of Canberra- ‘ will remember a Press statement I released which was given some publicity at ‘the time. It said that this Government would not introduce any ordinance dealing’’ with the removal of the embassy while Parliament remained in session; that it’ would not be game to; that it would wait until the parliamentarians went back to Perth,

Brisbane, Townsville and Darwin - not that Darwin matters much in this context. The statement said that when they went back to the various parts of Australia the Government would sneak this ordinance in like a thief in the night. Is that not exactly what the Government did?

Let me take the Ministery up to 20th July 1972. Rumours ran around this city that the ‘Gazette’ coming out on Thursday, 20th July, would contain a gazettal about the ordinance. On Thursday morning, 20th July, 1 had the officers in the legislative research section of this Parliament - very capable people - trying to tell me for an hour whether that ordinance had been gazetted. They could not find out. Do honourable members know how I found out? I was in my city office at the time and I wanted to come across to Parliament House. I got the information from an inspector of the ACT police force. In the end he said: ‘If you want to know what is going on, look out your window*. He thought that I was in my office in Parliament House. When I arrived at the Aboriginal embassy the honourable member for Wills (Mr Bryant) was there. Do honourable members know what I found? The police had dismantled the tents and there were-

Mr Sinclair:

– Did you find the ordinance that was given to you?

Mr ENDERBY:

– That was never lost. You need not be taken away by that. Let me tell honourable members what I saw, because the Minister for the Interior had not been near the place. He talks about radical left wing elements. I saw a group of Aborigines and white people linked arm in arm around the remaining tent which carried the flag and the sign ‘Aboriginal Embassy’. I recognised some of the people. I recognised the Reverend Jim Udy, a very respectable clergyman in Canberra, linked arm in arm with the Aborigines. I recognised the Reverend George Garnsey, another very respected and responsible clergyman from Canberra, linked arm in arm with the Aborigines. I recognised Bruce Kent, another responsible, recognised and well known man in Canberra, linked arm in arm with the Aborigines. I saw no-one who could be called irresponsible or within any mythical conspiratorial nonsense that the Minister goes on with. At that stage the police, under the action and directions of the Minister, were proceeding to whale in. They were sooled on by the Minister, if you like, although he was not game to be there, and were pulling them away. I saw violence.

This is why this House should have no confidence in the Minister. Until that time that demonstration had been the most successful peaceful symbol of the Aboriginal claim for land rights that one could possibly imagine. The Embassy had been there for 6 months and had attracted tourists. The children of tourists had gone to the Embassy and collected signatures and Aboriginal literature. The Embassy had been a peaceful symbol of the Aboriginals’ claim for land rights. What did the Minister and the Government he represents do? He converted that peaceful symbol into a symbol of violence. The Minister has come along here and hypocritically made reference to Sharpeville. He talked about events 4 or 5 days later when there was an explosive situation. The peaceful symbol had been destroyed. I have enormous respect for the Australian Capital Territory police, although no-one has fought the police more than I have in the courts in previous days. But the police had been sooled on to these people by this Minister.

Mr Hunt:

– Oh, rot.

Mr ENDERBY:

– Put any other different word to it. There were broken limbs and skin was torn. There was violence. What else does one call it? I have spoken to some of the officers concerned. The police were deliberately disarmed. I will tell honourable members this: On the second time round when the 2,000 people assembled, the Aborigines searched each other - this is a measure of their responsibility - to ensure that there would be no arms of any sort on any of them if anything got out of control. There is a measure of responsibility for you. On that occasion we saw violence in this town that was completely unnecessary - violence that had been created and provoked by this Minister.

May I give another example? That afternoon I received a message that some of the Aborigines and some of the gentlemen to whom I have already referred had gone to the police station to lend moral support to the people who had been arrested as a result of the fracas and who were being released on bail. I went across to the police station. There I saw the real measure of what this Minister has brought about, this transformation of a peaceful symbol into a violent symbol. I saw outside of the door of the police station 20 or 30 constables - not the 300 who had been there before. They were not standing to attention but were standing at ease. Confronting them was a very angry group of people made up of demonstrators as well as the wives and supporters of the demonstrators. There was one very young Aboriginal lady who was hysterical. She claimed that her husband had had his head bashed in, or something like that, by a policeman. These policemen are my constituents as much as are the people who go there to demonstrate. The Minister has brought about this antagonism between them. This is why I get angry. The demonstrators quite naturally were taking out their anger on the police. The people who were speaking to the demonstrators had their backs to the line of police. I refused to do that because I take the view that in this situation the police should know what you have done to them. They should know the dirty, filthy job that the Minister has given them to do.

Mr Anthony:

– Cut it out.

Mr ENDERBY:

– I am not cutting it out. I am trying to tell you what the situation was. The Government nearly had a Sharpeville incident. If the moderate speakers had not poured some oil on these waters and put that fire out there would have been trouble that afternoon and this Minister could have been deliberately and directly held responsible.

Let me take the story one step further, and I appreciate that my time is limited. Let me move to what happened during the following week. The responsible editor of one of Canberra’s newspapers came to me towards the end of the week - about Thursday. He was not looking for a story. He came because of the responsible reports he had heard that an explosive situation was going to arise in Canberra and that the Government was doing nothing about it - it was just washing its hands like Pontius Pilate.

The Minister will remember these events. I sent him a telegram because all of the reports said that he and his colleague - I suppose that one can call the Minister for the Environment, Aborigines and the Arts (Mr Howson) a colleague - were in Darwin or somewhere doing something else probably quite irrelevant, given the situation that had arisen in Canberra. The reports had it that the Minister was trying to bribe off the demonstrators with the offer of Beauchamp House. After all, we remember that the thread running through the Minister’s speeches has been that ‘perhaps they do not want land rights; perhaps they want a club or something like that in Canberra’; or ‘Perhaps if I offer them something they will go away and they will not trouble me with their unpleasant, embarrassing political demands’. So there was talk about Beauchamp House. I had a telegram from the Assistant Secretary, Mr Ballard, on the point. Nothing was done. As the .Minister points out, there was widespread support all over this country for the Aboriginals because of the insult that this Government had laid at the door of the Aboriginal cause. Truckloads of people did come in. There was an explosive situation.

On the Sunday when the 300-odd police were outside Parliament House every responsible and respected citizen : of Canberra, also was there. Mr Jim Pead of the Australian Capital Territory Advisory Council was there doing his best to try to talk to the responsible officers in the Department and the police. There was Professor Hal Wootten down from Sydney who was doing his best. I was there, as well as many of the members of the Advisory Council, doing our best. Where was this Minister? He was nowhere to be seen. We had this explosive situation.

Mr Duthie:

– Perhaps it is as well he was not there.

Mr ENDERBY:

– That could be so. There was anger - terrible anger. But to their credit, the police kept their cool. When the demonstrators arrived marching, there was then a strong element of what I suppose loosely could be called black power people. The clenched fist salute was given and chants for land rights could be heard. This type of activity was not present before this Minister put the police in to move the Embassy away in the way he did. A peaceful demonstration had been converted to a symbol of violence which will now be associated forever with this Government and with the Aborigine’s cause. The demonstrators sat down and they were addressed by their own people.

Mr DEPUTY SPEAKER (Mr Lucock:

– Order! The honourable member’s time has expired. (Extension of time granted.)

Mr ENDERBY:

– I am indebted to the House, Mr Deputy Speaker. The people sat down. Perhaps there were 2,000 of them. Having marched all the way from the Australian National University they heard speeches. Not one word of violence was uttered. The Minister talks about trouble makers and the radicals. I was there and I did not hear or see any of them. The Minister was not there. I say to the Deputy Prime Minister (Mr Anthony) that they played a guitar and sang songs. They talked about the cause of Aborigines and the cause of land rights. I spoke to the Commissioner of Police who was doing his best because he did not quite know what had happened. I spoke to Hal Wootten, who said - and I am sure that he will not mind me saying so in this context - that all his efforts had left him with a feeling of frustration. He said that he could get no sense out of the Government It was as though they had turned their backs, closed their eyes and said: ‘We do not know what is going to happen; we have no way of controlling it; we will just walk away from the thing*. Anyone who was there on that day will confirm what I am saying.

As the Minister has said, word was conveyed to Mr Wilson, the Commissioner of Police, that the demonstrators would march back to the Australian National University. They did. He was told that a token force would remain within the tent but that there would be no trouble. He was told that the police could remove the tent. The police did. They found 5 or 6 men in the tent with their fingers raised in the Churchill V for Victory sign. Here was your violence. When the tent was taken away from around them they held up a symbolic piece of canvas, walked to where the police line was, threw it down and walked away. If that is not self-discipline, I do not know what is. What hypocrisy it was for ‘the Minister to suggest in the letter which he wrote to me on 4th August that all of the credit for the absence of violence goes to the Australian Capital Territory police. Full marks to the Australian Capital Territory police. But I say full marks also to those demonstrators and no marks at all for the Minister or for this Government whom he represents. There are many reasons why this House should have no confidence in the Minister. The first is his dishonesty about the strong suggestion in the television programme when he said that he knew that the Ordinance was to be gazetted at a time when the Parliament would not be sitting. I will read the Minister’s words to him if he will just listen and not wander away. He will remember that shortly after the violent removal of the tent on 20th July he was interviewed on television and it was put to him: ‘Would you rather that this would have happened when the Parliament was sitting?’ The Minister had been referring to how he had announced the intention to Parliament on 11th May. I already have put to the House what he said on that day - that adequate public notice would be given. Ten minutes public notice was given. When the Minister was talking to this interviewer about how on 11th May he had made an announcement to the Parliament the questioner asked: ‘Would you rather that this would have happened when the Parliament was sitting?’ The Minister’s answer was: Well, I knew that this was not going to happen and this is why I felt obliged to inform the Parliament of the Government’s decision on 11th May’.

So on 11th May he knew he was going to wait until after the politicians had dispersed before slipping this Ordinance through in the way in which he did. One might ask why he waited. I suggest that it was because he could not face up to it at that stage and he misled the Parliament when he said that adequate notice would be given.

I have told the House that I could not find out whether the Ordinance had been gazetted on that Thursday morning. The honourable member for Wills could not find out; I could not find out. I got the information from an inspector of police who was not unsympathetic to the cause of the demonstrators. In his interview the Minister said: ‘it is interesting to note not one member of the Labor Party, the Opposition, at that time, from either the House of Representatives or the Senate objected to the Government’s intention’. What rubbish! I have already referred to the long history of opposition, the petitions that have been presented to the Parliament, the telegrams sent to the Minister, the Press statements dealing with the subject and finally, to my shouting of: ‘Shame! You frightened little men’. That is exactly what honourable members opposite are. I hurled those words across the chamber at the Minister. He heard them because he looked at me when he heard them.

There should be no confidence in the Minister because of the dishonesty, the lack of tolerance and the hypocrisy underlying the whole situation and, finally, because of sheer incompetence. On this point I should like to conclude by reading what Mr Justice Fox said in dealing with the challenge made to the legality of this Ordinance. I have a copy of the transcript of the judgment. The learned judge - one would think quite an objective, independent person - at page 24 of the transcript, referring to this way of making laws, particularly laws which affect the lives of people, but laws generally in Canberra, said:

You would not take long to convince me that section 12-

That is the section of the Seat of Government (Administration) Act under which this type of legislation is enacted - is an unsatisfactory scheme of legislation. There are plenty of other examples of the same kind of comment from the judge in his judgment. At page 96 of the transcript he said: lt seems to me on the material presently before me that the position was that the Embassy and those constituting the Embassy could lawfully have been required to leave land under the principles of the general law and without the aid of the ordinance. As I see the matter if it in fact had been necessary the responsible authorities could have applied to this court for appropriate orders to achieve their desired results.

The Minister has spoken about the legal advice he was given. But I remind the Minister that the learned judge said:

As I understand him, counsel who appears for both the Minister and the Commissioner of Police does not dispute that some such course was available under the general law.

In saying that the judge was referring to the Minister’s own counsel who appeared in the Supreme Court of the Australian Capital Territory and who said that the embassy could have been removed under the existing law without this Ordinance. I ask the Minister: ‘Where is your legal advice now?’ Is that not incompetence? For these reasons I support the motion.

Mr HOWSON:
Minister for the Environment, Aborigines and the Arts · Casey · LP

– It is a pity that the important issues of this debate which were set out by the honourable member for Fremantle (Mr Beazley) have been obscured by that hysterical outburst we have just witnessed from the honourable member for the Australian Capital Territory (Mr Enderby). The honourable member threw, across the floor of this House, a number of wild accusations which are completely irrelevant to the main issues which we should be discussing. I intend to deal with only one of them, namely, the accusation that the police of the Australian Capital Territory were sooled on by the Minister for the Interior (Mr Hunt). The honourable member should know quite well that the responsibility for administering the law in the Australian Capital Territory lies solely with the police. In this matter . the police were carrying out their duties and any thought that a Minister was sooling on the police I think needs to be scotched right at the start! This is an accusation that the honourable member should retract if he has any decency.

I think there are 2 issues that need to be examined. They were raised by the. honourable member for Fremantle. The first concerns the use of the lawns in front of Parliament House and the second is the question of protest by Aboriginal people here and in other parts of Australia’. The first involves the responsibility of the Minister for the Interior and is the subject of this no confidence motion.’ AfteV what we have heard from the Minister for the Interior I think that this House should have every confidence in him for ,the way in which, in a very difficult situation,, he has acted with full integrity and full, probity. He has from me and all members on this side of the House full confidence in what he has undertaken, namely, the maintaining of the law in respect of the use of the lawns of Parliament House.

The other matter to which I think I should direct my attention concerns protests and the needs and aspirations of the Aboriginal people and the aid that this Commonwealth Government should be giving to them at this stage of our history. The honourable member for Fremantle knows full well that he, the hononourable member for Macquarie (Mr Luchetti), many other honourable members and I were present during the survey carried out in 1961 from which we saw that there is this socio-economic dilemma of ethnic minority groups as part of a world-wide phenomenon. It is not something for which any of us can prescribe easy solutions, but what we have clearly stated as a Commonwealth Government is that we have an objective towards which we are moving, namely, to create in Australia a single society while at the same time recognising the disparate history of ethnic, cultural and spiritual characteristics of the Australian community. But we do wish to move towards one single society. That is the aim of the Government and it is towards that aim that I think we should address ourselves.

One thing that I have been endeavouring to do as Minister for the Environment, Aborigines and the Arts is to improve the dialogue between the Government and the Aboriginal people. For too long there have been various solutions and slogans, and socalled representatives of the Aboriginal people, both European and Aboriginal, putting forward their views. However, it has been difficult at any one time to assess what are the real needs of Aboriginal people in Australia at the present time and to determine how we will achieve a degree of integration into the general society in which we live? The needs and the problems are not uniform throughout Australia. The needs of people in the capital cities, the people who have moved out of their old Aboriginal situations into European situations in the cities, are obviously very different from the needs of people still in the tribal areas in the north. So, it has been for this purpose that for the last few months I have been endeavouring to call together a conference of as widely rep resentative groups of Aboriginal people as possible in order to start that dialogue between the Government and the Aborigines. It has not been easy. For some time I asked the Council for Aboriginal Affairs to seek the best available means of calling together that national conference. But we succeeded and last week this conference was held. I think it is known that that conference was free to ask advice, and to receive submissions, from any source it wished to consult. It was open to the Press and its deliberations received wide publicity. I have received from that conference a series of 39 resolutions and I think the House knows that I am in the process of considering them. I hope and believe that that conference is the embryo of a continuing process of dialogue and meaningful discussion between the Government and the Aboriginal people. That is something which has not existed in the past.

Having stated how I believe we shall be able to understand these needs more closely, I now wish to inform the House of what has taken place while I have been Minister for the Environment, Aborigines and the Arts. In spite of the slighting remarks of the honourable member for Fremantle, I believe a very great deal has been done over the past few months.

Mr Beazley:

– I spoke about your actions in a crisis, not your actions as a Minister.

Mr HOWSON:

– Let me deal with my actions as a Minister. As these important matters have been raised let me refer to the important decisions we have made respecting land for Aborigines. Three important moves were announced by the Prime Minister (Mr McMahon) on 26th January. The first dealt with the creation of general purpose leases, leases to apply to land on reserves in the Northern Territory, and leases to be granted to Aboriginal communities which have the intention and ability to develop the land on which they are living for economic and social purposes, ensuring, at the same time, that those applications do not interfere with other groups which may be living close to them at that time. The important thing is that there has been no change of policy for those people living on reserves in the

Northern Territory who wish to continue with the present use that they are making of their land. That new policy was announced for those who wish to make new uses of the land. Many groups already have applied for these leases and I believe, therefore, that this first policy is fulfilling a need felt by the Aboriginal people living on reserves at this time, particularly in the Northern Territory.

Secondly, for those people living off reserves, the Government announced its policy of purchasing areas of land, pastoral properties, as they become available for the use of Aboriginal people. It is well known that I am in the process of negotiating for a number of these properties, both in the Northern Territory and in the States. We have appropriated $13m to underwrite this programme over the 5-year period.

Mr Foster:

– 1 rise to a point of order, Mr Deputy Speaker. I think that the Minister for the Environment, Aborigines and the Arts ought to be informed by the Chair of the subject matter that is now before the House. The matter with which he has been dealing is one that we on this s<ide of the chamber would welcome as the subject of a general debate, namely, the administration of Aborigines by his Department. However, on the issue that is before us he is particularly wide of the mark.

Mr DEPUTY SPEAKER (Mr Lucock:

– There is no substance in the point of order.

Mr HOWSON:

– My remarks relate to the purpose of the protests outside the House, the matter which we are discussing, and are directed to the use of land by Aboriginal people. Therefore it is right that the policy of the Government on this matter should be widely disseminated. 1 wish also to deal with Aboriginal sacred sites and sites of special significance because this goes to the heart of the matter. The protests related to the question of land rights and it is that policy that we are debating. Therefore I think the House should be cognisant of it. The Government has said that it shall endeavour as soon as possible to preserve and delineate for all time the use of those special sacred sites for Aboriginal people. This was part of the policy announced on 26th January. I asked the Institute of Aboriginal Studies to convene a gathering in order to find nut best-

Mr Foster:

– I rise again to a point of order, and I draw your attention, Mr Deputy Speaker, to the Standing Orders. This House is debating a motion of no confidence in the Minister for the Interior because of his handling of the affair of the removal of the Aboriginal ‘Embassy’ from the lawns in front of Parliament House. My point of order is that at no time during his address to the House has the Minister for the Environment. Aborigines and the Arts mentioned the subject matter before us. Why do you not insist that he do so?

Mr DEPUTY SPEAKER (Mr Lucock:

– Order! I remind the honourable member for Sturt that earlier had he been listening he would have heard the honourable member for the Australian Capital Territory mention the fact that one of the points involved in this matter was the land rights of the Australian Aborigines.

Mr Foster:

– It is a simple-

Mr DEPUTY SPEAKER:

-Order! The honourable member for Sturt will cease interjecting. This is the very point that is being dealt with now by the Minister for the Environment, Aborigines and the Arts.

Mr HOWSON:

– If land rights is one of the matters that has been the subject of protest by a group of people on the lawns outside Parliament House then it is hi order, and more than in order, for the Government to make clear what progress it has made in delineating and dealing with the subject of land rights for Aboriginal people, particularly as they affect the sacred sites that have been of so much importance during the history of this embassy. We have been dealing with some of the major factors about which there have been protests in the last few months. Having done that, it is right therefore that these policies should be clearly set out in a debate on the subject of confidence in the Minister for the Interior.

Let me make this clear: If there is to be protest about the way in which the Government has been handling the affairs of the Aboriginal people, particularly since the Government took over control and responsibility for the Aboriginal people as a result of the referendum in 1967, then it is right that the House and the Australian people should know how much we have done. In the last year governments in Australia spent $44m of the taxpayers funds on behalf of the 140,000 Aboriginal people in Australia. That has happened since we took over this responsibility in 1968, and before the present financial year the Commonwealth Government had allocated $68m for this purpose. Much of this money has been spent on helping with housing, in providing hostels and in providing employment, particularly rural employment. So much has been done during the past few years. We have gone out of our way to improve the education of the Aboriginal people. Today there are 4,000 scholarships in use by Aborigines throughout Australia. In the Northern Territory alone 75 per cent of eligible Aboriginal children attend pre-schools, 90 per cent attend primary school and 70 per cent attend secondary school. A tremendous amount of development has occurred since the Commonwealth took over these responsibilities.

In addition there are the capital funds with which we have helped people in private enterprise. Through the provision of grants totalling over $2.25m new enterprises are being carried out for the Aboriginal people. I make it clear that the Government has done a tremendous amount for the Aboriginal people. In spite of the protests I believe that our record is clear and that we have acted responsibly. We. aim to do more but we shall not be able to state a lot more of what we are doing if a lot of these hysterical red herrings are thrown about this House in this way at this time.

The real issue today is: Has the Minister for the Interior acted responsibly and has he justified the confidence of the House? I believe that not only has he the confidence of this House but also, for what we have been doing in the field of the Aboriginal people, he should receive the plaudits of this House and of the people of Australia.

Mr CROSS:
Brisbane

– I support the motion of no confidence in the Minister for the Interior (Mr Hunt) for a whole range of reasons which I propose to place before the Parliament, although the time allowed for us is somewhat limited. The Minister for the Environment, Aborigines and the Arts (Mr Howson) introduced the general question of Aboriginal administration. Before getting on to the major subject of debate I would like to say that notwithstanding the fact that some things are being done by the Commonwealth Government, the Australian Labor Party has held all along that what we are doing now can be summed up as being too little; that it is not being done after proper and regular consultation with the Aboriginal people and after considering the priorities that they themselves help to determine, and that it is wrongly motivated. I was interested in the comment made by the Minister for the Environment, Aborigines and the Arts about the Government’s aim to create a single society in Australia. I do not quite know what that means. I suppose it is the logical follow through from a policy of assimilation. While we all recognise that most of the Aboriginal people of Australia will probably choose to be assimilated into our society, as a great number of them have, the Labor Party recognises the right of those Aborigines who choose to stay in their own communities to do so.

We look with interest to the 39 resolutions that came out of the conference last week. I was interested to see that the Minister did not quote one of those conference resolutions that actually referred to the Aboriginal embassy. That brings us back to square one. The closing remarks of the Minister for the Interior were that this embassy and various things associated with it had served the political objectives of certain sections of the Labor Party. What was the Aboriginal embassy? The Aboriginal embassy arose out of an initiative of some young people associated with the Aboriginal legal service at Redfern in Sydney. It was an expression of their frustration with the failure of this Government and other governments throughout Australia to acknowledge the legitimate land rights of the Aboriginal people. It is well known that the government in this country has never acknowledged the land rights of the Aborigines in the way in which the land rights of the Red Indians of Canada and the United States of America and the land rights of the indigenous populations of South America and other places were acknowledged by the respective colonial governments. It was an Aboriginal initiative.

It has been said that the embassy was not a very presentable sight. One has to realise that it was an Aboriginal initiative. It was situated in tents which the Aborigines could afford to buy, to erect and to maintain. It was a modest expression. But the important question is what it meant to the Aboriginal people of Australia. It was a symbol of their fight for land rights. It was a protest against the failure of this Government to understand what land means to the Australian Aborigines. One can go back to the Boyer lectures by Professor Stanner a few years ago. He explained this probably better than any other person has explained it. It was a protest at the failure of the Government to meet these needs. The Minister for the Environment, Aborigines and the Arts spoke about the Government’s plans. One has to realise the great frustrations that occur when one sees the shemozzle over a situation like that of Everard Park where there was a difference between the Office of Aboriginal Affairs and the Department of the Interior as to the actual form of title the land would take. These are the things that frustrate the Aborigines, as they frustrate many people on this side of the Parliament.

There has been a continued failure of effective consultation. One of the things that emerged out of this confrontation was that Ministers of the Crown really do not understand the wishes, the aims and the aspirations of the Aboriginal people. When Aborigines stand up to fight for something it is immediately suspected that they are being manipulated by other people. That is the suggestion that comes through straightaway. Having a conference from time to time every year or two is a hollow gesture. There needs to be effective consultation at a more local level. There needs to be more staff in the Office of Aboriginal Affairs and these people need to be better supported. There is a major failure in the consultative process. I am not attacking the officers of the Office of Aboriginal Affairs who do this. I am speaking from the Aborigines’ point of view. They sit down and talk to these people. They know that the liaison officers go back to Canberra and put in a report. Then there are interminable delays brought about by the bureaucracy. Eventually the Aborigines may get something, or they may get nothing. Consider the point of view of members of an Aboriginal committee sitting around a table in some part of Australia. Their hopes are raised. They put up a case. They get very little, and sometimes nothing at all.

Let us look at the people who were at the conference. The Minister said that there were negotiations with a range of people. He mentioned Joe McGinness. He mentioned the honourable member for Wills (Mr Bryant) and myself. It is true that we approached the Minister to see whether we could come out with some negotiated settlement or arrangement to give the Aboriginal people a lobby in Canberra. Those negotiations were frustrated when Cabinet decided, instead of allowing this to proceed through some peaceful process of negotiation, to have a confrontation. Cabinet, at the request of the Minister for the Interior, made a decision that the Aboriginal embassy would go. How could the Federal Council for the Advancement of Aborigines and Torres Strait Islanders or any other Aboriginal organisation continue to negotiate under those circumstances? FCAATSI would have been accused by every young militant Aboriginal in Australia of selling out the cause of Aboriginal land rights for the lease of land in Canberra. That is looking at it from the Aboriginal point of view.

Let us consider the people who were there. A small group of students came. There was a great turnover of people at the Aboriginal embassy. It was a very modest protest but it became a major symbol in the eyes of the Aboriginal people. The very attractive colour photograph on the front page of the last edition of ‘Identity’, the publication of the Aboriginal Publications Foundation, featured the Aboriginal Embassy as a symbol of the aspirations of the Aboriginal people. The protest was winding down. The Government made the protest a more effective protest by its own precipitate action. Then young Aboriginal people and many young people who were not Aboriginals came to support the Aboriginal Embassy. I had some discussions with a group of young people at the University of Queensland. I went out there for another purpose - to talk about the Budget, as a matter of fact, real or imaginary. Some of these young people said: ‘We are going to Canberra. Are you coming?’ I explained that I was not going. They said they were going to Canberra to support the Aboriginal cause. I said: ‘By all means support the Aboriginal cause, but we do not want violence.’ They said: ‘We have been making decisions for the Aboriginal people of this country for a long time. We are going down on the basis that the decision on what happens down there will be made by a black caucus. We are going to let the Aboriginal people make their own decisions.’ Many young people came from all parts of Australia with that point of view in mind.

I would like to repudiate the suggestion that anyone on this side of the House had a vested interest in stirring up violence. Not only from the point of view of the Aboriginal people of Australia but also from the aspect of Australia’s standing in the eyes of the world, we all had a vested interest in seeing that there was a minimum of violence or no violence at all. I know what the honourable member for Wills and I did in talking to people from Aboriginal organisations in various parts of Australia. There was similar action by the Federal Council for the Advancement of Aborigines and Torres Strait Islanders. Noone opposed a demonstration in Canberra. No-one opposed a peaceful demonstration. All of us would have supported it but none of us would have supported violence. We are concerned about this situation for a number of reasons. One is the obvious failure, of the Minister for the. Interior and his colleagues to understand the aspirations of the Aboriginal people. The Minister carries the burden of responsibility for the Prime Minister, the Cabinet and the Minister for the Environment, Aborigines and the Arts. Other reasons are the obvious, complete failure by the Government to recognise the just claims for land rights and the hollow gestures that have been made. All of this resulted in a confrontation. It is for these reasons that the Labor Party has advanced this censure motion today.

Mr GORTON:
Higgins

– The motion before us is that the House has no confidence in the Minister for the Interior (Mr Hunt) because of his handling of the dispute in removing the tent city outside Parliament House. That is the only motion before us. As an honourable member on the other side said, it has nothing to do with land rights and nothing to do with anything other than the Minister’s propriety in handling the erection of tents in front of Parliament House. The Minister is attacked on 2 grounds, apparently: Firstly, that he removed those tents and, secondly, the way in which he removed them. I want to examine them separately because 1 believe this to be the fact: Either the lawns in front of Parliament House are a public preserve or they are a preserve on which people can erect tents, park caravans, sleep in sleeping bags and do anything of that kind which they like. They are one or the other. If they are to be areas which are reserved for the public, which the public can walk over and enjoy and on which the public can exercise their rights, then the rights of the public will be infringed if any organisation is allowed to set up tents, to park caravans or in any other way to impede the rights of the public on those reserves.

In the instance which is under discussion the rights of the public were definitely infringed on one occasion when some members of the public were moved on from the vicinity of the King George V Memorial by some of the individuals who were camped in the tents outside Parliament House. Clearly if these lawns are to be preserved - I believe they should be, otherwise we will have a tent city in which any organisation can erect a tent and this would be an unsanitary and unhealthy public eyesore and would obstruct the rights of the public - action has to be taken. Either they are public lawns or they are areas on which people can park. If they are to be areas on which people can park, then anybody can erect a tent city whether they are Aborigines or members of the Returned Services League or the Country Women’s Association. I believe that the Minister would move any of them on and I believe that he would be right in doing so. 1 am sure that he would move them on even if they were members of the Victorian Farmers Union. He would be entirely right to do so because either no organisation or person is entitled to park and erect tents there or any organisation or person is entitled to park and erect tents there, lt they were entitled to do this it would create absolute chaos. I believe th.it on the first count the Minister was entirely right, in protecting the public interest, in removing this tent city not because it was anything to do with Aborigines but because he should have done so no matter whom it had anything to do with. That is all I have to say on the first point of the attack on the Minister.

Secondly, we are asked to believe that the way in which he carried out this duty was improper. We have heard from him. I do not believe anybody would deny the accuracy or the truth of the statements he used in his speech to the House, saying that every effort was made by him to use reason and common sense in order to ensure that there was no confrontation, as referred to by some speakers on the other side of the House, and that these reasonable approaches failed. It has never been suggested that he did not have the legal right to remove the tents whether he passed the Ordinance to which reference has been made or not. But, having this legal right and having failed in a reasonable and sensible attempt to bring about a compromise removal, he was legally bound, I believe, by his oath of office to enforce the law and to ensure that people were not allowed to park haphazardly in front of Parliament House and erect tent cities there. We can get from his own speech the whole sequence of events.

The only other point I want to make on this matter is that I do not think I have ever heard a more irresponsible speech in this Parliament than that which was made by the honourable member for the Australian Capital Territory (Mr Enderby). His speech was an example of the most sickening double think, lt would be an irresponsible speech if it came from a layman; it is doubly irresponsible when it comes from a lawyer who has been admitted to the Bar and is required to uphold the law of which he is a servant. We have been told that violence occurred because the police were seeking to carry out their duty and that the fault lay with the police.

Mr Enderby:

– No. it was not the police; it was the Minister.

Mr GORTON:

– The suggestion by the honourable member who is interjecting from outside the House - another example of his regard for the law and the rules of the Parliament - as all who listened to him in this House and outside it will know, is that the responsibility was on the police; and he went on to say …r.-1.., on by the Minister’. That is a shocking accusation against a Minister who was carrying out a law and ensuring that the police carried out a law. It is perfectly right and sensible for the honourable member for the Australian Capital Territory to object to that law, but to stand up in this House and to attack the police and the Minister by saying that that was the cause of the violence seems to me to be something which no lawyer could possibly accept. Surely, violence does not occur because a police officer seeks to carry out the law; violence occurs only when a citizen, objecting to the law being carried out, uses violence against the servants of the public who are seeking to carry it out. That is what occurred on this occasion, it is no good speaking about who was there and how respectable they were. The violence occurred because the people concerned resisted the carrying out of the law. Here we have a lawyer - a member of this Parliament - supporting them in their resistance and turning the blame on the police who where carrying out the law which was not only the result of the Ordinance but the result of a law of the land.

Mr SPEAKER:

-Order! The honourable member for Prospect and the honourable member for the Australian Capital Territory will cease interjecting.

Mr GORTON:

– It is all right, Mr Speaker; I cannot hear them anyway. The 3 points that I want to reiterate before I sit down are these: Firstly, it was improper for anybody to erect a city of tents in front of Parliament House. Had this been allowed to continue we could have had nothing but a vast sea of tents from all kinds of organisations set up on the lawns in front of Parliament House.

Mr Kennedy:

– We would not.

Mr GORTON:

– Could we not?

Mr Enderby:

– Two tents.

Mr SPEAKER:

-Order! I warn the honourable member for Bendigo who is out of hh seat. I have warned him previously. I request the honourable member for the Australian Capital Territory to desist from interjecting.

Mr Enderby:

– It is very hard, Mr Speaker.

Mr SPEAKER:

-Order. I suggest that the honourable member heed my warning.

Mr GORTON:

– It is quite clear, even to one with limited legal intelligence, that if one organisation could set up tents with impunity then any organisation would be able to do it with impunity. The facts should be that none should be able to do it and that none can do it because the law says so. Therefore the Minister was only carrying out his duty.

Secondly, we know that the Minister tried every reasonable means. Then, as he was bound to do, he instructed the police to carry out the law. Violence resulted not from that but from resistance to the law, which resistance is now being aided, abetted, encouraged and supported by the honourable member for the Australian Capital Territory. In all these matters I think that any reliable, responsible person who examines the record will say that the Minister is not liable to any kind of censure and that he ought to be congratulated for carrying out the law without fear and without favour. If there is one criticism that could be made of him it is that he did not act months before and move them off much earlier, but I think that has nothing to do with him and it is not his fault. That rs not a criticism of any kind which should lead us to censure him.

Mr BRYANT:
Wills

- Mr Speaker-

Motion (by Mr Giles) proposed:

That the question be now put.

Mr BRYANT:

– We are debating here an example of governmental thuggery and this is another example-

Mr SPEAKER:

-Order! The honourable member for Wills will resume his seat. There is a motion before the Chair that the question be now put.

Mr Bryant:

– On a point of order, I was on my feet before the motion was moved.

Mr SPEAKER:

-Order! I called the honourable member for Wills. The motion that the question be now put can be moved at any time, even after an honourable member has been called by the Chair. The Assistant Government Whip has moved that the question be now put. I will now put that motion.

Question put. The House divided. (Mr Speaker - Hon. Sir William Aston)

AYES: 59

NOES: 51

Majority 8

AYES

NOES

Question so resolved in the affirmative. Question put:

Thai the motion (Mr Bea/ley’s) bc agreed to.

The House divided. (Mr Speaker- Hon. Sir William Aston) Ayes .. .. i5,

Turnbull, Sir Winton

AYES: 0

NOES: 0

Majority

AYES

NOES

Question so resolved in the negative. Sitting suspended from 6.2 to 8 p.m.

APPROPRIATION BILL (No. I) 1972-73 Message from the Governor-General recommending appropriation for proposed expenditure announced.

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

Second Reading (Budget Speech)

Mr SNEDDEN:
Treasurer · Bruce · LP

– I move: That the Bill be now read a second time.

In doing so I present the Budget for 1972- 73.

Our proposals are geared to achieve social and economic goals of significance to all Australians and particularly families. The briefest portrayal of the Budget is as follows: taxes down; pensions up; and growth decisively strengthened.

page 40

THE ECONOMY

Over the years the Australian economy has demonstrated a growth capacity of better than 5 per cent in real terms. In 1971-72 growth was 3 per cent. We aim to step up that rate, and the Budget is designed to do so.

Last year was a difficult one from both a domestic and an international viewpoint. We did well to come out of it with a growth rate of 3 per cent. The ink was hardly dry on last year’s Budget before the international monetary crisis jolted world confidence severely. Its consequences for our major trading partners, particularly Japan, dampened expectations and led to capital expenditure cutbacks in the mining and other industries. These uncertainties were reinforced domestically by the continuing upsurge of wage pressures. Costs and prices rose rapidly and there was a marked setback to business confidence. The employment outlook changed quite quickly and consumers became more cautious.

The impact of these developments on the economy was far from uniform. Public sector outlays grew strongly - up about 13 per cent in current prices. Exports also rose strongly - up 13 per cent. This rise has been reflected in, among other things,, a welcome lift in farm incomes. Another strong growth area has been housing. Last year 146,000 new dwellings were commenced - up 6 per cent. The upward trend quickened in the second half of the year.

That is one side of the coin. The other is to be seen in the weakness in consumer spending and in business investment.

For the year, consumer spending at constant prices rose by about 3 per cent. A variety of reasons has been advanced. Personal borrowing for the purchase of consumer durables fell off and savings ran high. A natural consumer resistance to higher prices seems to have played a role. And, although money wages have been rising rapidly, the increasing bite of the progressive personal income tax scale has combined with rising prices to restrict severely growth in the real purchasing power of take-home pay. Single income families, especially those with children, have been particularly hard hit.

This slackness in consumer spending has been basic to the economy’s lack of punch. Our first objective in this Budget, therefore, is to create conditions conducive to stronger consumer spending.

Business investment, too, has been nagging. In part, this reflects some decline, perhaps inevitable, in expectations in the mining industry. Some tailing away has also occurred in the strong boom that has been running in some sectors of construction although there has been a recent upturn in building approvals. But in manufacturing industry particularly, an important underlying cause has been slack demand. As consumer demand picks up, investment in those areas will pick up also.

We have, of course, already taken progressive action to steer the economy back to a proper course. Monetary conditions have been made easier and interest rates brought down. Public sector spending was boosted at the Premiers’ Conferences in February and June. In April the basic social services and repatriation pensions were increased and the ongoing rate of personal income tax levy was reduced from 5 per cent to 21 per cent. All of these measures are playing their part. But the economy has proved hard to budge from its too-subdued growth path.

This lagging response is evident in the labour market. At the end of July, 2 per cent of the work-force, after seasonal adjustment, was registered for employment with the Commonwealth Employment Service. This figure compares well with almost any other developed country today. But it is too high for us, and we are determined to reduce it.

The other great problem with which we have had to contend is the continuing upward pressure on costs and prices. Over the past 3 years the consumer price index rose at an annual average rate of 5 per cent, while earnings rose on average by 10 per cent annually. The wage and price rises during this time have been the highest since the Korean war boom. The resulting heightening of inflationary expectations has been only too evident. This process had to be stopped and reversed.

I am glad to say that the heightening tendency has been stopped and there are even some signs that a reversal may be in train. These are early days. But certainly, the price indices themselves have slowed somewhat in their upward rush. The consumer price index increased by 7 per cent in the year to the last December quarter. In the year to the June quarter of 1972 the increase, while still far too high at 6.1 per cent, was at least appreciably less.

It remains to be seen whether this is merely a temporary departure from the earlier trend or a pointer to a new one. Pressures for more frequent and ever-larger increases in money wages remain. While they do, the evils of inflation will persist.

In many past years, budget policy has been inhibited by balance of payments considerations. That is not so this year. Booming exports and a record level of capital inflow have contributed to a large surplus in the balance of payments. The Government is currently reviewing policies in relation to certain aspects of capital inflow into Australia.

To summarise: the economy at present is moving in the right direction. A modest abatement of inflationary trends has been achieved. Demand, although patchy, is growing. Confidence generally has improved in recent months. There is, however, some slack in the economy and in the absence of further action it would be some time before it was fully taken up.

page 41

PHILOSOPHY AND OBJECTIVES

In looking at the year ahead the Government has had in mind a number of considerations.

First, although there is some slack in the economy, it would be irresponsible to provide such a strong budgetary stimulus that a renewed inflationary boom was created. We want to see the rate of growth stepped up considerably. But with liquidity already very high and certain to rise higher, and with prices still rising by around 5 per cent per annum, to go further would be foolhardy.

Secondly, for some time now public sector spending has run ahead very fast, with private sector spending lagging. There are important needs served by our public expenditures but there are also costs - whether from the viewpoint of the individual taxpayer, who finds taxation more and more a burden, or of the private sector as a whole, which finds its room for growth constrained.

It is central to our objectives that the needed stimulus to the economy should not be by way of an excessive growth of Commonwealth expenditures. We have sought as much scope as possible for reducing the burden of taxation. That has been our primary aim and I believe we have achieved it.

Thirdly, in framing our proposals we have selected measures which provide a boost to private sector spending, but also new initiatives with longer-term objectives.

Finally, we have also been determined to find room for measures having merit on broader grounds of social welfare and equity.

I come now to our expenditure proposals.

page 41

EXPENDITURE

The forward estimates of expenditure, the implementation of which I announced last year, have proved helpful. Accordingly, we will continue with the further development and application of the forward estimates procedures.

A detailed analysis of the expenditure estimates is set out in the accompanying Statements. In total, expenditures are estimated to increase this year by $ 1,045m or 11.6 per cent to $10,078m. This is virtually the same rate of increase as occurred last year.

Payments to the States

Payments to the States constitute the largest single element in the Commonwealth’s expenditures. Including funds to finance State works and housing programmes, they are estimated to increase by $395m, to $3,449m.

At the June Premiers’ Conference we increased the financial assistance grants by an extra $128m, of which SI 24.5m escalates under the formula.

Total general revenue assistance, including special grants recommended by the Grants Commission, is estimated at $ 1,692m. Adjusting for the transfer of pay-roll tax, the estimated increase is about $280m.

State works and housing programmes at $892m, including $248.5m in grants, are $90m greater. This will provide a significant boost to State capital expenditure.

Specific purpose payments for purposes such as roads, schools and universities are expected to increase by 24 per cent to $775m.

page 42

NATIONAL HIGHWAYS

We will provide up to $2.5m over 4 years to South Australia for completion of the sealing of the Eyre Highway. This demonstrates our interest in seeing adequate progress in the development pf highways which serve as major interstate links.

We will develop in consultation with the States a suitable programme for further improvement of the national highway system, to be an integral part of the general arrangements for assistance to the States for roads beyond June 1974 when the present Commonwealth Aid Roads legislation expires. $250,000 is provided this year for investigations and planning to develop such a programme.

Defence

There is a requirement to develop defence forces with a greater independent capability so that we may be more selfreliant in protecting our own interests and in dealing with lesser military situations. There is also a requirement to intensify our defence understandings with our neighbours as a contribution to confidence and stability in the region. In addition, there is a need to maintain our understanding with the United States to provide a foundation of Australian security in the contingency of threats or actual attack going beyond Australian capacity to deal with alone.

Even after allowance for the reduction in National Service, the Defence Vote proposed is SI, 323m - SI 06m more than expenditure last year. Additional Estimates may well be needed for Forces’ pay and allowances when the recommendations of the Woodward Committee of Inquiry are received.

Expenditure proposed for capital equipments is $200m compared with $140m last year. Major equipments to be delivered this year include the initial batch of 6 F111C aircraft and initial deliveries of medium-lift helicopters. Provision has been made for the refitting of HMAS Vendetta and for the RAN hydrographic ship which is due for completion in early 1973.

New capital equipments will be ordered this year. Chief among these are 3 destroyers, with ancillary helicopters, at a total estimated project cost, in 1972 prices, of $355m. The expenditure will be spread over a decade. Expenditure this year for strategic bases, service accommodation and other defence facilities is $5 7m. $ 1,065m is for non-capital expenditure - up $42m. The increase reflects price and wage increases.

Assistance to Industry

Details are given in Statement No. 9.

Assistance under the export incentive scheme is expected to total S68m - up $9m.

There will be a substantial increase in assistance to the shipbuilding industry. The net amount provided is $3 3. 7m, up $20.3m.

Payments to rural industries are estimated to total $233m compared with $297m last year, and $2 1 Om in 1970-71.

The decrease is due largely to the lower requirement expected for wool deficiency payments, now that wool prices have improved. As already announced, the Government has decided to extend the deficiency payments scheme for woolgrowers until 30tb June 1973 on ‘the same basis as in 1971-72.

Following the Government-sponsored twoyear programme of research and commercial trials on pre-sale objective measurement of wool, a further allocation of $700,000 is made for research, implementation and development. Also provided is $27m towards the cost of financing the joint industry-Government wool research and promotion programmes. Other wool marketing assistance includes $4.2m towards the costs involved in handling wool included in the Price Averaging Plan.

Expenditure under the wheat industry stabilisation scheme in respect of exports from the 1971-72 crop is expected to be $47m. Last year expenditure was $58ra and included payments for both the 1969-70 and 1970-71 crops.

A new five-year stabilisation plan for the dairy industry commenced on 1st July 1972. Under the plan the level of government assistance is determined each year in the light of the needs and circumstances of the industry. The amount for bounty on butter and cheese in 1972-73 is $28. 5m.

The Nitrogenous Fertilizer Subsidy Act which is due to expire on 31st October 1972 will be continued until 31st December 1974. Expenditure this year is estimated at $10m.

S56m, the whole of the balance of the $100m originally intended for expenditure over 4 years, is provided in the estimates this year for the continuation of the rural reconstruction scheme. We have agreed to provide a further SI 5m to finance assistance approved in the latter part of 1972-73 but carried over for payment in 1973-74.

It is estimated that $4m will be paid to the States under the marginal dairy farms reconstruction scheme.

A fruit growing reconstruction scheme, supplementary to the main rural reconstruction scheme, will be introduced. $4.6m will be provided to assist the removal of surplus trees by growers of canning peaches and pears, and fresh apples and pears, who are in financial difficulties. Expenditure of $2m is expected this year.

The new scheme will take time to come fully into effect. Meanwhile, the fresh apple and pear industry is facing a particularly unfavourable situation and we will provide special short-term assistance. The maximum quantity of apples and pears which may attract the maximum payment under the stabilisation scheme is to be raised by 500,000 bushels for 1972 exports only. The provision for payments by the Commonwealth in 1972-73 has been increased to $3,150,000.

Subject to the proviso that all mainland State Governments will implement production controls, we will provide a onceandforall grant of $750,000 to the egg industry to help sustain producer returns while the present large stocks of egg pulp are being cleared.

The campaign to eradicate bovine brucellosis and tuberculosis will be intensified.

Subject to agreement with the mainland States to provide funds on a $ for $ basis, the Commonwealth will increase its contributions to $4m - up SI. 6m on last year. Additional expenditures of $360,000 in the Commonwealth Territories will be provided if required this year.

page 43

RURAL LENDING FACILITIES

After an intensive review of the longterm credit facilities available to farmers, the Government has come to the view that there are deficiencies. The Budget provides a sum of $20m to be appropriated for purposes of facilitating the increased availability to farmers of long-term loans. The measures to be adopted have still to be finalised; the intention is to bring down legislation in this session of the Parliament.

Advances for Capital Purposes

Advances for capital purposes will increase by $29m to $522m.

There is a reduction in the advance to Qantas. Last year Qantas received $74.2m in overseas loans for aircraft acquisition - this year it is receiving $11. 6m, plus $2 5m additional share capital.

The Australian National Airlines Commission is to be advanced $ 13.4m for aircraft purchases. The Commission is also being advanced $25m to assist it to introduce new accounting arrangements for superannuation. There is an offsetting receipt of $21m from the Commission.

The capital of the Australian Industry Development Corporation has been increased by a further $12. 5m to a total of $50m.

Capital of the Export Payments Insurance Corporation will be increased from $4m to $8m.

An advance of $288m is provided for the Post Office. After allowance for special factors this is an increase of over 11 per cent.

Other Capital Works and Services

Expenditure on other capital works and services is estimated at $264m, slightly less than last year. A number of major new projects will be commenced this year, but expenditure on them in 1972-73 will be relatively small. The major items involved relate to community welfare and municipal service projects, principally in the mainland territories.

The near completion of projects to extend and up-grade airport runways at both Melbourne and Sydney will result in an estimated $17m less being spent this year on civil aviation works.

Following an agreement with the South Australian Government we will construct a railway from Tarcoola to Alice Springs. The total cost is estimated at $54m at current prices. Expenditure of S3. 4m is expected this year.

New computing facilities for the Department of Customs and Excise will cost $1.6m this year.

Departmental Running Expenses

The rapid increases in wage and salary payments in 1971-72 are reflected in the estimated increase of $62m or about 10 per cent in departmental running expenses. There was an additional public service payday in 1971-72 - the increase this year would otherwise have been larger.

Rapid increases in departmental running expenses cannot go on unfettered without effects on the resources available to pursue other government policies. Last year I announced a review of existing functions and activities of departments. This review has not yet been completed. Its benefits are expected to emerge in the longer term.

The rates of compensation for Commonwealth employees have been increased. The lump sum payment for death will be $14,500 and the weekly incapacity rate will be $43 for a single man, $11 for a wife and $5 for each dependant child. The new rates will apply from the date of Royal Assent to the enabling legislation.

page 44

GRANTS TO ORGANISATIONS

$5. 7m will be provided for the Performing Aru; - an increase of $l.5m. Assistance for Art, Literature, Film and Composition will be $1.7m. $950,000 will be paid to the Australian Film Development Corporation.

Assistance to the National Fitness movement in the triennium commencing 1st July 1972 will be increased. The yearly operational grant, now $350,000, becomes $500,000. The total capital grant, over the triennium, now $200,000, becomes $300,000.

The annual grant to the Australian Conservation Foundation will be increased from $50,000 to $150,000. A grant of $20,000 is being made to the Keep Australia Beautiful Council. The Australian ‘ Council of National Trusts will receive an additional $50,000 a year. The grants to the Surf Life Saving Association and the Royal Life Saving Society will be increased from $34,000 to $50,000 per annum in each case. An annual grant of $5,500 is to be made to the National Council of Women.

page 44

ROAD SAFETY

In addition to the annual grant to the States of $150,000 for road safety promomotion, the Budget provides $575,000 for direct Commonwealth expenditure on road safety promotion and research, an increase of $175,000.

page 44

ASSISTANCE FOR TOURIST ATTRACTIONS

An approach has been made to the States seeking their agreement to a programme of development of tourist attractions - such as Australiana and pioneer settlements, the preservation of historic sites and buildings, fauna sanctuaries and the like - considered to have particular appeal to overseas visitors to this country. The Commonwealth will match expenditure by the States $ for $ up to a total Commonwealth expenditure of Sim annually. $250,000 may be needed in 1972-73.

page 44

ABORIGINAL ADVANCEMENT

Aggregate expenditure on Aboriginal advancement in 1972-73, including payments from the Aboriginal Advancement Trust Account, is expected to be $53. 2m - up $2 1.9m or 70 per cent. Grants to the States for expenditure by them on housing, health, education and other programmes will increase by 58 per cent to $ 1 4.5m. An amount of $5m will be available in 1972-73 for the acquisition of properties off reserves, and $3.7m is being provided for the Aboriginal Secondary and Study Grants schemes. The Northern Territory Administration expects to spend $24.6m on Aboriginal advancement in 1972-73, an increase of S9m or 58 per cent.

page 45

INDUSTRIAL TRAINING

Because a skilled work-force plays a critical part in improving productivity, the Government will continue its policy of stimulating industry to improve the quality of training.

We intend to introduce a cash subsidy scheme to promote the training of apprentices.

Two new employment training schemes are proposed - one to extend training assistance to persons made redundant and the other to enable persons with a history of unemployment to acquire job skills which are in demand. We shall increase the level of subsidy to employers under the employment training scheme for Aborigines.

We also propose to further encourage the employment and training of training specialists.

The total estimated cost of these new initiatives for 1972-73 is $1.9m and, in a full year, $4.7m.

page 45

ASSISTANCE WITH FARES

The Government has decided that unemployed persons should not be inhibited in seeking employment by the cost of fares, and will be asking the States for their cooperation in developing a viable scheme.

The estimated cost in 1972-73 is $200,000.

Details of this and the training proposals will be given by the Minister for Labour and National Service.

page 45

IMMIGRATION

The steady growth of Australia’s population continues to be a major goal of policy. Our economic development and growth as a nation for 25 years has owed very much to our success in attracting migrants. We must continue those active migration policies which have been serving us so well. Accordingly, the Government has decided, on the basis of the economy’s likely needs and the availability of suitable settlers, that the immigration programme for 1972-73 should be 140,000. Assisted passages will be provided for 90,000 at a cost of $29.6m.

Increasing emphasis is to be placed on migrant counselling and selection, and on English language training and migrant wel fare services. Additional expenditure this year is S3. 2m. The Minister for Immigration will give details.

page 45

EXTERNAL AID

In relative terms, Australia’s aid performance in respect of both volume and type of aid ranks us among the world leaders.

As shown in Statement No. 8, the estimates provide for a total of $220m to be spent on official economic aid to developing countries, including $145m for Papua New Guinea.

Nearly $14m will also be provided for defence aid to certain developing countries in South-East Asia. In addition, we shall continue to assist in the development of Papua New Guinea’s defence force.

page 45

SOCIAL WELFARE

The Budget provides for significant advances in all areas of social welfare - education, housing, health and pensions.

Education

The education of all Australians continues to be a particular concern of the Commonwealth. Direct expenditure by the Commonwealth, including payments to the States for education, is expected to reach $426m - up $72m.

In addition to general financial assistance, specific payments to the States for education are estimated to reach $250m, compared with $206m last year.

The largest grants, totalling $138m, are for universities and colleges of advanced education. Provision has been made for the new triennial programmes which commence in January 1973.

Other payments to the States including capital grants for school construction, secondary school science laboratories and libraries, technical colleges and teachers colleges and per capita grants for independent schools are expected to be SI 12m, an increase of $30m.

The grants to the Australian National University and the Canberra College of Advanced Education are $42m. Expenditure on schools and technical colleges in the Australian Capital Territory and the Northern Territory is estimated at $49m, compared with $3 9m last year.

From the beginning of 1973 there will be significant increases in the number of Commonwealth tertiary scholarships available, together with an increase in benefits. The number of Open Entrance University Scholarships will be increased by 1,000 to 9,500, the number of Later Year University Scholarships by 1,000 to 5,000 and the number of Advanced Education Scholarships by 2,000 to 6,000 awards. In addition, there will be increases in the living allowances and a substantial relaxation of the means test applicable to those living allowances. Commonwealth Post-graduate Scholars will receive an increase in their stipends from $2,600 to $2,900 per annum. In all, expenditure on tertiary scholarships this year is estimated at $47m - up $9m.

The Government has decided to change the arrangements for Commonwealth Secondary Scholarships. The new scholarships will be tenable during the last 2 years pf secondary schooling, and will be awarded on the present competitive basis. There will be 25,000 new awards each year, compared with 10,000 under the existing scheme. There will be a change in the benefits. Each award will carry a basic allowance of $150 per annum and a further allowance of up to $250 per annum will be available subject to consideration of family income. Holders of the present Commonwealth Secondary Scholarships who are now in the first year of their awards will receive benefits for their final year in 1973 on the existing basis. During 1972-73 payments are estimated at $8.4rs compared with $6.9m last year.

During the 1973-75 triennium, grants for research projects recommended by the Australian Research Grants Committee will be $20m, up 48 per cent on the present triennium. This year expenditure is estimated at $6m compared with $4.5m last year.

The Commonwealth wishes to join with the States in a programme to promote the study of Asian languages and cultures in Australian schools. The Commonwealth will contribute $1.5m over a 5 year period. Expenditure this year is estimated at $100,000.

The Minister for Education and Science will make a detailed statement, and present the reports of the Australian Universities Commission and the Australian Commission on Advanced Education for the 1973-75 triennium together with our decision on the recommendations.

Housing

We propose changes in the Homes Savings Grant Act to keep it attuned to current conditions. The maximum value of a home which may attract a grant will be increased from $17,500 to $22,500. We will also increase the maximum grant from $500 on savings of $1,500 to $750 on savings of $2,250, with an appropriate increase in the limit on annual qualifying savings. These increases will apply to homes bought or built or whose construction commences, on and after tomorrow. The requirements governing the eligibility of savings in credit unions will be substantially relaxed by requiring only one condition, namely, that not less than 20 per cent of its total annual lending i* in housing loans. The cost of these proposals is estimated at $8. 5m this year and $9.8m in a full year.

An amount of $70m - up $5m - has been provided for advances under the War Service Homes scheme.

Health

The Government has reviewed the arrangements for assisting people requiring nursing home care. We propose to introduce new integrated measures to help not only chronically ill patients in nursing homes, but also to assist aged infirm people who can be looked after in a home environment.

We shall introduce a nursing home insurance benefit for contributors to hospital insurance organisations. Pensioners who have Pensioner Medical Service entitlement cards will also receive this benefit as additional assistance without having to join a hospital fund.

When added to the existing Commonwealth benefits of $24.50 a week for ordinary care patients and $45.50 a week for intensive care patients, these new benefits will give nursing home patients greater financial protection against the cost of fees. The amount of the new benefit will vary as between the States. The Minister for Health will give details.

To reduce the demand for nursing home treatment a new domiciliary care benefit will be payable to a person who, in his own home, accepts responsibility for the provision, on a regular and continuing basis, of professional nursing care and supporting services required by an aged relative. The benefit will be available on the basis of medical need in accordance with requirements determined by the Department of Health and will be paid at the rate of $14 a week. As in the case of nursing home benefits, H will not be subject to a means test.

The National Health Act will be amended to authorise the introduction of the new nursing home benefits and associated arrangements on 1st January 1972. The domiciliary care benefit will commence from 1st March 1973.

To encourage the availability of professional nursing care in the home, it is proposed to increase, with effect from 1st September 1972, the existing Commonwealth subsidy to approved organisations providing home nursing services. For organisations established before September 1956, the annual Commonwealth payment for each nurse who attracts subsidy will be increased from $3,200 to $4,300. For organisations formed after that date, the subsidy for each nurse employed will be increased from $1,600 to $2,150 a year. As at present, the Commonwealth subsidy to any organisation will not exceed that paid to the organisation by a State. The Minister for Health will be making a general statement.

To encourage the provision of hostel accommodation for the aged we will, as a special arrangement limited to 3 years, grant organisations that are eligible under the Aged Persons Homes Act special assistance. The Commonwealth will meet the cost of 2 hostel beds for every one unsubsidised bed operated by the organisation or one bed for 2 where the accommodation was previously subsidised on a $ for $ basis. A condition will be that the beds are allocated without donation and in accordance with need. These additional hostel beds will be provided up to a cost not exceeding $7,800 per single unit which is the amount presently allowable for maximum subsidy purposes. In addition, a grant of $250 per unit will be made towards the furnishing of these additional hostel units.

We will also double the present rate of subsidy to eligible organisations providing personal care services for the aged in hostel accommodation. The new rate will be $10 per week for each occupant aged 80 years or more.

The cost of these measures in the nursing home, home nursing and aged persons homes areas is estimated at $ 16.9m in 1972-73 and $43.9m in a full year.

Child Care

To benefit children from low income and other special need families, the Government proposes to introduce legislation as soon as possible to assist in the establishment and running of child care centres operating on a non-profit basis. It is envisaged that these centres will cater for the children of working parents, giving priority of admission to children in special need, such as those from single parent families, and to the children of sick or incapacitated parents.

We propose subsidies to enable these centres to offer reduced fees for low income families and others in special need. Unmatched capital grants will be made available direct to approved non-profit organisations for the provision and equipping of such centres and staff subsidies will be provided to encourage the employment of certain appropriately qualified staff. The estimated cost of the scheme this year is $5m.

Social Services

I will deal first with the position of the more needy.

page 47

AGE, INVALID, WIDOWS AND SERVICE PENSIONS

Last April the standard rate of pension was increased by $1.00 a week and the rate for a married pensioner couple by $1.50. When introducing these measures I then said I was anticipating what would normally have been part of our budget measures.

The Government now proposes that the standard rate of age, invalid and repatriation service pension payable to single people and the pension payable to widows with children be increased to $20.00 a week - that is, by a further $1.75. This brings to $4.50, or 29 per cent, the increase in the standard rate pension since March 1971.

Widows without children will receive an increase of $1.25 a week to a new maximum weekly rate of $17.25. The combined age, invalid or service pension of a married couple who are both pensioners will be increased by $2.50, raising the maximum weekly payment to them to $34.50.

The Government has given particular attention to relieving hardship. We will extend eligibility for pension, at the married rate, to the wife of an age, invalid or service pensioner, now not qualified herself foi pension. After taking account of the consequential reduction in the husband’s pension in such cases from the standard to the married rate, the present position of such married couples will improve by up to $8.25 a week where the wife is now eligible for wife’s allowance and up to $16.25 a week in other cases.

Further, the supplementary assistance to pensioners paying rent, which is payable subject to a separate means test, will be increased from the present maximum rate of $2 to $4 a week. We propose also to extend eligibility for supplementary assistance to married pensioner couples paying rent.

The rates of long-term sickness benefit will increase by $1.75 a week for adults and by $1 a week for unmarried minors. The maximum rate of supplementary allowance of $2 a week for long-term sickness beneficiaries will also be increased to $4 a week.

The increases in the rates of social service pensions and repatriation service pensions and in supplementary assistance and the extensions of eligibility will apply, as appropriate, to rehabilitation, sheltered employment and tuberculosis allowances.

page 48

EASING THE MEANS TEST

lt has been an important and continuing part of the Government’s social welfare policy to relax the means test progressively. As a further step in this policy, and as a prelude to more sweeping proposals to which I shall come in a moment, the Government now proposes immediate large increases in the amount of ‘free’ means which pensioners may enjoy without reduction in pension.

Under present pension arrangements, where means-as-assessed exceed $10 a week in the case of a single pensioner and $17 a week for married couples, the means test operates to taper off pension entitlements.

The Government now proposes to increase the limit of free means from $10 to $20 a week in the case of a single pensioner and from $17 to $34.50 a week in the case of a married pensioner couple - that is, to the same levels as the maximum rates of pension in each case. At the proposed rates of pension, therefore, full pension will be payable until the combined pension and meansasassessed exceed double the pension - that is, $40 a week for the single pensioner and $69 a week for a married couple. Eligibility for part-pension will now not cease until meansasassessed reach three times the pension - that is. $60 a week for single persons and $103.50 a week for married couples. When we consider that average earnings are now about $98 a week and that pension payments are presently non-taxable, these increased eligibility limits must be considered generous.

In addition to this substantial easing of the means test generally, we propose 2 other related measures. First, we shall increase from $4 to $6 a week the maximum deduction from income for means test purposes for each child of a pensioner. Secondly, the Government has decided to treat superannuation pensions and annuities more favourably for means test purposes than hitherto.

At present a superannuation, pension or annuity is treated wholly as income under the means test although such receipts usually comprise substantial elements of capital or savings. We propose that a superannuation pension or annuity which is payable for life be converted into a property equivalent and the latter amount be taken into account in the means test with any other property. Such action would be to the pensioner’s advantage in the vast majority of cases. But if. in particular cases, this should not prove to be so, the changed treatment will not be applied.

Not only will many superannuation pensioners and annuitants receive increases in existing social service pensions, but other superannuitants who are now ineligible for a means-tested pension will also qualify for the first time. Further details will be announced when the legislation is introduced. 1 should make it clear that the eligibility conditions for Commonwealth ancillary benefits, such as membership of the Pensioner Medical Service, which are presently available to more than one million pensioners and their dependants, will not be relaxed as a result of the proposed direct easings of the means test for pension eligibility, including the proposed new treatment of superannuation pensions. Ancillary benefits will be available only to those present and future pensioners who qualify for them under the existing means test for ancillary benefits. The same means test will be used to determine eligibility for ancillary benefits for future pensioners.

Our social service proposals in total will add $1 45.2m to expenditures in 1972-73 and $ 197.1m in a full year.

page 49

ABOLITION OF THE MEANS TEST

These are our immediate steps in the field of the means test.

We have decided to abolish the means test within the next 3 years for age pension eligibility for residentially qualified men and women aged 65 years and over.

The free of means test pension will be subject to income tax. Following past practice, provision will be made to exempt, or partially relieve from taxation persons in the lower income groups receiving the free of means test pension - up to certain specified limits to be determined.

We have decided to subject the means test free pension to taxation because of cost and equity considerations. In particular, if everyone in receipt of free of means tes: pensions were to receive them free of tax, those with higher incomes would benefit disproportionately by comparison both with pensioners on lower incomes and people less than 65 not entitled to free of means test pensions.

The introduction of the proposed free of means test age pensions for persons of 65 or more years will not alter the position of people who are now eligible or may become eligible for pensions on a means tested basis, for example, women aged 60 to 64 years, and widows and invalids who are residentially qualified for pension, and ex-servicemen aged 60 to 64 and exservicewomen aged 55 to 64 who have served in a theatre of war.

Eligibility for supplementary assistance and for Commonwealth ancillary pensioner benefits, such as membership of the Pensioner Medical Service, will be conditional, as now, on satisfaction of the relevant special means test.

The Government’s commitments to introduce free of means test pensions for people aged 65 or over is an historic decision and represents a major social advance. It is one that has, of course, considerable financial and social implications. Because of this, the Government proposes to appoint a Committee of Enquiry to examine and report on these matters and on how this proposal may be responsibly financed with particular reference to national superannuation.

Repatriation

The maximum general rate war pension will be increased by $2.00 to $14.00 a week.

The special rate pension, or its equivalent, will be increased by $3.50 to $48.00 a week.

The intermediate rate war pension will be increased by $2.75 to $34.00 a week.

War widows pensions will be increased by $1.75 to $20.00 a week and the domestic allowance will be increased by 50 cents to $8.50 a week. The allowance payable for each child of a war widow will be increased by 35 cents to $7.35 a week. The pension for a child who has lost both parents will be increased by 70 cents to $14.70 a week.

Other improvements in repatriation allowances relating to requirements for attendants, to amputees and those who have lost an eye, educational allowances, and student children will be announced by the Minister for Repatriation.

The Government has decided that it will meet the greater part of the cost of nursing home care for chronically ill war widows, special and intermediate rate war pensioners and First World War nurses on the same basis that I have already mentioned for nursing home patients who are enrolled in the Pensioner Medical Service.

The cost of repatriation benefit proposals is estimated to be $14.8m in 1972-73 and $20m in a full year.

page 50

REVENUE AND THE BUDGET OUTCOME

The proposals I have just outlined result in expenditure in 1972-73 estimated at $10,078m.

At existing rates of taxation and charges, receipts in 1972-73 are estimated to total $9,882m. This would imply a deficit of some $196m. In terms of the balance of domestic receipts and expenditures it would mean a domestic surplus of $375m. The actual outcome in 1971-72 was a deficit of $187m and a domestic surplus of $387m.

I have said that the Government this year attaches high priority to reducing taxation. In framing our proposals we have ensured that the tax measures we wished to bring down could be fitted within an economically sound budget.

A domestic surplus of $375m would, under current economic circumstances, have an undesirably dampening effect upon the economy. Indeed, I go further. In present economic circumstances what is called for is not a domestic surplus at all but a moderate domestic deficit. The degree of such deficit can only be a matter of broad judgment. What is clear is that our tax proposals are right in line with what is required on economic management grounds. f TAXATION PROPOSALS

I deal first with some minor increases in taxes, charges and duties.

page 50

LIGHT DUES

To help meet the rising costs of providing marine navigation aids, it is proposed to increase light dues - that is, charges to shipping for the use of these facilities - from 22 cents to 25 cents per net registered ton per quarter from 1st October 1972 to yield $750,000 in 1972-73.

page 50

AIR NAVIGATION CHARGES

The Government is considering a report on the future basis of charging for airports and airway facilities. In the meantime we have decided to increase air navigation charges by an average of 5 per cent from 1st December 1972 to yield $800,000 in 1972-73.

page 50

LIQUEFIED GAS AND PRODUCTS REFINED FROM OIL SHALE

At present excise is not levied on liquefied petroleum or other gas used in propelling road vehicles. This constitutes a competitive advantage over motor spirit which could substantially undermine the revenue from excise. While the use of liquefied gas in propelling road vehicles may reduce automotive exhaust pollution, its advantages in this respect are limited in extent and will be diminished as emission control standards are implemented.

A tax on liquefied gas used in propelling road vehicles will be introdaced at a rate of 3 cents a litre, which is about 20 per cent lower than the excise on motor spirit. Details will be given by the Minister for Customs and Excise. The tax will not be levied on liquefied gas used for purposes other than propelling road vehicles.

The exemption from excise of products refined from oil shale, introduced many years ago when Australia had no local supplies of crude oil, will be removed.

page 50

A.C.T. STAMP DUTY

Stamp duties were introduced into the Australian Capital Territory to stop the Terrify being used as a tax haven, and to ensure broad comparability of burdens of taxation in the Territory and the States.

Last January the States increased their rates of duty on the sale and purchase of marketable securities. The Australian Capital Territory duty on such transactions will be increased to the same level. This means increasing from 20 cents to 30 cents per $100 the duty payable by both buyer and seller in transactions in marketable securities through brokers, and the same proportionate increase in the rate of duty payable to buyers in transactions not through brokers. The increased charges will take effect from 1st November 1972. The yield will be $200,000 in 1972-73.

I now come to our tax concessions. Sales Tax

The Government has decided to exempt works of art from sates tax regardless of origin or of nationality of the artist. The cost to revenue is expected to be $480,000 in 1972-73 and $600,000 in a full year.

We did consider whether some part of our major taxation reductions should be in the sales tax field. Such a course has been urged from some quarters as a means of bringing down prices and assisting to arrest inflation. But calculations show that a reduction of 2i per cent in the rate of sales tax on all goods in the 15 per cent and 27* per cent rate classes would cost over $90m in a full year but would directly reduce the consumer price index by a once only 0.2 per cent even if the cut were passed on in full to the final consumer.

Our conclusion is that we should, with 2 exceptions, concentrate reductions in the field of personal income tax. First, the 2 exceptions.

Estate Duty lt is clear that estate duty is now falling too heavily on modest estates. Except for a change which was made in 1970 in respect of primary producers, the exemption limits have remained unchanged since 1963. With rising money values, an increasing number of quite modest estates are becoming dutiable. On other, but still not large estates, heavy amounts of duty are being levied.

The general statutory exemptions are presently $20,000 where the estate passes wholly to close relatives and $10,000 where it passes wholly to others. For primary producer estates the limits are higher, at $24,000 and $12,000, respectively.

It is proposed to double all statutory exemptions. Approximately one-half of all estates which would be dutiable under present law will be totally exempted from duty by these proposals.

The shading-in provisions will have the effect of reducing duty payable on estates with a value up to 5 times the exemption limit- Only 5 per cent of estates which would be dutiable under present law will not experience some reduction in duty.

The cost to revenue of this proposal, which will apply to the estates of persons whose deaths occur after today, is $3m in 1972-73 and $19m in a full year.

Gift Duty

It is also proposed to increase the exemption level for gift duty. At present where the total value of all gifts made by the same donor within the period of 18 months before and 18 months after the time of making the gift does not exceed $4,000, no duty is payable. It is proposed to increase the exemption to $10,000 where a gift is made after today. The cost to revenue is expected to be $400,000 in 1972-73 and $750,000 in a full year.

Personal Income Taxation SELF EDUCATION

I mention first a relatively small fiscal matter, but one which we regard as of high importance to personal incentive and careerbuilding. We propose to allow a deduction for income tax purposes of up to $400 for expenditure by a taxpayer on his own education where the expenditure is related to his income-producing activities but is not allowable under the existing law. Details will be given when the legislation is introduced.

The cost to revenue is estimated to be $200,000 in 1972-73 and $4. 5m in a full year.

page 51

THE PERSONAL INCOME TAX BURDEN

The Government views with concern the considerable increase in the relative burden of personal income taxation in recent years and the effects which that is having upon our economy and, indeed, our society. In particular, the single income family, the typical suburban family man, is being hit hard.

We strongly believe that personal income taxation is now too high and that, without action to cut it, the situation will become progressively worse with the passage of time. The interaction of money incomes rising with inflation and the progressive rate scale is imposing heavy and increasing burdens. This year provides an opportunity to reduce these burdens. Accordingly, we have decided to concentrate our tax concessions in the area of personal income tax. Our reasons are: -

First, the personal income tax burden is becoming more and more severe. The tax bite is being determined, not in accordance with deliberate aims of policy, but by the impact of inflation on a scale basically designed for another level of incomes altogether.

Secondly, the family man in particular, with all of his other commitments, is finding income taxation looming ever-larger as a problem, and is coming to question the fairness of the burden he bears.

Thirdly, rising taxation is affecting incentives and encouraging tax avoidance.

Fourthly, rising taxation adds to pressure for excessive increases in money wages and salaries. We believe our measures will provide grounds for moderation.

Fifthly, a reduction in personal income tax will put more money directly into the hands of consumers. Their take-home pay and their capacity to spend will be enhanced. There will be a real lift to community and business psychology. That is just what is needed at this time.

page 52

MINIMUM TAXABLE INCOME

We propose to raise the minimum taxable income for individuals from $417 to $1,041 per annum. The proposal will exempt from tax liability altogether about 600,000 taxpayers - among them part-time employees, including married women and students working in vacations. Although persons earning more than $20 in any week may be subjected to PAYE deductions, any PAYE deductions will be refunded if their annual taxable income is below the new minimum of $1,041. The cost to revenue is $14m in 1972-73 and $18m in a full year.

page 52

DEPENDANTS’ ALLOWANCES

The second proposal is very much the product of what I have said earlier about the especially heavy burdens on the family man. We propose to increase all dependants’ allowances by $52. This increase in dependants’ allowances will cost $3 8m in 1972-73 and $63m in a full year.

page 52

THE INCOME TAX RATE SCALE

Last and most importantly, we propose to reduce the rates of personal income tax payable by an average of 10 per cent. In April we reduced personal income tax by 21 per cent; the reduction I now propose is on top of that.

A flat rate cut based on removing the present 21 per cent levy and the granting of a 71 per cent rebate across the board was a possible course. However, we have decided to take what we regard as the more equitable course of re-structuring the tax scale so as to ensure diminishing percentage reductions as incomes rise. Taxable incomes below about $5,500 per annum - that is, the great bulk of taxpayers - will be subject to reductions in taxation larger than 10 per cent; taxable incomes above $5,500 to lower reductions. For example, persons with a taxable income of $2,000 per annum will receive a 14.2 per cent reduction in taxation; at $4,000 the reduction will be 12.4 per cent; at $6,000, 9.4 per cent; at $10,000, 8.0 per cent; and at $40,000, the new maximum marginal tax rate point, the reduction is down to 6.5 per cent.

Let me give one example to show what our income tax proposals taken as a whole will mean to the taxpayers. A family man with a wife and 2 children to support who is earning $98.00 a week - roughly the current level of average weekly earnings - at present would pay annual income tax equivalent to $16 a week if he has no other concessional deductions. Under our proposals this will be cut by $2.75 a week or 17 per cent. If he has other concessional deductions, his present tax bill will be cut by a larger percentage than that.

The cost to revenue of re-structuring the income tax scale as proposed is estimated at $380m in 1972-73 and $480m in a full year.

Our income tax proposals will be reflected in revised PAYE schedules that will be applied to wages and salaries paid from 1st September 1972.

In total, the income tax proposals I have outlined will cost $432m in 1972-73 and $565m in a full year. In conjunction with the sales tax, estate duty and gift duty concessions and the minor increases in certain taxes and charges already mentioned, the net cost of all our measures in the revenue field is put at $434m in 1972-73 and $583m in a full year.

page 52

THE OVERALL DEFICIT

On the basis of these figures and of the expenditure estimates mentioned earlier, we are therefore budgeting for an overall deficit of $630m.

I said earlier that, in terms of an overall outcome which would be consistent with criteria of sound economic management and a responsible fiscal approach, we should be aiming at not more than a moderate deficit in terms of our domestic receipts and outlays. The estimated domestic deficit is $60ra. That seems to us appropriate in current economic circumstances.

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CONCLUSION

In this budget we have provided for record increases in social welfare benefits; we have made a long-awaited move in the field of estate duty; and we have slashed personal income taxation. So far as its direct impact on the individual is concerned, I repeat, what the Budget means is - taxes down, pensions up, and particular help to the family man.

Overall, the Budget will be stimulatory. Our economy, over the years, has demonstrated a capacity for robust growth. The Budget will give the economy the real and psychological boost which is what it now needs to resume a strong growth path.

Of course, any budget can only be framed on the basis of the Government’s best judgment at the time. What the future holds can always be only dimly seen. We shall review economic trends as the year goes on to ensure that the economy moves properly towards its sustainable growth path.

The Government can lay the groundwork for a year of good growth and prosperity. But we shall have to continue to counter the forces adding to inflationary pressures. The Budget is designed to create demand conditions which can be matched by output. It will not bring about a resurgence of demand inflation in the year ahead. But the battle against inflation stemming from cost pressures will have to continue unabated. The emphasis we have laid upon increasing take-home pay through our tax cuts should assist in that battle by providing grounds for more moderation on the wage-push front, and we hope that will be forthcoming.

I think it right to inject this cautionary note. But tonight I shall not dwell upon it further.

This Budget serves the nation’s larger purposes. There are, of course, challenges ahead as well as rewards. This is always so. But anyone who looks around this country - especially if he recalls it 20 years ago - will see why we have cause to read the future with confidence.

Debate (on motion by Mr Whitlam) adjourned.

page 54

STATEMENT No. 1- SUMMARY OF THE 1972-73 BUDGET

The Economic Context

The Commonwealth Budget for 1972-73 has been framed in the context of an economy already picking up from the moderate rate of growth experienced in 1971-72. Features of the economy presently include an easy labour market and an over-rapid, though moderating, rate of increase in costs and prices. Economic growth is expected to quicken considerably in 1972-73. *1971-72* Estimates of the main components of gross national product and gross national expenditure in 1971-72 are given in detail in the document 'National Income and Expenditure 1971- 72' presented with the Budget Papers. In terms of constant prices, the main changes in 1971-72 from 1970-71 shown by the estimates are: - o an increase of 3.1 per cent in gross national product, comprising increases of 2.8 per cent in gross non-farm product and 6.1 per cent in gross farm product; o an increase of 1 . 1 per cent in gross national expenditure, comprising increases of 3.2 per cent in personal consumption expenditure, 4.6 per cent in gross private fixed investment in housing and 3.2 per cent in public authority expenditures on goods and services, partially offset by a decline of 5.8 per cent in gross private fixed investment other than in housing and a reversal of some $520 million in the movement in stocks; o strong growth of 9.2 per cent in exports of goods and services and a fall of 2.1 per cent in imports of goods and services. (In current price terms, there was an excess of exports of goods and services over imports of $472 million, compared with an excess of imports over exports of $44 million in 1970-71.) Also in 1971-72:- e there were continued high rates of increase in money wages and in prices, although some moderation, more particularly in prices, became evident in the second half of the year; o the labour market eased throughout the year, but the bulk of the rise in the seasonally- adjusted unemployment rate from 1.3 per cent of the estimated work force at June 1971 to 1 .9 per cent at June 1972 occurred in the eight months to February 1972; o the money supply grew rapidly, at a rate of 10.5 per cent, reflecting the large balanceofpayments surplus and the easier stance of monetary policy for most of the year. *1972- 73* At the time the budget was formulated, a recovery in economic growth in 1972-73 would have been expected, but to a lesser extent than the productive potential of the economy would accommodate. With a view to reinforcing the rate of this recovery, the budget provides for increases in expenditures, particularly for social welfare and for allocations to the States, arid for substantial taxation concessions aimed at providing a stimulus to private demand, particularly consumer spending. Demand generally should therefore grow considerably more strongly in 1972-73 than in 1971-72. The growth of consumer spending, which has shown some signs of improvement in recent months, is expected- under the influence of policy measures adopted in the budget and earlier - to accelerate. Private fixed investment in dwellings should continue to grow strongly, and the downturn in non-dwelling investment which occurred in 1971-72 is expected to be reversed during the course of 1972-73. The dis-investment in stocks evident last year is also expected to be reversed this year. Public sector demand, both Commonwealth and State, should continue to run high. In 1972-73 gross national product at constant prices seems likely, on present indications and unforseen major new developments apart, to increase by about 5 per cent. This estimate should be reflected in increases of the order of 2 per cent in employment and 3 per cent in productivity- though the latter figure, in particular, is subject to a broad margin of uncertainty. These estimates relate to year on year comparisons - that is, 1 972-73 on 1 97 1 -72. *During* 1972-73, however, growth in employment, productivity and gross national product at constant prices is expected to be greater than suggested by the foregoing figures. Taking the year as a whole, some moderation in wage rates and in prices from the rapid increases experienced in 1971-72 might be hoped for. Nevertheless, with wage rates currently still rising strongly, a relatively large increase of 9 per cent in average weekly earnings has been assumed for the purpose of estimating pay-as-you-earn tax collections. *Budget Estimates in National Accounts Terms* The estimates in national accounts terms are set out in detail in Statement No. 2 where the economic implications of the Budget are also discussed. Further information on the national accounts estimates of Commonwealth budget receipts and outlays, together with information on the transactions of Commonwealth authorities operating outside the budget, is contained in the Supplement to the Treasury Information Bulletin which accompanies the budget documents. The following table summarises the main budget aggregates in national accounts form. Notable aspects are: - o An estimated increase of 12.5 percent in budget domestic outlays in 1972 73 compared with ah actual increase of 11 .5 per cent in 1971-72. These figures have been affected by the transfer of pay-roll tax revenues to the States and the associated adjustment of financial assistance grants payable. Approximately adjusted to remove the effects of that transfer, the estimated increases in domestic outlays in 1972-73 and 1971-72 would be 13.5 per cent and 14.8 per cent, respectively. The decline in the rate of increase in domestic outlays between the two years reflects, among other things, the effects of additional public service and pension pay-days in 1971-72 which inflated expenditure in that year. e The Commonwealth's domestic expenditures on goods and services are estimated to increase by 9.4 per cent following an increase of 1 1 .7 per cent last year. This slowing in the rate of increase mainly reflects the occurrence of an additional public service pay-day in 1971-72 and wage and cost increases which occurred in that year. o A small decrease of 0 . 7 per cent in total budget outlays overseas following an increase of 5.6 per cent in 1971-72. Direct expenditures on goods and services overseas are estimated to increase rapidly, largely because of an expected build-up in payments for defence equipment purchased overseas. There is, however, an offsetting reduction in advances to Qantas Airways Limited and the Australian National Airlines Commission to finance the purchase of aircraft and equipment overseas. o Overall, total outlays are estimated to increase by 1 1 .7 per cent in the current financial year compared with an increase of 1 1 . 1 per cent last year. Adjusted to remove the effects of factors distorting year-to-year comparisons of the figures, the estimated percentage increase in outlays in 1972-73 - 13.5 per cent - is similar to that which occurred last year, that is, 13.1 per cent. o Before taking account of the proposed revenue measures the increase in total receipts in 1972-73 is estimated at 1 1 . 8 per cent. After allowance for the effects of the revenue proposals, which are estimated to reduce taxation collections in 1 972-73 by $436 million, the estimated increase is 6.9 per cent. These figures are affected by the transfer of pay-roll tax to the States from September 1971. Adjusted to remove the effects of this transfer, total receipts are estimated to increase by 8. 1 per cent in 1972-73 compared with an adjusted increase of 1 3 . 0 per cent in the previous year. The substantial reduction in personal tax rates in 1972-73, following as it does a decrease in the rate of levy on personal income tax late in 1971-72, will add substantially to disposable incomes in Australia and should provide a significant stimulus to demand. o Significant increases in social service and other benefits announced in the Budget Speech, taken together with the large taxation concessions announced in the budget, are estimated to result in an excess of outlays in Australia over revenue collected in Australia. The budget domestic deficit for 1972-73 is estimated at $60 million. This compares with a domestic surplus of about $387 million in 1971-72. Thus, in contrast to last year, it is expected that budget domestic outlays and receipts this year will add moderately to liquidity, rather than subtract from it. *Budget Estimates in 'Conventional' Terms* The following table summarises the estimates for 1972-73 and actual expenditures and receipts for 1971-72 in so-called 'conventional' terms. The main elements in the estimated change in expenditures in 1972-73 and the actual change in expenditures in 1971-72 are indicated in the following table: - Features of the estimates are: - o The large prospective increase of $395 million in payments to or for the States and works and housing programmes. Of this increase a total of $218 million relates to additional financial assistance grants and increased works and housing programmes agreed at the Premiers' Conference and Loan Council meetings in June 1972. At these meetings it was also announced that the monthly rate of grants for nonmetropolitan unemployment relief would be increased. The provision included in the budget for these grants is $45 million greater than expenditure for these purposes in 1971-72. Comparisons with the increase in payments to or for the States in the previous year are affected by the arrangements under which pay-roll tax was transferred to the States. The proposed increases of $326 million in expenditure from the National Welfare Fund and $36 million in expenditure on repatriation services. Measures announced in the Budget Speech account for $183 million of these increases, while the full-year effects of increases in benefit rates and other measures announced in the 1971-72 budget and subsequently during that year are estimated to add a further $1 1 1 million to expenditures in 1972-73. The increase in expenditures under these headings would have been larger but for variations in the number of pension and child endowment pay-days between the two years. An estimated increase of $106 million in expenditures on defence services. The size of the increase is diminished by the occurrence of one less pay-day in 1972-73 than in 1971-72. A large part of the estimated increase relates to purchases of defence equipment and stores. The proposed increase of $62 million in departmental running expenses. This compares with an increase of S97 million in 1971-72, about $17 million of which resulted from the occurrence of an additional pay-day in that year. o The estimated decrease of $35 million in Commonwealth payments to industry. Wool deficiency payments are estimated to be $52 million less than in 1971-72, reflecting the improvement in the market for wool. In addition, wheat stabilisation payments will be made in respect of only one year's wheat pool in 1972-73; in 1971-72 payments were made in respect of both the 1969-70 and 1970-71 pools. *o* An estimated increase of $74 million in 'other expenditures', which incorporates a number of the new policy measures and increased provisions announced in the Budget Speech. Examples include increased numbers of Commonwealth scholarships, assistance for child care centres, new and expanded employment training schemes and an increased provision for Aboriginal advancement. Further details of the estimates of expenditure for 1972-73 are given in Statement No. 4. Before taking account of the revenue measures announced in the Budget Speech, and on the basis of an ongoing levy of 2£ per cent on personal income taxation, it is estimated that total Commonwealth receipts would have increased by $1,036 million or 11 .7 per cent in 1972-73. This includes an estimated increase of $992 million or 12.7 per cent in taxation revenues. Comparisons with increases in previous years are affected by the transfer of the pay-roll tax to the States. After taking account of this factor, the increase in total receipts on the basis outlined above would be slightly less than that which occurred in 1971-72. This arises in part from the fact that rates of taxation were increased in the 1971-72 budget. The assumed increases in average earnings and employment would be expected to produce a substantial increase in pay-as-you-earn instalment deductions under the existing taxation provisions, including the personal income tax levy of 2£ per cent. In addition, pay-as-you-earn refunds are estimated to decrease in 1972-73, one factor being the effect of the variations made to tax instalment schedules in 1970-71 and 1971-72. Net pay-as-you-earn income tax collections are estimated, on this basis, to increase by $751 million or 26 per cent. The recovery in primary producers' incomes in 1971-72, together with increases in other business incomes subject to tax in 1972-73, would also result in a substantial increase in income tax collections from individuals subject to provisional tax. However, company income subject to tax is estimated to have increased only modestly in 1971-72, with the result that collections of income tax from companies in 1972-73 are expected to show only a modest increase over 1971-72 collections. Continued growth in private sector expenditures, including a higher rate of importing, is .expected to produce increased revenue from indirect taxes. However, the rate of growth in excise duty revenues, in particular, is affected by duty rate increases which were announced last year. The proposed revenue measures announced in the Budget Speech are estimated to reduce receipts by a net $434 million in 1972-73 and $583 million in a full year. These measures and their estimated revenue effects are shown in the following table: After taking account of the effects of these proposed changes, total Commonwealth receipts are estimated to amount to $9,447 million, which is $602 million or 6.8 per cent greater than in 1971-72. Further details of the estimates of receipts are given in Statement No. 5. *Summing Up* The budget is aimed at providing a stimulus sufficient to result in the present slack in the use of labour and other resources being taken up during the course of the year, but not so much as to bring about a re-emergence of excess demand pressures. Although the budget provides for large increases in outlays on social welfare and in payments to or for the States, overall outlays have been held to much the same rate of increase as last year. The budget is designed, rather, so that the major stimulus to the economy will be imparted through the very substantial reductions in personal income taxation rates. As well as relieving the tax burden, the aim is to stimulate private sector activity without at the same time adding unduly to the rate of growth in public sector expenditure Overall, the growth in outlays and the taxation concessions announced in the Budget Speech will result in a substantial increase in the budget deficit to about $630 million. Outlays *within* Australia are estimated to exceed receipts *within* Australia by approximately $60 million, thus resulting in a budget *domestic* deficit for the year. The estimated domestic deficit will, in itself, add to private sector liquidity for the year as a whole. The net effects on liquidity of the Commonwealth's transactions will, however, also depend on the Commonwealth's financing transactions during the year. The effect on liquidity of the domestic deficit will not be uniform throughout the year, largely because of the seasonality in tax collections. Thus, in the first half of the financial year there will be a large temporary budget deficit which will add substantially to private sector liquidity during that period. During the second half of the year the budget will move into surplus as tax payments are made and this will withdraw liquidity from the economy. It is to be noted, of course, that the liquidity situation will.be affected by factors other than the Commonwealth's transactions, notably by developments in the external sector. The monetary and financial aspects of the budget are more fully discussed in Statement No. 3. STATEMENT No. 2- THE BUDGET AND THE ECONOMY The Budget Estimates in National Accounts Form {:#subdebate-62-1} #### General The influence of the Commonwealth budget upon trends in the economy may usefully be considered as operating through the effects on incomes and expenditures transmitted by changes in particular types of budget outlays and receipts and through the effects of the budget and its financing upon liquidity in the economy. Moreover, the budget may affect private sector expectations about economic prospects. This statement is devoted primarily to an examination of the first of these transmission mechanisms, although some reference is made to the possible effects of the budget upon private sector expectations. Statement No. 3 presents an examination of the implications of domestic budget transactions for Australian monetary conditions. The economic effects of particular classes of outlays and receipts differ significantly from one another. On the outlay side, it is particularly important to distinguish between domestic and overseas outlays. This distinction must be made because the immediate effects of overseas outlays are on the balance of payments, f1) while domestic outlays have their substantial effects upon domestic economic activity. There is also an important distinction to be made within domestic outlays between expenditures on goods and services, on the one hand, and transfers and advances from the budget, on the other. This further distinction is important because government expenditures on goods and services add directly to demand within the economy, while the impact on demand of transfers and advances depends upon their effects on the spending of the recipients. (2) As with outlays, differences exist between the various taxes and charges in terms of their economic effects. These differences pertain both to the magnitude of their effects upon real expenditures and prices and to the time lags between implementation and effect. There is a further and fundamental distinction, which is of particular significance on the revenue side, to be made when assessing the effects of budgetary measures. This is the distinction between the revenues which would have been collected with unchanged tax rates and charges, and the estimated collections allowing for any changes in rates and charges contained in the budget. Changes in revenues in the former class result from changes in the economy which affect the bases on which taxes are levied. (3) The latter class, however, also includes the effects on revenues of any changes in rates and charges. Changes in revenue of the first kind, of course, exert an influence upon economic activity. However, only changes in revenue arising from changes in rates and charges can be considered as stemming from the independent influence of policy measures upon the economy and as capable of influencing trends in the economy which would otherwise be expected to emerge. In contrast, the existing tax structure is part of the complex of factors producing presently forseen trends and therefore cannot be seen as capable of offsetting them. By convention then, only changes in revenue of the discretionary type are considered as part of the impact of the budget. (') 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 il 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 *I* on page 9 of the Supplement to the Treasury Information Bulletin, entitled 'National Accounting Estimates of Public Authority Receipts and Expenditure', being published concurrently with the Budget. (*) It is also important to distinguish, in practice, between different types of transfers and advances, because of the differences which may exist between the ways in which the amounts are spent by the various recipients of these budget outlays. (*) For the most pan, movements which would be expected in gross collections of P.A.Y.E. instalment deductions, indirect taxes and the income of public enterprises, at existing rates and charges, fall within this class. Collections of income tax from individuals subject to provisional tax and from companies are also of this type although in these cases past movements are also involved The distinction made above is blurred somewhat due to changes in " effective " rates of tax which are themselves the product of changing economic trends. In particular, due to the progressive nature of the income tax scale, as income rises the average, or effective, rate of tax will increase. Similarly, since different classes of goods are subject to different rates of sales and excise taxes, changes in the composition of sales will yield changes in the overall effective rates of sales and excise taxes. While changes of this sort therefore involve changes in effective rates of tax they are, again by convention, classified as arising from economic trends rather than policy measures^1) in order fully to evaluate the influence of budget outlays and receipts upon economic conditions, consideration must be given not only to the *impact* effects of these measures but also to the *subsequent* economic effects which arise because of the complex interrelationships between different sectors of the economy. The latter effects inevitably require some time to develop , to assess them fully requires consideration of the timing of budget transactions and the time lags associated with the subsequent effects which flow from them. The significantly different impact effects of various categories of outlays and receipts have been referred to above, lt is important to point out that the time required for these subsequent changes to have effect also varies between different categories. Finally, it might be reiterated that the influence of a particular budget upon the economy and the appropriateness of that influence, can only be evaluated by relating the budget in question to the particular economic context to which it applies. The presentation of budget outlays and receipts in national accounts form facilitates the analysis of the relationship between the budget and the economy as a whole. The following analysis accordingly utilises budget figures expressed in national accounts form. {: .page-start } page 62 {:#debate-63} ### PROSPECTS FOR 1972-73 *The Effects of Changes in Budget Outlays and Receipts* The 1972-73 Budget has been formulated in the context of an assessment of economic prospects throughout the following twelve months. The budget, however, is only one of many major influences upon economic developments, and any assessment at this point of economic prospects in 1972-73 must be subject to a degree of uncertainty. Unforeseen developments arising either from domestic or overseas influences may result in the need for corrective policy action at some future date. Flexibility in economic policy is, for these reasons, of obvious importance. Although the economic effects in 1972-73 of the expansionary policy measures announced during the course of 1971-72 will be significant, the latest assessment of economic prospects for this financial year suggests that further stimulus to the economy is warranted - particularly in relation to consumption demand. The magnitude of the desirable stimulus - either through increased outlays or in terms of revenue forgone - depends, of course, upon the expected trends in the economy, relative to the likely availability of resources, in the absence of new policy measures. The total cost to the budget of the policy measures required to produce that stimulus will in turn depend upon the particular measures adopted, because, as already discussed, different outlays and receipts have different economic effects. Accordingly, the cost to the budget of imparting a given stimulus to the economy would be somewhat higher if that stimulus were to be produced through increases in transfers and advances or reductions in taxation than if it were sought through increased expenditure on goods and services. (') 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, bc corrected fully or quickly by fiscal or monetary means. Should average earnings rise by less than assumed in compiling budget estimates, taxation revenue would for that reason tend to be less than estimated and a larger budget deficit would tend to emerge (although the extent of the increase in the budget deficit would not reflect 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 rose more slowly than assumed). It would not follow, however, that the budget objective of maintaining an environment conducive to balanced economic growth would be affected adversely by such a development The magnitude of the direct effects of increases in budget domestic outlays or receipts is, of course, only one of a number of factors which must be considered. For example, a stimulus affecting a particular sector rather than a general impetus to aggregate demand, may be required. As noted above, one area which - on present indications - requires stimulus in 1972-73 is consumption demand. Accordingly, increases in transfer payments - particularly increased pensions - and reduced personal income taxation rates, which may be expected to exert much of their economic impact through increased consumption demand, are features of the 1972-73 Budget. In the 1972-73 Budget measures relating to National Welfare Fund and repatriation benefits alone are estimated to add over $183 million to domestic outlays while it is estimated that a net $436 million of revenue will be forgone as a result of the taxation measures announced in the Budget Speech. The following table reflects, inter alia, the effects of the new expenditure measures adopted in the 1972-73 Budget upon the composition of domestic outlays: {: .page-start } page 63 {:#debate-64} ### COMMONWEALTH BUDGET- DOMESTIC OUTLAYS The relatively rapid increases in estimated cash benefits to persons and transfers and net advances to States as proportions of total domestic outlays in 1972-73 are notable. The taxation measures proposed in the 1972-73 Budget have been formulated, for the most part, to stimulate private sector spending. This applies particularly to the decisions to increase the minimum taxable income for individuals from $417 to $1,041 per annum, the increase of $52 per annum in the dependants' allowances, and the decision to reduce rates of personal income tax payable by an average of 10 per cent. These and other measures are also intended to benefit the family man and lower and medium income groups. {:#subdebate-64-0} #### Review The Budget is the main vehicle for fiscal policies aimed at demand management and is particularly important, therefore, in relation to short run economic objectives. Budgets, of course, have other and wider objectives and, moreover, even in relation to short run economic objectives, cannot be framed in terms of achieving precise targets. The nature of economic phenomena precludes this. None the less, in the present economic context, in which a degree of tinder-utilisation of resources exists, the objective of stimulating demand assumes relatively greater importance than may be the case at other times. The new measures announced in the Budget Speech will add significantly to the growth of gross national product in 1972-73. Overall, before adjustment for special factors, domestic outlays are estimated to increase by $1,065 million. This increase arises from a variety of sources, including the rising cost of existing programmes. A significant factor contributing to the increase is the cost of measures adopted during 1971-72, including those decisions announced at the Premiers' Conference and Australian Loan Council Meetings in June. The most important source, however, of increased outlays is the new measures announced in the Budget Speech. The new taxation measures announced in the Budget Speech are estimated to reduce revenue by $436 million. The effects of these measures on spending cannot be precisely quantified, not least because the effect they have on expectations and business and community psychology makes mechanical calculation vulnerable to error. However, it is clear that the 1972-73 Budget will both add directly and substantially to spending in the economy, and particularly to consumer spending and will also encourage private sector expectations of an increased rate of growth and employment during 1972-73. In this way, the 1972-73 Budget should contribute to an improvement in private sector confidence. To summarise: the Budget is quite strongly stimulatory. Although the full effects will not be felt immediately, there will be a significant impetus given to spending, particularly to consumer spending, and the economy should resume a strong growth path during 1972-73. 1970-71 1971-72 1972-7.1 Estimate Outlay - Net expenditure on goods and i Current expenditure - Defence Repatriation Development of resources and assistance to industry Civil aviation Immigration Law, order and public safety Education Health and welfare Foreign affairs All otherfa) Capital expendilure(A)Public enterprises - Houses and Rats Other .. General and government - Transport Other . Total net expenditure on goods and services Transfer payments - Cash benefits to person? Grams to Statestc) Interest paid Transfers overseas Subsidies<iO Grant; for private capital purposes Total transfer payments Total expenditure Net advances - to States - Works purposes Housing Other to Commonwealth authorities - Post Office S.M.H.E.A. Airlines Other to Oilier Sectors - by War Service Homes Other Total net advances Total Outlay . Receipts- Taxation - Indirect taxestd) Income taxes on companies Income taxes on persons - P.A.Y.P.. Other Estate and gift duties Other direci faxes, fees, fines, etcU > Total taxation Other receipts - Interest, rent and dividends, etc. Gross income of public enterprises Net sales of existing assets(A) . . Total other receipts Total Receipts Deficit__ .. $ million 1,069 92 177 43 60 20 57 80 35 343 9 34 76 105 1,771 2,207 576 183 309 37 36b 126 28 247 27 20 46 17 30 2,502 1,444 2.432 743 78 47 800 60 1.976 $ million {: type="1" start="1"} 0. 13b 108 198 50 51 25 69 95 41 405 40 62 120 2,178 222 $ million 1.244 119 218 55 54 27 82 110 45 451 249 200 2.401 2,055 2,373 616 205 382 43 2,417 2,716 649 234 338 56 5,084 5,674 7,284 8,075 i20 140 47 533 53 270 16 52 37 17 47 S87 375 64 586 58 288 10 {: type="a" start="e"} 0. 37 52 23 43 907 1.025 8.190 9.101 2,525 1,535 2.88') 876 76 58 2.620 1,564 3,278 926 75 63 7.245 870 385 62 7.959 954 <Sl 938 65 2 8,115 8,914 75 187 {: type="a" start="a"} 0. Includes current expenditure of the Australian Broadcasting Commission. In tables in this series prior to tbe 1971-72 Budget trie Commission was treated as a public enterprise. {: type="1" start="6"} 0. Consisting of fixed capital expenditure on new assets *plus* increase in stocks *less* sales of previously rented houses. 1. An interest-free capital grant of $200 million in 1970-71, S219 million in 1971-72 and $249 million in 1972-73 under the works programme is included in 'Grants to States'. *(/I)* Following the transfer of the pay-roll tax to the States, the export incentive scheme will operate in respect of exports in 1971-72 and subsequent years through direct payments from the Commonwealth, not by way of rebates of pay-roll tax. To facilitate year to year comparisons, figures for 'Indirect taxes' have been adjusted to include pay-roll tax collections on a gross basis. 'Subsidies' have been adjusted by corresponding amounts to include rebates of pay-roll tax under the export incentive scheme. («) Includes advance to Australian National Airlines Commission in connexion with revised superannuation arrangements, $25 million. (/) Includes broadcasting and television licence fees paid by private persons. Broadcasting and television licence fees paid by producers are included in 'Indirect taxes'. 2. Includes payment by Australian National Airlines Commission in connexion with revised superannuation arrangements, $21 million. tfr) Excludes sales of previously rented houses. *See* footnote (4) above. {: .page-start } page 66 {:#debate-65} ### STATEMENT No. 3- THE BUDGET AND MONETARY CONDITIONS {:#subdebate-65-0} #### General The economic impact of the budget is not restricted to the direct influence on expenditure and income discussed in Statement No. 2. The budget can also have significant effects on economic activity through its influence on monetary conditions. The monetary effects of the budget can usefully be divided into two broad components. First, there is the direct impact of budget receipts and outlays on liquidity and the money supply. This can be measured by the budget domestic surplus or deficit - that is, the excess or shortfall of receipts in Australia over outlays in Australia. A domestic surplus, other things being equal, involves a withdrawal from the volume of money of an equivalent amount ; a domestic deficit adds an equivalent amount to the volume of money. The budget's monetary impact, however, is not determined only by the size of the domestic surplus or deficit but also depends importantly on the monetary effects deriving from the Commonwealth's domestic financing transactions. The Commonwealth's financing transactions - together with Reserve Bank open market operations- have a major impact on the volume and composition of financial assets in the economy and may have a significant influence on the cost and availability of funds through direct and indirect effects on interest rates and the value of financial assets. Measurement of the monetary effects of financing transactions must take into account not only the movements in total holdings of Commonwealth securities which may occur over a period but also the types and maturities of those securities and the classes of institutions or persons holding them. In particular, it is important to distinguish between changes in holdings of government securities by the banking system and by the non-bank private sector. An increase in the holdings of Commonwealth securities by the latter group operates to reduce the volume of money while a reduction in these holdings has the opposite effect. An increase in the holdings of the banking system does not in the same way directly affect the volume of money or the total - as distinct from the components - of the L.G.S. assets which constitute the general banking system's liquidity base. Changes in holdings of government securities by particular groups are not, of course, solely the result of the budget. These changes may be affected by the market operations in government securities of the Reserve Bank and by all of the other factors affecting monetary and liquidity conditions generally. The stance of monetary policy, especially in regard to official interest rates and controls on the banking system, will have a particularly important influence on monetary and financial conditions. Other important factors influencing such conditions include the private sector's international trading and borrowing; Reserve Bank transactions with the private sector such as Rural Credits Department advances; and the activities of financial intermediaries, particularly the lending activities of the general banking system. All these various influences are significantly inter-related and the effects of the Commonwealth's transactions on monetary conditions cannot be considered in isolation^1) (') A detailed analysis or the monetary effects of the budget is contained in the 'Supplement to the Treasury Information Bulletin "National Accounting Estimates of Public Authority Receipts and Expenditure" August 1967*. {: .page-start } page 67 {:#debate-66} ### THE FINANCIAL YEAR 1971-72 The analysis of the influence of the Commonwealth's budgetary transactions and other factors on monetary conditions can most conveniently be framed in terms of a money formation table'. The following table provides such an analysis for each half of 1971-72 and for the two preceding years. Liquidity and the Volume of Money - Analysis of Formation Factors S million(o) *la)* Movements except for budget domestic surplus/deficit. *lb)* Includes movements in miscellaneous Reserve Bank accounts, net Commonwealth budgetary transactions in Papua New Guinea and some additional miscellaneous items. The Commonwealth budget domestic surplus withdrew about $387 million from private sector primary liquidity and the volume of money over the 1971-72 financial year. This was very much less than the $630 million estimated at the time of the budget and was the smallest domestic surplus since 1968-69. The reduction in the size of the domestic surplus from that originally provided for reflected in large part the effects of the various budgetary measures taken during the year which, apart from their direct influence on expenditure and income, also had significant liquidity-increasing effects. These effects were consistent with and reinforced the easier stance adopted for monetary policy during the year. The easier stance of monetary policy was reflected, inter alia, in the significant reductions which occurred during the year in yields on Commonwealth securities. These yield reductions notwithstanding, however, there was a substantial increase of $713 million in the holdings of Commonwealth securities by the non-bank private sector. The strength of this increase appears to have been due in significant part to the generally easy monetary conditions which prevailed for most of the year and which emanated largely from the strong growth in the surplus on private sector foreign exchange transactions, as reflected in Reserve Bank holdings of gold and foreign exchange. The strong growth in overseas reserves, related to both a high rate of private capital inflow and a substantially reduced current account deficit in the balance of payments, was the major factor contributing to the very strong increase of about $1,410 million in private sector primary liquidity during 1971-72. This, together with the reduced Commonwealth budget domestic surplus and the various other factors affecting monetary aggregates resulted in an increase in the volume of money of 10.5 per cent in the year. As shown below this was a substantially larger increase than has been experienced in recent years. While the foregoing summarises the full-year monetary effects of the Commonwealth's budgetary and financing transactions, the seasonality in such transactions means that these effects can vary markedly during the year. During the first half of 1971-72 Commonwealth budgetary transactions resulted in a domestic deficit of about $1 ,270 million and added substantially to private sector liquidity. At the same time, private capital inflow into Australia, which had run at high levels in the final quarters of 1970-71, continued at a high rate. The strong growth in liquidity reflected itself, in part, in the fast growing money supply but in part, also, in a strong demand for government securities by the non-bank private sector. Overall, financial conditions eased significantly. These easier financial conditions were also facilitated by the easier stance of monetary policy. In October 1971 the banks were informed that there would be no objection to some increase in their level of lending and this was followed in December by a large release from Statutory Reserve Deposits and the removal of all official restraints on bank lending. Yields on government securities had also fallen significantly by the end of December. During the six months to December 1971 the volume of money increased by 7.7 per cent compared with 5.8 per cent in the six months to December 1970. In the second half of 1971-72 the Commonwealth's budgetary transactions resulted in a domestic surplus of about $1,660 million. The effects of this large surplus on liquidity conditions were, however, very substantially offset by a continued high level of private capital inflow and a marked strengthening in the current account of the balance of payments. In addition, further monetary policy action was taken in February. Yields on government securities were again lowered with the objective of ensuring that financial conditions were not a restraining factor on the economy during the period of normal seasonal contraction in liquidity. In the event, the contraction in liquidity towards the end of the year did not cause difficulties in financial markets and 1971-72 closed with the private sector in a relatively liquid situation and with financial intermediaries in a position to significantly expand their lending. During the six months to June 1972 the volume of money increased by 2.6 per cent compared with 1 .0 per cent in the six months to June 1971. Details of changes in holdings of Commonwealth debt in each hall of 1971-72 and in the two preceding years are shown in the following table. {: .page-start } page 69 {:#debate-67} ### PROSPECTS FOR 1972-73 There are, as usual, many uncertainties in the way of predicting the course of monetary conditions over the year ahead. This, however, applies particularly in the current situation of international monetary uncertainty. The budget for 1972-73 as a whole is estimated to produce a domestic deficit of the order of $60 million. This is in contrast to the domestic surpluses of recent budgets and other things being equal, this should facilitate further strong growth in private sector liquidity and the volume of money. As suggested above, monetary conditions in 1972-73 will also depend importantly on the outcome in respect of private sector international trading and financing and in part on the demand for government securities. An important influence on this latter factor, as well as on other factors influencing monetary conditions, will be the stance adopted for monetary policy during the year. {:#subdebate-67-0} #### Financing Transactions The following table'summarises the budget financing transactions in 1971-72. Explanatory comments on these transactions are given in Statement No. 6. {: type="a" start="n"} 0. Includes State domestic loan raisings. {: type="1" start="6"} 0. Includes Treasury Notes issued to the Reserve Bank to finance advances to the Australian Wheat Board. 1. Includes amounts available to the Commonwealth from funds obtained from coinage and bullion transactions, amounts borrowed by Commonwealth trust accounts, and amounts available from moneys held m trust. 2. A negative sign indicates an increase in cash balances. In 1972-73, Commonwealth expenditures are estimated to exceed very substantially Commonwealth receipts from taxation, charges and other sources, and the resulting deficit is estimated to be $630 million. Drawings under credit arrangements with the Export-Import Bank of the United States of America for defence purposes are estimated at $71 million with repayments of previous drawings amounting to $67 million. However, repayments of previous loans raised to finance advances to Qantas Airways Limited and the Australian National Airlines Commission are estimated at $38 million, $13 million more than new drawings expected in 1972-73. A net reduction in Commonwealth indebtedness overseas is expected in 1972-73. A borrowing of 10,000 million yen (approximately $28 million) for general purposes was made in Japan in July 1972, but no other overseas borrowings for general purposes are at present in prospect. Redemptions of maturing loans in London and New York and other commitments on overseas loans are estimated to amount to $84 million in 1972-73. On this basis, the amount to be financed in Australia would be greater than the estimated deficit of $630 million. The value of securities due to mature in Australia during 1972-73 held in non-official hands at 30 June 1972 is estimated at $507 million (including Special Bonds $71 million), compared with $722 million (including Special Bonds $53 million) of securities maturing in 1971-72 which were in non-official hands at 30 June 1971. Net loan proceeds and the net change in the Treasury Note issue in Australia cannot, however, be accurately estimated in advance. Nor can the changes that may occur in holdings of Commonwealth securities by the public, on the one hand, and by the banking system, on the other, be predicted accurately. {: .page-start } page 71 {:#debate-68} ### STATEMENT No. 4 - ESTIMATES OF EXPENDITURES, 1972-73 Commonwealth expenditures are estimated to increase by $1,045,348,000 or 11.6 per cent, to $10,077,606,000 in 1972-73. Year-to-year comparisons have been affected by accounting changes and other factors, including the occurrence in 1971-72 of an additional public service and pensions pay day, and the occurrence in 1972-73 of one extra twelve-weekly child endowment payment. The largest effect derives from the transfer of the pay-roll tax to the States from 1 September 1971, which altered financial assistance grants payable to the States, as well as pay-roll tax revenue figures. Details of the arrangements governing the transfer of pay-roll tax to the States are set out in the document 'Commonwealth Payments to or for the States 1972-73' presented concurrently with the Budget Speech, and the effects of the transfer on the figures are discussed in Statement No. 7. The estimates for 1972-73 are compared in summary form with actual expenditures in 1970-71 and 1971-72 in the following table : («) The figures for 1970-71 and 1971-72 have been adjusted for minor accounting changes to place them on a basit com pa rabi* *ith the estimates for 1972-73. Tables setting oui the composition of the various items of expenditure and notes on the main variations follow. Item No. 1 - Defence Services Total expenditure on Defence Services is expected to increase in 1972-73 by 5105,925,000. Pay and salary costs are expected to increase by $19,391,000 after allowing for the fact that there will be one pay day less in 1972-73 than in 1971-72. The main reasons for the expected increase are the full-year effects of the implementation of the Kerr Committee recommendations, the costs of awards and determinations made in 1971-72 and the expected changes in the strengths of the Forces and of civilian staffs of departments in the Defence Group. Other increases in estimated expenditure include $41,966,000 for the purchase, manufacture and lease of aircraft for the R.A.N, and the R.A.A.F., $19,303,000 for equipment and stores for the R.A.N, and R.A.A.F., $17,168,000 for accommodation and technical facilities and SI 1,455,000 for Naval construction. Expenditure on forces overseas (other than pay) by the Army and the R.A.A.F. is expected to decrease by $8,714,000, whilst expenditure on arms, armament and equipment for the Army is expected to be $21,909,000 less. *Defence* Salaries are estimated to increase by $664,000 mainly as a result of the full year effect of Public Service salary increases awarded in 1971-72. The increase of $2,281,000 in administrative expenses is due mainly to an accelerated programme involving the engagement of contractors to assist in cataloguing defence stores and equipment. Defence aid on existing programmes in respect of Malaysia and Singapore is expected to increase by $2,936,000, whilst defence aid to South Vietnam is expected to cost $1,116,000 less. Defence co-operation wilh Indonesia, a newly approved project, is expected to cost $3,800,000 in 1972-73. *Navy* Expenditure on pay and salaries is estimated to increase by $7,016,000 due to the effects of the Kerr Committee recommendations, arbitration and other pay and salary determinations in 1971-72 and expected increases in strengths in 1972-73. Expenditure on Naval construction is expected to increase by $1 1,455,000, whilst the programme for repairs and maintenance of ships and aircraft is estimated to involve an additional $3,829,000. Purchase and manufacture of aircraft is expected to increase by $3,673,000 largely as a result of the decision to purchase new helicopters. Estimated expenditure on general stores is $15,446,000 more than in 1971-72 due mainly to increased expenditure on ammunition, equipment and spares for naval aircraft, and maintenance stores for H.M.A. ships. *Army* The main factors contributing to the expected increase of $7,043,000 in pay and salaries are the full year effects of pay rises in 1971-72 resulting from the recommendations of the Kerr Committee and arbitration and other determinations made in 1971-72. The forecast reduction of $21,909,000 in arms, armament and equipment and $6,773,000 in maintenance of forces overseas reflects, in the main, the reduced activity consequent upon the withdrawal of the Army component from Vietnam. Expenditure on accommodation and technical facilities is expected to increase by $7,224,000, mainly to provide for increased housing requirements and increased repairs and maintenance. *Air* The estimated increase in expenditure includes $2,007,000 for pay and salaries, due to similar factors as apply to other Services. Expenditure on aircraft purchase, manufacture and lease is expected tobe $36,293,000 greater, reflecting the increased payments expected to be made on the Fill-C aircraft and medium-lift helicopters. The principal reason for the estimated increase of $4,057,000 for equipment and stores is expected delivery of aircraft spares. The effect of the withdrawal of the R.A.A.F. from Vietnam is reflected in the expected reduction of $1,941,000 in maintenance of forces overseas. Expenditure on accommodation and technical facilities is expected to increase by $6,782,000. *Supply* The increase in expenditure by the Department of Supply on civil salaries is estimated at $2,431,000, reflecting the full year effect of determinations and awards in 1971-72. Expenditure on furniture removals, vehicles and storage is expected to be $1,951,000 greater than in 1971-72. Production development and assistance expenditures are estimated to increase by $5,014,000 reflecting production of the Nomad aircraft, continuation of the light observation helicopter production programme and other developmental projects. *General Services* The Government contribution to the Defence Forces Retirement Benefits Fund is expected to increase by $1,998,000 and interest payments on loans raised in the United States of America for defence equipment purchases by $578,000. Increased expenditure on civil defence, the administration of the National Service Act and vocational training for discharged National Servicemen require an additional $725,000. {:#subdebate-68-0} #### Defence Expenditure Overseas Defence expenditure overseas is expected to be $217,000,000, or $41,000,000 more than in 1971-72. During 1971-72 payments continued overseas on such aircraft projects as the Tracker, Skyhawk and HS748 aircraft for the R.A.N. and the FI 1 1-C, Mirage and Macchi for the R.A.A.F., on other capital items including the Oberon class submarines and on maintenance of forces overseas. The foregoing figures do not include defence expenditure in Papua New Guinea or on defence aid for overseas countries. Defence expenditure overseas includes payments for material and equipment financed under the credit arrangements with the United States of America authorised by the Loan (Defence) Acts 1966, 1968, 1970 and 1971: Repayments of principal under these loans amounted to $62,630,443 in 1971-72 and are expected to amount to 866,340,000 in 1972-73. 1970-71 Actual 1971-72 Actual I972-7J Estimate General Revenue Payments - Financial Assistance Grants Special Grants Special Revenue Assistance Total General Revenue Payments . . Specific Purpose Payments of a Revenue NaturePayments under the Financial Agreement - Interest on State Debts Sinking Fund on State Debts Debt Charges Assistance Universities Colleges of Advanced Education Independent Schools . . . . Research Grants . . Blood Transfusion Services . . . . Home Care Services Senior Citizens Centres Paramedical Services Housing Grants Road Safety Practices Natural Disaster Payments Non-metropolitan Unemployment Relief Grants Agricultural Extension Services Minor Agricultural Research Cattle Tick Control Bovine Brucellosis and Tuberculosis Eradication Coal Mining Industry - Long Service Leave Supervision of Apprentice Training Total Specific Purpose Payments of a Capital NatureUniversities Colleges of Advanced Education Teachers Colleges Pre-School Teachers Colleges Science Laboratories Technical Training School Libraries Capital Grants for Government Schools. . Mental Health Institutions Tuberculosis Hospitals Senior Citizens Centres Nursing Homes Dwellings for Aged Pensioners. . Natural Disaster Payments Softwood Forestry Brigalow Lands Development - Queensland Bundaberg Irrigation Works- Queensland Cressy-Longford Irrigation Scheme - Tasmania Ord River Irrigation Project - Western Australia Water Resources Investigations/Measurements Water Supply - Western Australia Flood Mitigation- New South Wales Salinity Reduction - Victoria Fairbairn Dam - Queensland Copeton Dam - New South Wales King River Dam - Victoria Pike Creek Dam- New South Wales-Queensland Tailem Bend Pipeline- South Australia . . Millewa Pipeline- Victoria Dartmouth Dam - New South Wales. Victoria, S.A. Commonwealth Aid Roads Grants Beef Cattle Roads Byre Highway- Sealing Railway Standardisation Projects Bell Bay Railway- Tasmania Hydro-electric scheme- Tasmania Gladstone Power Station- Queensland . . Natural Gas Pipeline- South Australia . . Grassy Harbour- Tasmania Western Australia-DarwiniShipping Service Tourist Attractions Other Total Total Specific Purpose Payments Works and Housing Programmes - Interest-free Capital Grant , . Advances .. Total Works and Housing Programmes Total Payments to or for the States and Works and _ Housing Programmes $'000 1,418,518 18,680 43,000 1,480,198 15,170 24.550 11,504 58,877 15,743 24,253 4,170 845 318 3 150 9,944 4,985 68 388 1,421 1.416 173,806 16,346 14,837 2,470 856 13,062 12,535 13,257 4,199 469 84 337 4,981 9,978 4,784 300 1,900 200 5,847 2,622 1,792 1,098 25 4,785 5,750 2,000 1,500 218,000 8,985 7.607 3,211 2,250 252 366,319 $40,124 200,000 623,000 823,000 $'000 1,440,878 23.800 (a)72,500 S'000 1.653.600 38.600 1,537,178 1,692,200 15,170 26,323 23.008 67,596 18,372 29,594 4,341 990 491 12 7 4,000 150 1,188 26,999 5,679 102 450 2,404 1,737 15.170 27,312 34,512 74.474 24.550 41.100 5.7TS 1.170 730 25 19 6,750 150 72,000 6.300 134 486 4,000 2,082 218 228,612 316.957 23,002 15,641 11.153 631 10,824 7,411 9,780 6,660 4,207 438 268 460 7,622 5,844 389 1,050 3,250 449 4,760 1,864 2,000 923 22 5,530 4,500 212 1,500 245,250 10,150 3,012 3.094 2,500 1.750 724 20,502 18,943 16,378 534 10,824 12.176 9.707 13.340 5.000 392 500 1.600 6,471 9,215 1.000 5,500 101 1.293 3,736 158 1,200 38 2,000 4,000 92 842 1.040 500 1.500 279.000 8.760 625 1.750 1.156 14,000 1,158 2,500 250 548 396,870 458.300 625,482 77S.257 219,100 672,900 248.539 733,461 892,000 982,000 2.843.321 3,054.660 3/49.437 This item includes payments in the nature of financial assistance to or tor the States, except payments to the States Tor the maintenance of tuberculosis hospitals and payments under the *Stales Grams (Deserted* Wives) *Act* 1968, 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 Number 10 - Other Expenditures. It also includes interest-free capital grants to the States to finance pari of their non-revenue producing works, and advances to the States for works and housing under the Loan Council borrowing programmes for State works. Further details of the various payments are given in the White Paper 'Commonwealth Payments to or for the States 1972-73'. In 1972-73 Commonwealth payments to or for the States and works and housing programmes are estimated to total $3,449,437,000- an increase of $394,797,000 or 12.9 percent. Year-to-year comparisons are, however, affected by the arrangements under which pay-roll tax revenues were transferred to the States as from I September I97t. {:#subdebate-68-1} #### General Revenue Payments General revenue payments are estimated to increase by $155,022,000. The estimated increase in the financial assistance grants of $212,722,000 is affected by the arrangements under which pay-roll tax revenues were transferred to the States in 1971-72. Under these arrangements, these grants were reduced to offset most of the loss in Commonwealth budget revenues resulting from the transfer. Of the total increase in financial assistance grants, an amount of $128,000,000 represents additional grants which were agreed at the June 1972 Premiers' Conference. The remainder of the estimated increase arises from the operation of the formula under which these grants increase each year Special grants paid on the recommendation of the Commonwealth Grants Commission ure estimated o increase by $14,800,000. In 1971-72 special revenue assistance payments totalled $72,500,000, including a special advance of $17,500,000 to New South Wales. No provision has been made in the budget for special revenue assistance to the States in 1972-73 *Specific Purpose Payments* of *a Revenue Nature* Specific purpose payments of a revenue nature are estimated to be $88,346,000 greater than in 1971-72. Under the Financial Agreement an amount of $15,170,000 is paid annually by the Commonwealth to the States towards interest payable by the States. The Commonwealth also makes contributions to the States' Sinking Funds; these contributions are expected to increase by $989,000 in 1972-73. The amount payable in 1972-73 by the Commonwealth to the States for assistance with debt charges under the *States Grants (Debt Charges Assistance) Act* 1970 will increase by. $1 1,504,000. Grants for non-metropolitan unemployment relief are currently estimated to increase by $45,001,000 to $72,000,000. The arrangements under this scheme are to be reviewed before the end of 1972. Payments to the States for education purposes are estimated ro increase by $25,996,000 of which $11,506,000 is attributable to increased per capita grants to 'independent schools. The estimated increases of $6,878,000 for universities and $6,178,000 for colleges of advanced education are based on the approved level of recurrent grants for the last year of the 1970-72 triennium and on the level of recurrent grants recommended by the Australian Universities Commission and the Australian Commission on Advanced Education, respectively, for the first calendar year of the 1973-75 triennium. Expenditure under the *Slates Grants (Housing) Act* 1971 will increase bv $2,730,000 in accordance with the provisions of the Act *Specific Purpose Payments of a Capital Nature* Specific purpose payments of a capital nature are estimated to increase by $61,430,000. This includes estimated increases of $33,750,000 in Commonwealth aid roads grants and $17,302,000 in payments to the States for education, the latter amount including an increase of $6,680,000 in capital grants for government schools arising from a new policy measure announced on 9 December 1971. An amount of $14,000,000 has been set aside to assist Queensland in financing the construction of the Gladstone (Queensland) Power Station in the event that the State satisfies the provisions of the Gladstone Power Station Agreement during 1972-73 ; no Commonwealth expenditure was made on this project in 1971-72. Other large increases include $8,826,000 for the softwood forestry programme, the provision of $1,158,000 to assist Tasmania in the construction of harbour facilities al Grassy (King Island) and $2,500,000 to Western Australia for the purchase of a ship to maintain the State shipping service to Darwin. Payments to the States for the development and control of water resources are estimated to show a net decrease of $3,010,000; increased expenditure on the Bundaberg irrigation works, water resources investigations/measurements and the Dartmouth dam is more than offset by reduced requirements for the Ord River irrigation project, Western Australian southwest region water supply project and the Fairbairn dam. Payments for railway construction projects are estimated to be $3,200,000 less, largely as a result of the estimated decrease of $1 ,938,000 in the provision for the construction of the Bell Bay railway in Tasmania. Payments for beef cattle roads are estimated to decrease by $1,390,000. Financial assistance for the Tasmanian hydro-electric scheme and the South Australian natural gas pipeline ceased at the end of 1971-72. {:#subdebate-68-2} #### Works and Housing Programmes At its meeting in June 1972 the Australian Loan Council approved a government borrowing programme tor 1972-73 of which $982,000,000 was for the financing of State works and housing. This includes $248,539,000 which the Commonwealth is providing as an interest-free capital grant lo help the States finance works from which debt charges are not normally recovered. The Loan Council approved borrowing programmes of S488,000,000 for State semi-government and local authorities with individual programmes in excess of $400,000 in 1972-73. 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 $400,000 in 1972-73. In 1971-72, no overall limit applied on borrowings by authorities for which the State Governments approved individual programmes of not more than $300,000. {:#subdebate-68-3} #### Item No. 3 - Payment to National Welfare Fund {: type="a" start="a"} 0. Expenditure on nursing home benefits for certain repatriation patients will now be met from annual appropriations of the Repatriation Department. Under the National Welfare Fund Act, the payment from Consolidated Revenue to the National Welfare Fund each year must be equal to actual expenditures from the Fund in that year. After taking account or the new proposals announced in the Budget Speech, expenditure from the National Welfare Fund is estimated to increase by $325,767,000 to $2,077,962,000 in 1972-73. The occurrence of an additional age and invalid pension and public service pay-day in 1971-72 is estimated to have added about $33,000,000 to payments to the National Welfare Fund in 1971-72. thus reducing the size of the estimated increase in payments to the Fund in 1972-73. Working in the opposite direction, however, is the occurrence in 1972-73 of an additional twelve-weekly child endowment payment, estimated to cost $27,400,000. The increase in payments to the Fund includes the additional full-year costs of measures announced in the 1971-72 Budget Speech and during 1971-72 which are estimated at about $100,000,000. The measures announced in the Budget Speech are estimated to add $154,877,000 to expenditures in 1972-73 and $227,320,000 in a full year. Details of the estimated costs of these proposed measures are shown in the following table. {:#subdebate-68-4} #### Item No. 4 - Repatriation Services {: type="a" start="a"} 0. Some of the figures for 1970-71 and 1971-72 have been adjusted for accounting changes to place them on a basis comparable with the 1972-73 estimates. (M Expenditure on nursing home benefits for certain repatriation patients which was previously a charge on the National Welfare Fund will now be met from annual appropriations of the Repatriation Department. Expenditures on repatriation services are expected to increase by $35,885,000 in 1972-73 to $388,326,000 after allowing for the occurrence of one less twelve -weekly payment of war pensions and benefits and one less Public Service pay-day in 1972-73. The additional pay-days in 1971-72 added Sl3,705,OOOto expenditure in that year. The additional full-year cost in 1972-73 of increased benefits announced in the 1971-72 Budget Speech and in April 1972 is estimated to be $10,998,000. An increase in the number of medical services and in the cost of providing pharmaceutical services, together with the full-year effect of salary determinations in 1971-72 and increased activity at repatriation institutions account for $5,300,000 of the estimated increase in total expenditure. The proposals announced in the Budget Speech are estimated to cost $28,550,000 in 1972-73 and $38,544,000 in a full year. Details of the estimated costs of the particular proposals are shown in the following table. {: type="a" start="a"} 0. Interest payments amounting to $13,971,000 in 1970-71, $14,131,000 in 1971-72 and an estimated $14,709,000 in 1972-73 relating to the drawings under credit arrangements for the purchase of defence equipment in the United States of America are included in Item No. I - Defence Services. *Interest - Commonwealth Inscribed Stock Act, etc.* - These interest payments are estimated to increase by $6,366,000 in 1972-73 largely because of increased borrowings by the Commonwealth to finance the interestfree capital grants to the States. *Sinking Fund.* The *National Debt Sinking Fund Aci* 1966-67 provides for contributions each year from the Consolidated Revenue Fund to the National Debt Sinking Fund equal to 4 per cent of the net debt of the Commonwealth liable to these contributions at 30 June of the previous year. The amount payable from revenue is reduced by income earned from investments after allowing for any profit or loss on the sale of securities. Net Commonwealth debt on which the 4 per cent contribution is calculated increased by $96,521,000 during 1971-72 and the gross percentage contribution is therefore estimated to increase by $3,861,000. Afier allowing for a loss on the realisation of maturing securities, the reduction in investment income is estimated to be $291,000 and the net increase in the contribution from Consolidated Revenue is estimated at $4,152,000. Item No. 6 - Departmental Running Expenses to) Some oi the figures for 1970-71 and 1971-72 have been adjusled for accounting changes to place them on a basis comparable with the 1972-73 estimates. The estimated increase in departmental running expenses is made up as follows: - The estimated increase of $36,666,000 in expenditure on wages and salaries reflects the full-year effects of higher wage and salary rates arising from arbitration and other determinations during 1971-72, a the increase in staff numbers. This increase would have been larger but for the effect of an additional Public Service pay-day costing about $17,000,000 in 1971-72. {:#subdebate-68-5} #### Itbm No. 7 - Territories (Excluding Papua New Guinea Kd {: type="a" start="a"} 0. Excludes expenditure on capital works and services: *see* Items Nos. 1 1 and 12- Advances for Capital Purposes and Other Capital Works and Services. 1. Includes the Australian School of Pacific Administration. The estimated increase in expenditure in the Australian Capital Territory includes $2,775,000 for expenditure by the Department of the Interior on police, administration and municipal activities and $2,490,000 for the Department of Education and Science. Of the latter increase $1,271 000 is for payment to the New South Wales Department of Education for teachers at government schools in the Australian Capital Territory; $523,000 is for payment to independent schools as a result of two increases in per capita Slants approved by the Government which are operative from the beginning of 1972 and 1973 respectively; and $428,000 is for increased salaries and general development of the Canberra Technical College. The estimated increase for the Department of Health includes $884,000 for commissioning the Woden Hospital. The estimated increase of $15,238,000 in expenditure in the Northern Territory results from the continuing expansion of expenditure on Aboriginal advancement and community, welfare and municipal services. The estimated increase of $9,169,000 in expenditure by the Department of the Interior includes $2,782,000 more for salaries and administrative expenses, $1,797,000 for general services undertaken by the Northern Territory Administration and $3,775,000 for Aboriginal advancement Expenditure by the Department of Works is estimated to increase by $3,529,000 and relates principally to expenditure on repairs and maintenance. The estimated increase of $1,587,000 in expenditure by the Department of Education and Science includes $1,004,000 for increased numbers of teachers and salaries and related expenditure at Government schools and the new Darwin Community College. The figures in this table summarise identifiable items in the budget which are wholly or in part in the nature of economic aid to developing countries. A number of Commonwealth departments and .instrumentalities operate in Papua New Guinea and incur direct expenditures of an economic nature in the Territory which are regarded as aid for purposes of international comparison. Such expenditures are included under other heads in the budget. Details of total expenditures on external economic aid, including estimates of certain expenditures not ncluded in the table above, are set out in Statement No. 8. The table above summarises expected Commonwealth payments, to industry during 1972-73 together with comparative data of actual payments in the two previous years. Details of these payments, informa-lion on other Commonwealth expenditures which assist industry and details of assistance to industry through the taxation system, are set out in Statement No. 9. {:#subdebate-68-6} #### Item No. 10- Other Expenditures {: type="a" start="a"} 0. With the exception of expenditures on Commonwealth scholarship schemes and the payment to the Aborigina Advancement Trust Account, the figures for 1970-71 and 1971-72 have been adjusted for accounting changes to place them on a basis comparable with the estimates for 1972-73. The exceptions are discussed in the text. {: type="1" start="6"} 0. These payments are regarded as being made from contributions in previous years by the Post Office in respect of accrued liability for superannuation. Other expenditures comprise expenditures under annual and special appropriations from the Consolidated Revenue Fund and the Loan Fund which are not included under other Hems. Total expenditures under this Item are expected to increase by $73,699,000 to $335,185,000 in 1972-73. Comments on the larger variations are set out below. *Education nml Science* *Austraiian uiioimi University.* The estimated increase oi $2,806,000 in payments to the Australian National University in 1972-73 is based on the level of recurrent grants approved for the last calendar year of the 1970-72 triennium and on the level of recurrent grants recommended by the Australian Universities Commission for the first calendar year of the 1973-7S triennium. *Commonwealth Scholarship Schema.* The estimated increase of 814,172,000 includes 86,043,000 tor university scholarships, 81,873,000 for advanced education scholarships, 81,426,000 for secondary scholarships and 8862,000 for post-graduate awards. As announced in the Budget Speech the estimated increases in university and advanced education scholarships arise mainly from decisions, effective from the beginning of 1973. to increase the number of awards under each scheme by 2,000 to a total of 14,500 and 6,000 per annum, respectively, relax the means test on parental income and increase the living allowance and other benefits to scholarship holders. The estimated increase in expenditure on secondary scholarships results from the phasing in as from the beginning of 1973, of a new scheme of 25,000 awards a year, partially means tested and tenable for the last two years of secondary schooling, in lieu of the existing scheme of 10,000 awards provided annually without a means test. The estimated increase on post-graduate awards reflects increased grants to universities and increased stipends to award holders payable from the beginning of 1973. The increase also reflects the provision of $3,010,000 for the Aboriginal Secondary Grants Scheme and 8720,000 for the Aboriginal Study Grants Scheme; expenditure on these schemes in 1971-72 was $2,536,000 and $474,000, respectively, and was financed from the Aboriginal Advancement Trust Account. *Commonweatlh Scientific and Industrial Research Organization.* Ot the total estimated increase of $5,040,000 in 1972-73, $2,442,000 arises from increases in salaries including the cost of recent awards and determinations. An additional $851,000 is required for the redeployment of staff previously supported from primary industry research funds. The balance of the estimated increase reflects higher administrative costs, support for new projects and increased grants for research associations. *Environment, Aborigines and the Arn* *Aboriginal Advancement.* An appropriation of $21,560,000 to the Aboriginal Advancement Trust Account has been provided which, together with the unexpended balance in the Trust Account at 1 July 1972, will allow expenditures aggregating $22,544,000 in 1972-73 This amount incorporates $5,000,000 for the acquisition of properties off reserves and, of the balance, it is proposed that $14,500,000 will be paid to the States. Comparable expenditures in 1971-72 amounted to $10,816,000, of which $9,200,000 was paid to the States. Other expenditures amounting to $3,150,000, mainly lor Aboriginal Secondary and Study grants, were financed from the Aboriginal Advancement Trust Account in 1971-72. In 1972-73 these expenditures will be financed from the votes of the Departments directly responsible for the administration of the programmes. *Other.* The estimated increase of $3,499,000 includes an amount of $2,280,000 for Commonwealth support for the arts. This allows for an additional $1,491,000 for the programmes administered by the Australian Council for the Arts. Of the remainder, an estimated $950,000 is for expenditure by the Australian Film Development Corporation under its Act. {:#subdebate-68-7} #### Health The estimated increase of $2,160,000 reflects new and increased grants for medical research. Of the increase, $806,000 is for payment to the Medical Research Endowment Fund and results from the recently announced increased support for medical research in the 1973-75 triennium, including the medical research programme of the National Health and Medical Research Council. Increases totalling $684,000 are attributable to new grants to the National Heart Foundation and the Australian Cancer Society as well as additional grants to the Royal Flying Doctor Service and the National Fitness Council. A provision of $400,000 has been made for the anti-smoking education campaign. {:#subdebate-68-8} #### Immigration *Assisted Passage Schemes.* The 1972-73 assisted migrant programme is 90,000 settlers compared with 84,000 in 1971-72. This accounts for the increase of $754,000 in estimated expenditure on embarkation and passage costs. *Migrant Education.* The estimated increase of $2,949,000 includes $1,625,000 Ibr the further development of the child migrant education programme. $826,000 for the adult education programme and $437,000 for intensive English language courses. {:#subdebate-68-9} #### Labour and National Service *Stevedoring Industry.* An amount equal to the proceeds of the stevedoring industry charge levied on the industry is paid to the Australian Stevedoring Industry Authority. Payments are estimated to rise by $3,895,000 in 1972-73 as a result of increased charges operative from February 1972. *Employment Training Schemes.* The estimated increase of $2,177,000 includes $1,582,000 for the expansion of the Country Apprenticeship Scheme and for the introduction of a scheme to stimulate apprenticeship employment in metropolitan areas as announced in the Budget Speech. $160,000 is required for the introduction of the two new employment training schemes announced in the Budget Speech, and the remaining $435,000 reflects the further development of existing schemes. {:#subdebate-68-10} #### National Development *Australian Atomic Energy Commission.* The running expenses of the Australian Atomic Energy Commission are estimated to increase by a net $1,561,000 in 1972-73. An additional $777,000 is required for wages and salaries mainly to provide for the full-year effect of arbitration awards and determinations made during 1971-72. Expenditure on reactor supplies and special nuclear materials is expected to increase by $316,000, and expenditure on outside services, general expenses and stores is estimated to increase by a total of $460,000. *Other.* The estimated reduction of $952,000 reflects payment during 1971-72 of a contribution of $1,050,000 to the International Tin Council's buffer stock. {:#subdebate-68-11} #### Postmaster-General's *Broadcasting and Television Services.* The estimated increase of $5,306,000 in expenditure under this item in 1972-73 includes $3,900,000 for increased running expenses of the Australian Broadcasting Commission and $1,201,000 for additional expenditure on technical services provided by the PostmasterGeneral's Department {:#subdebate-68-12} #### Primary Industry *War Service Land Settlement,* Payments to the agent States under the *States Grants (War Service Land Settlement) Act* 1952-53 for the acquisition and development of properties and for the provision of credit facilities to soldier settlers are financed from loan moneys. The estimated increase in expenditures from loan moneys of $2,829,000 in 1972-73 is attributable mainly to the provision of $2,500,000 for special financial assistance to certain South Australian soldier settlers to refinance stock mortgages and provide working capital advances and to an expected increase of $643,000 in the credit requirements of other soldier settlers in the agent States. These increases are partly offset by an estimated reduction of $314,000 in the requirement for acquisition and development of properties. Administrative expenses under the War Service Land Settlement Scheme, which are met from annual appropriations, are estimated to increase from $536,000 to $700,000 in 1972-73. {:#subdebate-68-13} #### Prime Minister and Cabinet An amount of $5,000,000 has been included to cover the scheme of Child Care Assistance announced in the Budget Speech. This item will be transferred to the vote of the administering department during the year. {:#subdebate-68-14} #### Social Services *Homes for Aged Persons.* As announced in the Budget Speech the Commonwealth, under a special arrangement limited to three years, will grant certain organisations that have received subsidy under the *Aged Persons Homes Act* 1954-69, special assistance to build and furnish additional hostel accommodation. The estimated cost of these measures in 1972-73 is $2,000,000 and this is the main reason for the increase of $3,000,000 in estimated expenditure on homes for aged persons in 1972-73. *Other.* Expenditure under this heading is expected to increase by $1,942,000 and is attributable mainly to estimated increases of $801,000 in grants to eligible organisations under the *Sheltered Employment (Assistance) Act* 1967-1970 and $1,119,000 under the *Handicapped Children (Assistance) Act* 1970. {:#subdebate-68-15} #### Treasury *Superannuation.* The estimated increase of $7,872,000 in the Government contributions to the Superannuation Fund for the Commonwealth's share of pensions paid to former employees wilt be partly offset by an increase of $2,990,000 in the Post Office's contributions for its former employees. Both contributions reflect expected growth in the number of pensioners retiring with a higher entitlement to pension because of salary increases. Provision has also been made for the full year effect of increased pension entitlements granted from 1 October 1971. *Advances for Capital Purposes* Expenditures under this item are estimated to increase by $29,319,000 to $522,066,000 in 1972-73. This increase is the net result of a number of large variations in individual- items. - *fust Office,* lt is estimated that an amount of $288,000,000 or $18,000,000 more than last year will be provided to the Post Office in 1972-73 to help finance its capital works programme. The Post Office will also be contributing to tire programme from its own internal resources, mainly from depreciation funds. *Australian National Airlines Commission.* The estimated increase includes an extra $3,091,000 for advances to the Commission of the proceeds of loans raised on the Commission's behalf by the Commonwealth for aircraft purchases. In addition, proposed new accounting arrangements for superannuation require the provision of a loan of $25,000,000 to the Commission in 1972-73. (The Commission will make an offsetting payment to the Commonwealth of $21,000,000- -see 'Other Revenue', Statement No. 5.) *Qantas Airways Limited.* An amount of $25,000,000 has been provided for additional share capital for Qantas. An estimated $62,600,000 less than in 1971-72 is to be paid to the company as advances of the proceeds of loam raised on the company's behalf by the Commonwealth for the purchase of aircraft. *Snowy Mountains Hydro-electric Authority.* The estimated decrease of $4,141,000 in expenditure in 1972-73 reflects progress towards completion of the Snowy Mountains Scheme. *Australian Industry Development Corporation.* $12,500,000 has been paid to the Corporation in 1972-73 as a further instalment of capital. This brings to $50,000,000 the total amount of capital provided to the Corporation. *Export Payments Insurance Corporation.* An amount of $4,000,000 is to be provided in 1972-73 as additional capital for the Export Payments Insurance Corporation. No similar payment was made last financial year. *Commonwealth Development Bank.* Provision was made in 1971-72 for an advance of $10,000,000 to help finance an extension of the Bank's operations to include loans to farmers for the acquisition of additional land to build up the size and operational efficiency of their farms. *Rural Lending.* As announced in the Budget Speech, $20,000,000 is being provided for this purpose. *War Service Homes.* Loans for War Service Homes are expected to be $5,000,000 greater due to a higher rate of applications for loans and the full-year cost of the increase in the maximum loan to $9,000 announced in i he 1971-72 budget. *Australian Capital Territory Advances - Housing.* The estimated increase of $5,470,000 in the provision for Australian Capital Territory Housing Advances includes an additional $2,853,000 for loans to building societies in the Territory. *Northern Territory Advances- Housing.* The estimated decrease of $1,201,000 in this item results from a current downturn in demand for Commission dwellings in Darwin. *Northern Territory Advances- Port Authority.* Advances to the Northern Territory Port Authority are estimated to decrease by $1,103,000 in 1972-73, due largely to the exclusion of any provision for the Darwin Port Development project, pending reconsideration of the nature and extent of facilities required. *Commonwealth Serum Laboratories Commission.* The provision of $2,093,000, an increase of $1,293,000, has been made to allow the Commission to continue its capital expansion programme. {:#subdebate-68-16} #### Item No. 12 - Other Capital Works and Services {: type="a" start="a"} 0. Figures for 1970-71 and 1971-72 have been adjusted for accounting changes to place them on a basis comparable with the 1972-73 estimates. Expenditure on other capital works and services is estimated to decrease by $706,000 to $263,567,000 in 1972-73. Details of the major variations are set out below. *Purchase of Sites, Buildings and Improvements on Leases* *Under the Control of the Department of the Interior.* *Civil Aviation.* The principal reasons for the estimated increase of $2,131,000 in expenditure on behalf of the Department of Civil Aviation are further purchases of land for the future development of Perth Airport and the purchase of staff residences in remote areas from the State Housing Commission of Western Australia. *Interior.* Expenditure by the Department of Interior in 1972-73 is expected to be $18,711,000 less than in 1971-72, largely because of non-recurring expenditure of $16,700,000 in 1971-72 for the transfer of five acres of Navy land at Woolloomooloo to the Department of the Interior for development as a Commonwealth office site. Another contributing factor is reduced expenditure on freehold land acquisitions in the A.C.T. {:#subdebate-68-17} #### Buildings and Works *Under the Control of the Department of Works* *Civil Aviation.* The estimated $17,132,000 reduction in civil aviation works is due to a further tapering off of major construction projects at Melbourne and Avalon Airports (Vic.) and Sydney (Kingsford-Smith) Airport (N.S.W.). *Education and Science.* Expenditure on laboratories for C.S.I.R.O. is estimated to be $353,000 more than in 1971-72. The estimated increase of $1,379,000 on other works reflects a larger construction programme for schools in the Northern Territory. *Health.* The estimated decrease of $5,183,000 is attributable mainly to reduced requirements for worksinprogress, particularly the Nhulunbuy hospital complex (N.T.) and the Woden Valley Hospital (A.C.T.). *Interior.* Urban development and Aboriginal advancement projects in the Northern Territory are the main factors leading to the increase of $12,909,000 in expenditure. Expenditure on office construction is expected to be $1,016,000 more than in 1971-72. *Repatriation.* The estimated increase of $1,875,000 is due mainly to the construction of pathology and operating facilities at Heidelberg Repatriation Hospital (Vic). *Social Services.* With the new rehabilitation centre at Glen Waverley (Vic.) nearing completion, works expenditure for the department is expected to decline by $912,000 this year. *Broadcasting and Television Services.* With major projects nearing completion in Adelaide and Cairns (Mt Bellenden Ker), works expenditure is expected to be $1,546,000 less than in 1971-72. {:#subdebate-68-18} #### National Capital Development Commission Expenditure is expected to be $8,900,000 greater than in 1971-72. Estimated requirements for 'basic* works exceed last year's expenditure by $7,500,000. The principal proposed increases are $1,900,000 for roads and traffic works particularly arterial roads, $1,800,000 for retail, commercial and industrial facilities, $1,600,000 for sewerage works, and $1,200,000 for 'city' works including the Phillip (A.C.T.) transport depot. Expenditure on Commonwealth offices is expected to rise by $900,000. *Plant and Equipment, etc.* *Health.* The estimated increase of $1,604,000 is principally for the purchase of peripheral computer equipment for the department's central computer facility, and additional replacement equipment for hospital and other health services in the Northern Territory. *Broadcasting and Television Services.* The increase of $3,133,000 relates to the acquisition of new studio equipment for the Australian Broadcasting Commission and the provision of television transmission facilities in remote country areas. *Other.* The increase of $7,505,000 under this heading includes increases of $1,579,000 for A.D.I', equipment for the Department of Customs and Excise, $2,200,000 for vessels, plant and equipment for the Department of Shipping and Transport, and $2,227,000 for plant and equipment for the Statistician's Branch of the Department of the Treasury. {:#subdebate-68-19} #### Other Payments to or for Statutory Bodies and Other Organisations Expenditures under this heading are estimated to be $3,440,000 less in 1972-73 than in 1971-72. Details of the major variations are set out below. *Commonwealth Railways.* The estimated reduction of $1,827,000 under this heading comprises a reduction of $5,215,000, due mainly to the expected completion of the Port Augusta to Whyalla Railway and reduced expenditure for rolling stock and building and construction in 1972-73, partly offset by an increase of $3,388,000 to commence construction of the Tarcoola to Alice Springs railway. *Australian National University.* The estimated reduction of $1,505,000 in payments to the Australian National University reflects the recommendations of the Australian Universities Commission for the 1973-75 triennium. *Other.* The estimated increase of $1,821,000 includes an increase of $1,066,000 in payments to the River Murray Commission reflecting estimated contributions in 1972-73 for the construction of the Dartmouth Dam. {: .page-start } page 91 {:#debate-69} ### STATEMENT No. 5- ESTIMATES OF RECEIPTS, 1972-73 The transfer of pay-roll tax to the States as from 1 September 1971 has resulted in a loss to Commonwealth revenues from that date and affected the increases in budget revenues. The transfer of pay-roll tax was accompanied by a reduction in financial assistance grants payable to the States. Details of the arrangements relating to the transfer of pay-roll tax are set out in the document 'Commonwealth Payments to or for the States 1972-73' presented concurrently with the budget and the effects of the transfer on year-to-year comparisons of revenue are discussed in Statement No. 7. On the basis of *existing* legislation and in the absence of any changes in existing taxes and other charges, it is estimated that total receipts in 1972-73 would amount to $9,881,775,000 which would be $1,036,379,000 or 11 .7 per cent more than total receipts in 1971-72. Details of the estimated effects on receipts in 1972-73 and in a tutt year of the revenue proposals announced in the Budget Speech are shown in the following table. After taking these revenue proposals into account, total receipts in 1972-73 are estimated at 59,447,465,000, an increase of $602,069,000 or 6.8 per cent. In 1971-72, total receipts increased by $815,167,000 or 10.2 per cent. The transfer of pay-roll tax to the States is estimated to have reduced receipts by $253,169,000 in 1971-72. The following table compares estimated receipts in 1972-73 with actual receipts in the two preceding financial years. wilh 1971-72 figures and tbe estimates for 1972-73. {:#subdebate-69-0} #### Taxation Revenue In 1972-73 total taxation revenue is estimated to increase by $556,573,000 or 7.1 per cent, to $8,400,500,000. The main changes in estimated taxation collections are discussed in the following notes. *Customs Duty.* On the basis of existing legislation, collections of customs duty are estimated to increase by $57,121,000 to $525,000,000. This estimate allows for an increase in the value of recorded imports in 1972-73 and for an increase in the proportion of imports dutiable at higher rates. *Excise Duty,* etc. The estimate of excise duty collections assumes that consumer spending will increase more strongly in 1972-73 than in 1971-72. Allowing for the minor measure announced in the Budget Speech, collections are estimated to increase by $71 ,014,000 or 5 . 9 per cent to $1 ,283,020,000- the full year effect of the reduction in excise duty on wine, announced in May 1972, is reflected in this estimate. The increase in collections in 1971-72 of $158,702,000 or 15. 1 per cent, included the effects of increases in excise duty rates in that year. *Sales Tax.* The estimate of sales tax collections in 1972-73 assumes that the sale values of most goods subject to sales tax will increase more strongly in 1 972-73 than they did in 1971-72. On the basis of existing legislation, it is estimated that sales tax collections will increase by $54,1 99,000 or 7 . 9 per cent to $737,000,000, following an increase of $49,642,000 in 1971-72. The effect of the proposed exemption from sales tax of works of art will be to reduce collections in 1972-73 by an estimated $480,000 to $736,520,000. *Income Tax- Individuals.* It is estimated, on the basis of a 2 per cent levy for 1972-73 and other provisions of existing legislation, that net collections of income tax from individuals in 1972-73 would increase by $871,416,000 or 23.1 per cent to $4,640,000,000. The measures announced in the Budget Speech are estimated to reduce income tax collections from individuals by $432,200,000 in 1972-73. Thus after allowing for these changes, net income tax collections from individuals are estimated to increase by $439,216,000 in 1972-73. {: type="a" start="a"} 0. *Pay-as-you-earn Instalment Deductions.* On the basis of an on-going levy of 2$ per cent and other provisions of existing legislatic n, gross pay-as-you-earn instalment deductions in 1972-73 are estimated at Ki 60,000,000 or $667,934,000 more than in 1971-72. For the purpose of estimating pay-as-you-earn collections, an increase of 9.0 per cent has been assumed as the increase in average earnings for 1972-73. 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 reliability. Nor does its use imply that it is a budget objective. The increase in the average number of employees in 1972-73 in terms of 'male units' is assumed to be 2 . 0 per cent, a little above that experienced in 1971-72. Refunds of pay-as-you-earn instalment deductions are estimated to decrease by $83,519,000, one factor being the effect of the variations made to tax instalment schedules during the 1970-71 and 1971-72 financial years. Net pay-as-you-earn collections, before taking account of the proposals outlined in the Budget Speech, are therefore estimated to increase by $751,453,000 to $3,640,000,000 Allowing for the new taxation measures the estimate is $3,278,000,000, an increase of $389,453,000. {: type="a" start="b"} 0. *Other.* On the basis of existing legislation and provisional tax including a levy of 2$ per cent in 1972-73, collections on assessments of individuals are estimated to increase by $119,963,000 to $1,000,000,000. The overall increase in 1971-72 incomes, other than wages and salaries, reflects a recovery of about 18.0 per cent in the business incomes of primary producers during 1971-72. The incomes of other individuals subject to provisional tax are estimated to have increased by 6.6 per cent in 1971-72. These 1971-72 incomes are, of course, subject to tax in 1972-73. After allowance is made for the effects of the new income tax measures, collections on assessments of individuals are estimated to amount to $929,800,000 in 1972-73. *Income Tax - Companies.* Incomes of companies in 1971-72, which are subject to tax in 1972-73, are estimated to have increased by 3.2 per cent, following an increase of 1.9 per cent in 1970-71. Collections of income tax from companies in 1972-73 are estimated at $1,300,000,000, an increase of $22,518,000. *Pay-roll Tax.* Pay-roll tax collections are estimated to decline by 593,570,000 in 1972-73. Pay-roll tax ceased to be levied by the Commonwealth on wages and salaries paid in the States on and after 1 September 1971. The estimated collections of $5,500,000 in J972-73 therefore relate mainly to pay-roll tax on wages and salaries paid in the Australian Capital Territory and the Northern Territory. *Estate Duty.* On the basis of existing legislation, it is estimated that collections ot estate duty will increase by $2,794,000 to $70,000,000 in 1972-73, following a decrease of $2,867,000 in 1971-72. The changes in the relevant provisions as announced in the Budget Speech are estimated to have a cost to revenue in 1972-73 of $3,000,000, reducing collections to $67,000,000. *Gift Duty.* Gift duty collections in 1972-73 are estimated, on the basis of the present legislation, at $8,500,000. The changes in gift duty legislation announced in the Budget Speech are estimated to reduce collections in 1972-73 by $400,000 to $8,100,000. *Stamp Duty (A.C.T.* and N.T.). At existing rates, stamp duty revenues in the Territories are estimated to total $3,360,000 in 1972-73, an increase of $641,000. The gain to revenue in 1972-73 of the proposed change in the A.C.T. stamp duty provisions announced in the Budget Speech is estimated at $200,000. This estimate is based on the assumption that the new rates will apply as from 1 November 1972. Other Revenue {: type="a" start="a"} 0. Some of the figures for 1970-71 have been adjusted for accounting changes to place them on a basts comparable with 1971-72 figures and the estimates for 1972-73. Other revenue is estimated to increase by 845,247,000 in 1972-73. Brief explanations of the larger variations are contained in the following notes. {:#subdebate-69-1} #### Civil Aviation *Qantas Airways Limited- Dividend.* Dividend receipts are estimated to be 52,955,000 less, there being no provision for the receipt during 1972-73 of a dividend in respect of the company's 1971-72 financial year. *Air Navigation Charges.* Collections are expected to increase by 33,703,000 as a result of growth in air traffic, the lifting of weight restrictions on aircraft at certain airports, and the increase in charges announced in the Budget Speech which is estimated to yield $800,000 in 1972-73. {:#subdebate-69-2} #### External Territories The estimated increase of $2,602,000 reflects the net effect of the sale to the Papua New Guinea Investment Corporation of the shares in Commonwealth New Guinea Timbers Ltd., which were previously held by the Commonwealth, and the consequent discontinuation of dividend receipts from that company in 1972-73. {:#subdebate-69-3} #### Interior In 1971-72, Navy land at Woolloomooloo, N.S.W., valued at $16,700,000 was transferred to the Department of the Interior. No similar transaction is expected in 1972-73 and this is the major factor accounting for the net decrease of $16,191 ,000 in Interior revenues. Revenue for services provided by the Bureau of Meteorology is estimated to increase by $604,000. {:#subdebate-69-4} #### Labour and National Service *Stevedoring Industry Charge.* The proceeds of the Stevedoring Industry charge are paid to the Australian Stevedoring Industry Authority. The estimated increase of $3,703,000 in 1972-73 reflects the full year impact of increased charges effective from February 1972. {:#subdebate-69-5} #### National Development *Snowy Mountains Hydro-electric Authority - Interest and Principal.* Receipts of interest and repayments of principal from the Snowy Mountains Hydro-electric Authority are estimated to increase by $6,708,000 and $1,559,000 respectively in 1972-73 mainly as a result of bringing to account certain capital expenditure relating to the Tumut 3 project. {:#subdebate-69-6} #### Postmaster-General's *Broadcasting and Television Licence Fees.* The estimated increase of $5,291,000 in 1972-73 includes additional revenue of $5,215,000 from broadcasting listeners' and television viewers' licence fees, the rates of which were increased from 1 October 1971. {:#subdebate-69-7} #### Primary Industry *Rural Reconstruction- Interest.* The estimated increase of $1,852,000 reflects the full year effects of the substantial repayable advances made last year and the further increase in such advances expected in 1972-73. {:#subdebate-69-8} #### Shipping and Transport *Commonwealth Railways- Net Receipts.* Net receipts from Commonwealth Railways are estimated to increase by $2,576,000 in 1972-73. Gross receipts are expected to be $3,460,000 greater than in 1971-72 as a result of traffic growth and increases in some freight rates. Working expenses, however, are expected to increase by $884,000 mainly as a result of higher wage and salary payments. *Other.* The estimated increase of $1 ,696,000 in 1972-73 reflects a projected increase in light dues of $872,000, which is mainly attributable to increased charges announced in the Budget Speech. Loan interest payable by the Australian Coastal Shipping Commission is expected to increase by $626,000 in 1972-73. {:#subdebate-69-9} #### Treasury *Reserve Bank.* Consolidated Revenue Fund receipts from Reserve Bank profits are estimated to decrease by $18,170,000 in 1972-73 reflecting certain consequences of changes in international currency values. *Post Office - Interest on Capital.* It is estimated that because of the increase in capital advanced to the Post Office, interest received from the Post Office will rise by $18,158,000 in 1972-73. *Repayments of Principal - Australian National Airlines Commission and Qantas Airways Limited.* Repayments of principal by the Australian National Airlines Commission are estimated to increase by $1,877,000 in 1972-73 while repayments by Qantas are estimated to be $3,661,000 greater, relating principally to loans drawn in 1971-72 for aircraft and equipment purchases. *Interest on Wheat Board Advances.* Interest receipts on funds advanced to the Australian Wheat Board are estimated to decrease by $2,837,000 because of an expected decline in the average advance outstanding to the Wheat Board in 1972-73. *Superannuation Contributions by the Australian National Airlines Commission.* The estimated receipts of $21,000,000 from the Commission in 1972-73 represent payments under an arrangement expected to be entered into between the Treasurer and the Commission in terms of Section 145 of the Superannuation Act 1922-1971, in respect of the Commission's accruing liability under that Act. *Other.* The estimated increase of $11,542,000 is attributable largely to increased interest and principal repayments on various advances to the States. The larger increases include $3,500,000 and $2,000,000 respectively for repayments of special advances made to N.S.W. and Victoria; $3,102,000 from Tasmania relating to hydro-electric power development assistance; and $1,927,000 from South Australia in respect of natural gas pipeline assistance. {:#subdebate-69-10} #### Works Revenue is estimated to increase by $1,553,000 in 1972-73 due mainly to the sale of some Department of Works assets in Papua New Guinea to the Administration in accordance with agreed arrangements for the transfer of functions. There will be an offsetting element in the form of a special Commonwealth grant to Papua New Guinea to facilitate the acquisition of these assets by the Administration. {:#subdebate-69-11} #### Army Receipts are estimated to decline by $2,058,000 in 1972-73 mainly because disposals and sales of stores are expected to be much lower than in 1971-72. In addition, revenue in 1971- 72 included $500,000 on account of imprest advances repaid following the withdrawal of the Vietnam force. {:#subdebate-69-12} #### Air The main reason for the decline of $1,812,000 in estimated receipts in 1972-73 is that revenue in 1971-72 included a compensation payment of $1,680,000 on account of an Orion' P3B aircraft destroyed in the U.S.A. in 1968. No similar receipt is expected in 1972- 73. {:#subdebate-69-13} #### Supply *Other.* The estimated decline of $3,543,000 in other revenue is attributable mainly to an expected reduction in the proceeds of disposals sales in 1972-73. {:#subdebate-69-14} #### Territories *Northern Territory.* It is estimated that revenue from the Northern Territory' will increase by $3,320,000 in 1972-73, including increases of $1,065,000 from electricity supply, $1,098,000 from health services and $612,000 from miscellaneous items. {:#subdebate-69-15} #### Receipts of National Debt Sinking Fund Details of the estimated receipts of the National Debt Sinking Fund are shown in the following table. {: type="a" start="a"} 0. Excludes profits or losses from realization of investments. In 1970-71, profits from realization of investments amounted to 8215,000 while in 1972-73 losses are estimated to amount to $334,000. There was no sale of securities in 1971-72. (o) Excludes repayments of advances from the Australian Wheat Board. {:#subdebate-69-16} #### Commonwealth *Contribution from Consolidated Revenue and Interest on Investment.* The National Debt Sinking Fund Act 1966-67 provides for contributions each year from the Consolidated Revenue Fund to the National Debt Sinking Fund equal to 4 per cent of the net debt of the Commonwealth liable to these contributions as at the previous 30 June. The amount payable from revenue is reduced by income earned from investments after allowing for any profit or loss on the sale of securities. Net Commonwealth debt on which the 4 per cent contribution is calculated increased by $96,521,000 during 1971-72 and the gross percentage contribution is therefore estimated to increase by $3,861,000 in 1972-73. After allowing for a loss on the realization of maturing securities of $334,000, the reduction in investment income is estimated to be $291,000 and the estimated net increase in the contribution from Consolidated Revenue is $4,152,000 for 1972-73. In 1971-72, $25,000 was paid into the Sinking Fund under the provisions of Section 11 of the Act. *Repayments of Loan Fund Advances for Housing.* Repayments to the Sinking Fund of advances to the States under the various Housing Agreement Acts are estimated to be $628,000 greater in 1972-73. Repayments will increase until the maturity of the loans, because of the credit foncier basis applied to the combined repayment of principal and interest. *Receipts in Respect of State Debt* *Contributions by Commonwealth and States.* In accordance with the Sinking Fund requirements of the Financial Agreement concerning State debt, contributions from revenue by the Commonwealth and States on State debt are estimated to increase by $7,749,000 in 1972-73. Net Increase in Other Balances of the Commonwealth in the Trust Fund The net increase in other balances of the Commonwealth in the Trust Fund in 1972-73 is estimated to be $12,351,000 less than the increase in 1971-72, due largely to a turnaround of $7,011,000 in the net movements in the balances of Army and Supply Trust Accounts and a fall of $1,188,000 in interest on investments held in the Loan Consolidation and Investment Reserve. 100 *Appropriation Bill (No. 1)* REPRESENTATIVES *Appropriation Bill (No. I)* STATEMENT No. 6- BUDGET RESULT, 1971-72 {: .page-start } page 100 {:#debate-70} ### SUMMARY The budget estimates and outcome for 1971-72, in conventional terms, are summarised in the following table. The overall budget result was a deficit of $187 million, compared with the original budget estimate of a deficit of $11 million. The outcome of the 1971-72 budget was affected to a significant degree by the policy measures adopted by the Government during the year to meet developing economic trends. New policy measures introduced since the budget was tabled in August 1971 are estimated to have added approximately $140 million to Commonwealth expenditures and to have reduced revenues by about $12 million. The measures introduced included increased rates of nursing home benefits, increases in the State works and housing programmes, additional revenue grants to the States, additional payments to the States for education purposes and grants to the States for relief of unemployment in non-metropolitan areas. In February 1972, the monthly rate of expenditure on non-metropolitan unemployment relief grants, which had been introduced in December 1971, was doubled, additional revenue grants and increased grants and advances for the State works and housing programmes were made available, unemployment benefit rates were increased, and the investment allowance on manufacturing plant and equipment was restored. This latter measure did not, of course, affect revenues during 1971-72. In April, age, invalid, widows and certain war and service pension rates were increased and the levy on personal income tax was reduced from S per cent to 2) pet cent, applying effectively for the last quarter of the year. {: .page-start } page 101 {:#debate-71} ### EXPENDITURES The budget estimates for 1971-72 are compared with actual expenditures for that year in the following table: >Some *of* the figures shown differ from the budget estimates published previously because of minor accounting changes. > >The budget estimate for 1971-72 included $63 million for payments to be financed under credit arrangements with the United States of America; the actual amount financed from this source was $44 million. The main variations from the budget estimates, including the new policy measures mentioned earlier, were as follows: {:#subdebate-71-0} #### Defence Services Total expenditure on defence services was $35 million less than the budget estimate. Service pay and civil salaries were $7 million more than the budget estimate largely due to the implementation of the Kerr Committee recommendations on pay for service officers and because of civil salary and wage determinations made after the budget. Against this there were shortfalls in other areas of expenditure. Actual expenditure on purchase and manufacture of aircraft for the RAN and RAAF fell short of the budget estimate by $15 million due mainly to re-phasing of payments on the F111C aircraft, medium-lift and utility helicopters and to deferment in ordering certain equipment for the RAN HS748 aircraft. Mainly due to lags in deliveries of certain items and non-receipt of bills, expenditure on stores and equipment for the RAN and RAAF was $13 million less than the estimate. Because of the deferment of some projects and lower expenditure than was expected following withdrawal from Vietnam, expenditure on arms, armament and equipment for the Army was $8 million less than the budget estimate. Expenditure on naval construction was $4 million less due to delays encountered on certain projects. *Payments to or for the States and Works and Housing Programmes* Payments to or for the States and works and housing programmes were a net $124 million greater than the budget estimate. New policy measures were the major factor contributing to this increase. General revenue payments were $70 million greater than the budget estimate and included additional assistance of $32.5 million as a result of decisions announced at the February 1972 Premiers' Conference. Of this latter amount, $17.5 million was in the form of a special advance to New South Wales. In addition, because average wages increased more rapidly than had been anticipated, the operation of the formula under which the financial assistance grants are determined resulted in an increase of $28 million in these grants over the budget estimate. Special grants exceeded the budget estimate by $9 million following the Government's adoption of the Commonwealth Grants Commission's recommendation in March 1972 on Queensland's application for a special grant. Specific purpose payments of a revenue nature were a net $31 million greater than the budget estimate, mainly as a result of the introduction of the non-metropolitan unemployment relief grants in December 1971. These grants amounted to $27 million in 1971-72. Payments to independent schools were $5 million more than the budget estimate because of the decision announced in December 1971 to increase per capita grants to these schools. Specific purpose payments of a capital nature were a net $9 million less than the budget estimate. Short-falls in capital payments for education purposes included $3 million for colleges of advanced education, $2 million for teachers colleges and $2 million for technical training. An offset to these, introduced in December 1971, was $7 million capital grants to government schools. Other shortfalls from the budget estimates occurred in the fields of softwood forestry and railway projects. These were $4 million and $3 million respectively below the budget provisions. In addition, although $2 million was provided in the budget for the Gladstone Power Station, no payments were made because of delays in meeting the provisions of the agreement relating to sales of electric power. Payments to the States for works and housing programmes were $32 million greater than estimated in the budget as a result of increased programmes agreed at the Australian Loan Council meeting in February 1972. {:#subdebate-71-1} #### National Welfare Fund Payments to the National Welfare Fund exceeded the budget estimate by $58 million. Expenditures on age, invalid and widows pensions were $9 million greater largely because of the increases in pension rates and the restoration, in April 1972, of the normal operation of the tapered means test. Payments of unemployment and sickness benefits were $18 million more than estimated because of the increased rates of benefit announced in February 1972 and a larger than anticipated increase in the number of benefit recipients. Child endowment payments fell short of the budget provision by $2 million. Expenditures on national health services were $31 million greater than estimated. The largest increase was in payments of nursing home benefits which exceeded the budget estimate by $19 million; this was attributable to increases in rates of benefits in October 1971. Expenditure on medical benefits exceeded the budget estimate by $9 million and pharmaceutical benefits, including benefits to pensioners, were $5 million greater than estimated. The latter arose from a greater than anticipated increase in the utilization of drugs covered by the scheme and increased average costs of drugs prescribed. {:#subdebate-71-2} #### Repatriation Services In total, expenditure on repatriation services was close to the budget estimate. Expenditure on repatriation institutions was $2 million greater than estimated largely because of increased costs arising from wage determinations for staff employed by these institutions. Pensions and allowances paid to ex-servicemen and their dependants were $3 million less than estimated because there were fewer recipients of these payments than had been assumed. Expenditure on other benefits was $1 million less than anticipated. {:#subdebate-71-3} #### Debt Charges Debt charges were $9 million less than estimated. Lower discount rates on Treasury Notes issued during the year contributed to the reduction. {:#subdebate-71-4} #### Departmental Running Expenses Departmental running expenses were $13 million greater than the budget estimate. Wage and salary payments were $10 million more than estimated principally- because of arbitration and other determinations brought down after the budget was presented. *Territories (excluding Papua New Guinea)* Expenditure in the Territories was $4 million more than the budget estimate. Expenditures in the Northern Territory and the Australian Capital Territory were each $2 million more due mainly to increased wage and salary costs. *External Economic Aid (including Papua New Guinea)* Expenditure on external economic aid was $12 million greater than the budget provision. Payments to the International Development Association were $4 million above the estimate reflecting greater calls on Australia in 1971-72 by the Association than were expected when the budget was presented. Emergency relief for Pakistani refugees and rehabilitation and relief payments to Bangladesh amounted to $3 million more than was provided in the budget. Payments in respect of allowances and other benefits for overseas officers of the Papua New Guinea public service were $2 million greater as a consequence of wage increases awarded in Australia and drawings on the Arawa loan by the Papua New Guinea Administration were $2 million more than estimated. Special aid to Indonesia and payments to the Indus Waters Scheme were each $1 million greater than the respective budget provisions. {:#subdebate-71-5} #### Commonwealth Payments to Industry In total these payments were $31 million greater than the budget estimate. Wheat stabilization payments exceeded the estimate by $31 million largely because stabilization payments were made in respect of both the 1969-70 and 1970-71 wheat pools. It was originally thought that the 1970-71 pool would not be finalized during 1971-72 and hence no provision for it was included in the budget estimates. Bounty payments on phosphate fertilizers exceeded the budget estimate by $8 million because of the improvement in rural conditions which led to a greater than expected use of phosphate fertilizers. Export incentive rebates were $6 million above the budget estimate because of a greater than expected increase in exports eligible under the scheme. Deficiency payments for wool were $7 million less than the estimate, reflecting the improvement in wool prices in the latter half of 1971-72. The amount of $4 million provided in the budget for advances to the Australian Wool Commission against possible loss on its trading operations in 1971-72 was not required. Expenditure on marginal dairy farm reconstruction was $4 million less than estimated. {:#subdebate-71-6} #### Other Expenditures Other expenditures were $5 million more than the budget estimate but this was the outcome of a number of offsetting changes. The larger variations included an increase of $6 million in net Commonwealth superannuation payments which resulted from higher entitlements for new superannuitants arising from increased salaries, and from a larger than estimated number of pensioners and higher rates of pension. Increased university fees were largely responsible for expenditure on Commonwealth scholarships exceeding the budget estimate by $2 million. Expenditure on broadcasting and television services was also $2 million above the budget estimate. Expenditure on the assisted migrants' passage scheme was $4 million less than estimated, reflecting the reduced number of assisted immigrants. {:#subdebate-71-7} #### Advances for Capital Purposes In total, advances for capital purposes differed only slightly from the budget estimate, being less by a net $3 million, but there were variations in several of the components. The Post Office received an extra $15 million to help sustain its capital programme and because of a shortfall in expected revenue. Advances to Qantas were $12 million less than anticipated because their programme of aircraft purchases was not completed. As provided in the budget an advance of $10 million was paid to the Australian Wool Commission, but following an increase in demand, sales of wool enabled the Commission to repay the advance. Advances for War Service Homes exceeded the budget estimate by $5 million. {:#subdebate-71-8} #### Other Capital Works and Services Expenditure on other capital works and services was very close to the budget estimate. Outlay on buildings and works for the Department of Civil Aviation was $1 million greater than estimated because of accelerated progress on the Melbourne (Tullamarine) Airport runway extensions and the settlement of claims for the Sydney (Kingsford-Smith) Airport runway extensions. Expenditure on works for the Department of Health in the Northern Territory exceeded the budget provision by $1 million, due mainly to accelerated progress on the Nhulunbuy hospital. The increase of $1 million in the National Capital Development Commission's vote resulted from the re-assessment of the Commission's requirement for 1971-72 in the light of increased contract payments due to rises in wages and prices. Progress on the Port Augusta- Whyalla railway was not as rapid as expected and there was a shortfall of $2 million in the estimated expenditure on that project. {: .page-start } page 104 {:#debate-72} ### RECEIPTS The budget estimates for 1971-72 are compared with actual receipts in the following table: The main variations from the budget estimates were: {:#subdebate-72-0} #### Customs Duty Collections of customs duty fell short of the budget estimate by $65 million because dutiable imports in 1971-72 were substantially less than had been assumed at the time of the budget. Excise duty collections were 830 million more than estimated mainly because clearances of motor spirit and tobacco products were greater than assumed {:#subdebate-72-1} #### Sales Tax Sales tax collections were $12 million less than estimated. This shortfall related mainly to lower than anticipated sales of motor vehicles. Sales of other goods in the IS per cent and *21i* per cent rate classes were also not as great as originally estimated. *Income Tax - Individuals - Pay-as-you-earn* Gross collections of P.A.Y.E. instalment deductions were only $2 million short of the budget estimate but there were offsetting variations from the assumed changes in average earnings and average employment. In addition, the reduction in the rates of tax instalment deductions which operated from April 1972 had the effect of reducing P.A.Y.E. collections in May and June 1972. P.A.Y.E. refunds, however, were $31 million less than the budget estimate with the result that the net P.A.Y.E. revenue exceeded the estimate by $30 million. *Income Tax - Individuals - Collections on Assessments* Collections on assessments of income tax on individuals exceeded the budget estimate by $76 million because business incomes in 1970-71 (assessed to tax in 1971-72) were larger than estimated and collection rates were greater than had been assumed at the time of the budget. In addition, collections on assessments of prior years were greater than had been estimated. {:#subdebate-72-2} #### Income Tax - Companies Company income tax collections fell short of the estimate by $37 million because company incomes in 1970-71 (assessed to tax in 1971-72) were less than estimated. {:#subdebate-72-3} #### Estate Duty Collections of estate duty were $11 million less than estimated because the average value of assessments was lower than expected. {:#subdebate-72-4} #### Other Revenue There were some significant but largely offsetting variations *in the* components of other revenue, resulting in a relatively small net shortfall of $2 million from the budget estimate. Receipts from the defence departments were, in total, $7 million greater than estimated mainly because of higher than expected returns from disposals of stores and also because an amount of about $2 million was received in compensation for an 'Orion' aircraft destroyed in the United States of America in 1968. Repayments of interest and principal on War Service Homes advances, net of refunds under S.39a(2) of the Act, were $5 million more than estimated because of a higher than anticipated rate of repayment. Miscellaneous revenue from the Australian Capital Territory and receipts of interest and principal repayments under the war service land settlement scheme were each $2 million greater than the budget estimate. Consolidated Revenue Fund receipts from Reserve Bank profits in 1971-72 fell short of the budget estimate by $17 million, reflecting certain consequences of changes in international currency values during the year. Net receipts from Commonwealth Railways were $4 million less than estimated because operating costs were higher and revenue was less than expected. {: .page-start } page 106 {:#debate-73} ### FINANCING TRANSACTIONS The following table is a summary of financing transactions in 1971-72: >Includes Stale domestic loan raisings. > >Includes Treasury Notes issued to the Reserve Bank to finance advances to the Australian Wheat Board. > >Includes amounts available to the Commonwealth from coinage and bullion transactions, amounts borrowed by Commonwealth trust accounts and amounts available from moneys held in trust. (</) A negative sign signifies an increase in cash balances. Details of the 1971-72 financing transactions are given below: *Net Drawings under. Credit Arrangements for Defence Purchases in the United States of America* The Loan (Defence) Acts of 1966, 1968, 1970 and 1971 authorised the Commonwealth to finance defence equipment purchases in the United States of America on extended payment terms. In 1971-72 drawings under these arrangements totalled $46 million. Repayments of previous drawings amounted to $63 million. *Net Drawings under Credit Arrangements for Aircraft Purchases- Qantas Airways Limited and the Australian National Airlines Commission* Drawings on aircraft loans arranged on behalf of Qantas Airways Limited and the Australian National Airlines Commission amounted to $74 million and $10 million respectively, exceeding repayments of previous drawings by $50 million in the case of Qantas Airways Limited and $1 million in the case of the Australian National Airlines Commission. {:#subdebate-73-0} #### Net Proceeds of Other Overseas Borrowing Redemptions and other expenditure on the reduction of debt overseas totalled $109 million and exceeded the proceeds of $26 million from a West German loan. Two maturities in London were redeemed at a cost of $53 million and a maturity in New York was redeemed at a cost of $8 million. Securities to the value of $29 million were repurchased in New York, London and Canada. Repayments of $19 million were made on borrowings from the International Bank for Reconstruction and Development, the U.S. Export-Import Bank and the Netherlands. *Net Proceeds of Loan Raisings in Australia* Four Commonwealth public cash loans were raised in Australia in 1971-72. After excluding loan proceeds from advance subscriptions received before 30 June 1971 but including receipts from outstanding instalments and advance subscriptions received up to 30 June 1972, the proceeds from these cash loans totalled $754 million. Cash proceeds from the sale of Special Bonds during the year totalled $139 million. Proceeds of $24 million from State domestic loan raisings brought total cash proceeds from loans raised in Australia to $917 million. Of the $890 million of securities (other than Special Bonds) maturing in Australia which were offered for conversion in 1971-72, an amount of 589 million was redeemed. Redemptions of Special Bonds of all series amounted to $92 million. Other redemptions, market repurchases and contractual repayments in Australia amounted to $15 million. Total redemptions and repurchases in Australia were, therefore, $197 million, so that net proceeds of loans raised in Australia in 1971-72 were $720 million. *Net Change in Treasury Notes on Issue* As at 30 June 1972 Treasury Notes on issue amounted to $260 million, a net decline of $10 million on the amount on issue at 30 June 1971. The Treasury Notes on issue at 30 June 1971 included $119 million to provide finance to the Australian Wheat Board compared with an amount of $65 million on issue at 30 June 1972 for this purpose. Treasury Notes on issue, other than for Wheat Board financing, therefore increased by $43 million. *Net Repayment by the Australian Wheat Board* An advance of $86 million to the Wheat Board in April 1972 to enable repayment to the Rural Credits Department of the Reserve Bank of the balance of the 1970-71 pool borrowings was financed by the issue of Treasury Notes to the Reserve Bank. Repayments received by the Commonwealth from the Wheat Board during 1971-72, amounting to $139 million, were applied to the redemption of Treasury Notes. {:#subdebate-73-1} #### Other Financing Transactions An amount of $38 million was available from these transactions. The largest item was an amount of $24 million relating to Post Office superannuation. The amount available from coinage transactions, $11 million, related partly to the sale overseas of silver recovered from coin withdrawn from circulation. {:#subdebate-73-2} #### Residual Financing Largely because of the record net amount available from loan raisings in Australia, the proceeds of the financing transactions mentioned above exceeded the deficit by $567 million. Accordingly, Commonwealth cash balances increased by $567 million. {: .page-start } page 108 {:#debate-74} ### STATEMENT No. 7 - COMMONWEALTH BUDGET TRANSACTIONS {: .page-start } page 108 {:#debate-75} ### SINCE 1962-63 The tables shown later in this Statement set out Commonwealth budget receipts and expenditure in both 'conventional' and national accounts form. Comparisons of budget revenues and expenditures between 1971-72 and 1972-73 and between 1971-72 and previous years are affected by the transfer of pay-roll tax to the States as from 1 September 1971. Details of the arrangements relating to the transfer of pay-roll tax are set out in the document Commonwealth Payments to or for the States 1972-73' presented concurrently with the budget. Although the full effects of the pay-roll tax transfer are not readily eliminated from the series, estimates of the impact of the transfer on Commonwealth revenues and expenditures in 1971-72 and 1972-73 have been made and are presented later in this Statement. For the years prior to 1971-72, the figures on Commonwealth budget transactions are broadly consistent, subject to the qualifications outlined in the notes to the tables. Tables 1 and 2 on pages 116 and 117 show Commonwealth expenditures, receipts and financing transactions in 'conventional' form for each year since 1962-63. This presentation is essentially a rearrangement of the transactions of the three Commonwealth Funds within the Public Account (Consolidated Revenue Fund, Loan Fund and Trust Fund). Table 3 on pages 118 and 1 19 shows figures in national accounts form for each year since 1962-63. In this form, transfers between different parts of the Commonwealth's accounts are eliminated and additional detail included so that the figures shown relate to the transactions which occur between the Commonwealth Government and the rest of the economy or overseas. The national accounts figures therefore show government transactions classified into economically significant categories, corresponding with those presented in the White Paper on National Income and Expenditure. The Commonwealth contributes to the growth of public sector outlays both directly through its budget expenditures and indirectly through the operations of its instrumentalities in the non-budget sector. The following table shows details of the average annual rates of growth of the main components of *Commonwealth budget outlays,* for the period 1962-63 to 1971-72, compared with the average annual rate of growth in gross national expenditure over the same period. These figures show the somewhat faster growth rate of total budget outlays relative to that of gross national expenditure. The transfer of pay-roll tax to the States and the associated reduction in financial assistance grants paid by the Commonwealth has, moreover, had the effect of reducing the average annual growth rates of transfer payments and hence total Commonwealth budget outlays. It is estimated that in the absence of the transfer, total Commonwealth budget outlays would have grown at an annual average rate of 10.7 per cent, whilst the average annual growth rate of transfer payments would have been 11.2 per cent. Net expenditure on goods and services has clearly been the fastest growing component of total outlay, averaging an annual rate of increase over the decade to 1971-72 of 12 . 7 per cent. This is indicative of a significant increase in the Commonwealth's direct call on resources over the period, and reflects, in turn, the increasing demands made by the community on the Government. It is to be noted in this connexion, however, that a large part of Commonwealth outlay is in the form of transfer payments, such as payments of pensions, subsidies and interest and grants and net advances to other sectors of the economy. In 1971-72, such payments amounted to almost three-quarters of the total Commonwealth outlays. This is an important distinction, since the effect on the economy of these transfers and advances naturally depends on the reactions of the recipients. Growth in the relative size of the public sector as a whole (that is, Commonwealth, State and local government) cannot, of course, be assessed by reference to Commonwealth budget outlay figures alone. Estimates of total public sector outlay as a proportion of gross national expenditure, together with figures for the proportion of gross national expenditure represented by total public sector expenditures on goods and services, are set out in the following table. There is a minor break in the series in 1967-68 arising from the inclusion of expenditures relating to a number of small semi-government authorities. This change tends to inflate slightly the proportions shown for the years following 1967-68. Total public sector outlays as a percentage of gross national expenditure grew from 29.3 per cent in 1962-63 to 33.2 per cent in 1971-72. The major lift in public sector outlays relative to gross national expenditure occurred in the period 1965-66 to 1967-68 reflecting, among other things, expenditures on major defence re-equipment programmes. Since that time, the share of total public sector outlays has remained relatively stable, with the increase in 1971-72 affected in part by the slowdown in private sector expenditures. Similarly, the *direct* demands placed on resources by the public sector have grown unevenly over the period. After the relatively strong growth from 18.8 per cent in 1962-63 to 22 .0 per cent in 1967-68, public sector expenditure on goods and services as a proportion of gross national expenditure has remained relatively stable - fluctuating between 21.4 per cent and 22.5 per cent. The apparent stability in the relative share of public sector expenditures in gross national expenditure over recent years, however, masks somewhat divergent movements in the major components of public sector expenditures. *Current* expenditure on goods and services, for example, has steadily increased its relative share in gross national expenditure from 10.1 per cent in 1962-63 to 13.5 per cent in 1971-72. By way of contrast, public *capital* expenditures as a proportion of gross national expenditure rose from 8.7 per cent in 1962-63 to reach a peak of 9.7 per cent in 196S-66, but have since declined as a proportion of gross national expenditure to account for 9.0 per cent in 1971-72. Over the decade to 1971-72, increasing priority has been given to both current and capital expenditures for the provision of basic community services such as education, public health and welfare and communications. In 1971-72, education accounted for 26.2 per cent of total public sector current expenditures on goods and services, and public health and welfare 14.2 per cent, whilst almost one half of total capital expenditures in 1971-72 was directed to the provision of transport and communication facilities. In the mid 1960s the proportion of total public authority current expenditures devoted to defence increased substantially; however, the rate of growth in these expenditures slowed in the latter part of the decade as major re-equipment programmes were completed. The allocation of funds to the various social objectives of education, health, and the provision of public utilities may also be examined in terms of the so-called 'conventional' budget classification. Although provision for these objectives is in large part the responsibility of the States, the Commonwealth provides a significant part of the financial resources enabling such provision to be made by the States. The allocation to the States of funds which are spent mainly in areas of prime State responsibility such as the provision of education and health services, the construction and maintenance of roads, and the provision of housing, water supply and sewerage facilities, can be seen by reference to the following table which is in the conventional budget classification. As the following table shows, $1,673 million or almost one third of the total increase of $5,301 million in Commonwealth expenditures over the decade to 1971-72 is attributable to payments to or for the States and works and housing programmes. Some of these funds are provided for specific purposes, but the allocation of the larger part of them rests with the States. The main *absolute* growth in expenditures after payments to or for the States has been in respect of the provision of social service benefits, provided via the National Welfare Fund. Almost one fifth of the total increase in Commonwealth expenditure between 1962-63 and 1971-72 has related to this item. The provision of new and increased social service benefits, including the introduction of the tapered means test, and the extension of existing schemes have all contributed to the growth in National Welfare Fund payments over the period. Expenditure on defence services accounted for a further 14. 8 per cent of the total increase in Commonwealth expenditures over the decade to 1971-72. The major re-equipment programmes of the mid 1960s account for a significant portion of the growth of defence expenditures. In terms of growth rates, the top-ranking expenditures for the decade were Commonwealth payments to industry (20.9 per cent per annum); expenditure on Commonwealth Territories (16.8 per cent per annum) and departmental running expenses (15.3 per cent per annum). At the lower end of the scale, expenditures on repatriation services have, despite substantial increases in benefit rates, grown at an average rate of only 6.3 per cent per annum, mainly because there has been only a slow increase in the number of beneficiaries. The growing range of support provided to rural industry has been the main factor accounting for the above average increase of 20.9 per cent per annum in direct Commonwealth payments to industry. The increase of $88 million - an average of 16.8 per cent per annum - in expenditure on Commonwealth Territories largely reflects the cost of servicing the rapid growth of Canberra and Darwin. Over the decade to 1971-72 total Commonwealth employment is estimated to have grown at more than double the rate for total civilian employment. This rate of increase in government employment, associated with a rapid growth in wages and salaries, particularly during the latter half of the decade, is reflected in the average annual growth rate of 15.3 per cent in departmental running expenses. On the receipts side, *Commonwealth* budget receipts in national accounts terms have increased at an annual average rate of 11.5 per cent - rising from 20.5 per cent of gross national expenditure in 1962-63 to 24.8 per cent in 1971-72. The following table shows the composition of the increase in Commonwealth budget receipts, in national accounts terms, over the period 1962-63 to 1971-72, together with the average annual rates of growth for the individual revenue headings. In absolute terms, the increase in income tax collections from individuals outranked all other sources of revenue, accounting for about 48 per cent of the increase in total receipts over the decade to 1971-72. By far the larger part of the increase was in respect of net pay-as-you-earn income tax from wage and salary earners, reflecting the operation of the progressive rate scale in a period of strong growth in wage and salary incomes. The average annual rate of growth in net receipts from this source was no less than 17.4 per cent compared with an average annual growth rate for total receipts of 11.5 per cent. Revenue from company income taxes also increased more rapidly than total receipts, having an average annual rate of growth of 12.4 per cent over the period and accounting for 17.9 per cent of the total increase in receipts. By way of contrast, indirect tax revenues increased at an average annual rate of 8.4 per cent over the decade and accounted for 23.4 per cent of the total increase in revenues. To some extent the relatively slow growth in revenues from this source is the result of the transfer of pay-roll tax to the States as from 1 September 1971. However, after adjustment to remove the effects of this change, indirect tax revenues still show an average rate of growth over the decade which is significantly lower than the rate of growth of total receipts. This arises largely because expenditures on taxable items have increased less rapidly than incomes and because many products are subject to specific rates which have been changed only at irregular intervals. Over the decade to 1971-72, the Commonwealth has consistently incurred a deficit on its budgetary transactions. The size of the deficit, however, has fluctuated from year to year, reaching a peak of $642 million in 1967-68 and a low of $7 million in 1969-70. Any economic assessment of these budget results would, of course, have to take into account the composition of domestic receipts and expenditures in each year because of the differing economic impact of particular types of expenditure and receipts, the proportion of expenditures made overseas, and the level of activity in the economy at the time. The main financing transactions, undertaken to meet the deficits in the Commonwealth budget over the period have been domestic and overseas loan raisings, the issue of Treasury Notes and temporary borrowings from the Reserve Bank. Net loan proceeds from overseas reached a peak of $142 million in 1968-69, in spite of a large reduction in the net amounts available from drawings against defence credits and aircraft loans. In subsquent years, however, redemptions and repayments of debt overseas have exceeded gross loan proceeds. Net proceeds from loan raisings in Australia and Treasury Notes reached a peak of $711 million in 1971-72 - the previous maximum during the period was an amount of $506 million in 1962-63. {: .page-start } page 112 {:#debate-76} ### NOTES ON TABLES 1 AND 2: FIGURES IN 'CONVENTIONAL' TERMS At the Premiers' Conference in June 1971 it was agreed that the Commonwealth would cease to levy pay-roll tax in the States as from 1 September 1971 and that the States would levy their own pay-roll taxes as from the same date. This decision resulted in a reduction in Commonwealth pay-roll tax revenues estimated at $253 million in 1971-72. To offset most of this loss in revenue to the Commonwealth, financial assistance grants paid to the States in 1971-72 were reduced. The full year effect of these transfer arrangements is reflected in the estimates for 1972-73. Details of the arrangements concerning the transfer of pay-roll tax to the States are given in the document 'Commonwealth Payments to or for the States 1972-73' presented with the budget. To assist meaningful comparisons of receipts and expenditures in 1971-72 and 1972-73 with those in previous years, the following table shows the estimated percentage increases in Commonwealth receipts and expenditures in each year approximately adjusted to account for the pay-roll tax transfer. Numerous changes have been made in the accounting arrangements of the Commonwealth Government since 1962-63. 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 that remain are: Other inconsistencies remaining do not involve substantial sums and are unlikely to affect significantly the comparability of the figures. {:#subdebate-76-0} #### Expenditures and Receipts The figures for expenditures in Table 1 exclude redemptions of debt of the Commonwealth and some transfers made to trust accounts such as transfers made to the Loan Consolidation and Investment Reserve. As a number of changes have been made over the period to the classification of expenditures, figures included in these tables differ from those in previous budget documents. The following notes refer to the larger adjustments which have been made to the figures of expenditures and receipts appearing in the budget documents for earlier years: {: type="a" start="a"} 0. the figures for the years 1962-63 to 1967-68 have been adjusted to take account of an alteration in the accounting arrangements for the Post Office. A single ptyment representing the net funds provided from the Consolidated Revenue Fund i < w included under the item Advances for Capital Purposes. The figures for Other Expenditures and Other Revenue are also affected; 1. operating expenditures of the Commonwealth Railways are no longer shown separately. They have been offset against revenue in order to show net receipts from this business undertaking; 2. 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 item 'Net Increase in Other Balances of the Commonwealth in the Trust Fund'; 3. as a result of the transfer of pay-roll tax to the States, export incentives which were previously in the form of rebates of pay-roll tax, are now provided directly by way of export incentive grants. The accounts have been adjusted back to 1962-63 so that export incentives are no longer shown as an offset to pay-roll taxation receipts but rather as part of Commonwealth expenditures under the heading 'Commonwealth Payments to Industry*. This treatment has the effect of increasing both 'Total Receipts' and 'Total Expenditures' in each year by equal amounts, thus leaving the overall budget outcome unchanged. {:#subdebate-76-1} #### Financing Transactions The following notes explain the composition of some headings in Table 2 which summarises the Commonwealth's financing transactions: {: type="a" start="a"} 0. the figures for loan proceeds and drawings on credit arrangements include the actual cash proceeds from loans, etc. credited to Loan Fund in 1971-72 or their equivalents for earlier years. The figures for loan proceeds in Australia include amounts raised through State domestic loan raisings but exclude amounts subscribed by the Commonwealth to Special Loans; {: type="1" start="6"} 0. the redemption and repayment items, both 'Overseas' and 'Australia', consist of outlays incurred in reducing the amount of debt outstanding (other than temporary borrowings by way of Treasury Bills and Treasury Notes). They include outlays on redemptions, repurchases and repayments from the National Debt Sinking Fund and outlays on redemptions, etc. from Loan Fund, from the Consolidated Revenue Fund and from the Canadian and Swiss Loan Trust Accounts; 1. the figures shown under 'Net Change in Treasury Notes on Issue' include Treasury Notes issued to the Reserve Bank to finance advances to the Australian Wheat Board and those shown under the heading 'Net Advance to Australian Wheat Board' represent the net change in the indebtedness of the Australian Wheat Board to the Commonwealth each year. {: .page-start } page 114 {:#debate-77} ### NOTES ON TABLE 3: FIGURES IN NATIONAL ACCOUNTS TERMS {:#subdebate-77-0} #### 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-77-1} #### Receipts *Taxation.* This heading includes, in addition to the larger items listed under the item Taxation' in Table 1, some minor taxes included in 'Other Revenue' in that table. Small amounts of expenditure are offset against receipts. *Interest, rent and dividends, etc.* 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. It 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 and buildings (other than houses), less acquisitions of sites and existing buildings. {:#subdebate-77-2} #### Deficit This item is the difference between total outlay and total receipts. It is financed by 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 and the Australian Wheat Board *plus* minor changes in other assets and liabilities. *la)* Comparisons between the figures for 1962-63 and 1963-64 are affected by accounting changes which had the effect of Increasing both expenditures and receipts by about $26,443,000 P «I ,^vSS!Je wjs 'ncreased by $26,445,000. On the expenditure side. Defence Services were increased by $13,032,000, Other Expenditures by $9,176,000, Departmental Running Expenses by $3,237,000 and Repatriation Services by about $1,000,000. The revised accounting arrangements also involved minor changes as between certain items of expenditure, including most ol those previously mentioned. (b) Comparisons between the figures ibr 1965-66 and 1966-67 are affected by accounting changes in 1966-67 arising from revisions to the National Debt Sinking Fund Act. In addition, the figures Tor 1966-67 and subsequent years have been adjusted for other accounting changes which occurred in 1968-69 and 1970-71. The net effect of these changes was to reduce bothexpcnditures and receipts in 1966-67 by $37,096,000. (c) Comparisons between 1970-71, 1971-72 and estimates for 1972-73 are affected by the decision taken at the June 1971 Premiers Conference with regard to the transfer of pay-roll taxation revenues to the States from 1 September 1971. *(d)* Includes expenditure financed or to be financed under credit arrangements with the United States of America: interest payments on drawings made under these arrangements are also shown under this heading. (*) Includes the proceeds of State domestic loan raisings. (/) Includes export incentive payments and rebates. *(g)* Other than advances to the States. (A) Includes revenues from estate, gift and stamp duties. V) excludes profits on realisation of investments and repayments of advances by the Australian Wheat Board. Overseas - Credit arrangements for defense purchases in the U.S. A. . . *Less* - repayments Net drawings Aircraft loans for Qantas and Australian National Airlines Commission *Less* - repayments Net drawings Other overseas loan pioceeds(s) .. .. *Less* - redemptions, etc.(a) Net proceeds Total net proceeds overseas Funds provided for International Monetary Fund Australia - Proceeds of loans raised in Australia(o) *Less* - redemptions, etc. Net proceeds of loans raised in Australia(o) Net change in Treasury Notes on issue(c) Net advance to the Australian Wheat Board Other financing transactionsta*) Residual Financing - Net increase in Treasury Bills on issue Net issue of other securities to the Reserve Bank Use of cash balances Total residual financing Total Australian financing transactions Total Financing Transactions {: type="a" start="a"} 0. Overseas 'refinancing' operations are treated in this table as adding to both loan proceeds and redemptions where they involve receipts into and outlays from Loan Fund. (6) Includes State domestic raisings. (c) Includes Treasury Notes issued to the Reserve Bank to finance advances to the Australian Wheat Board. («/) Includes funds obtained from coinage and bullion transactions, amounts borrowed by Commonwealth trust accounts, net amounts available from Commonwealth trust account transactions in Commonwealth Government securities, amounts available from moneys held in trust, etc. O) Reflects the substitution of $100 million of longer term securities for Treasury Bills on issue to the Reserve Bank. (/) Reflects the substitution of $80,000,000 of longer term securities for Treasury Bills on issue to the Reserve Bank and an additional borrowing from the Reserve Bank by the issue of $75,000,000 in securities other than Treasury Bills. {: .page-start } page 118 {:#debate-78} ### TABLE 3- RECEIPTS AND OUTLAY OF COMMONWEALTH BUDGET IN Outlay- Net expenditure on goods and servicesCurrent expenditure- Defence.. Repatriation Development of resources and assistance industry .. Civil aviation . . . Immigration .. . . Law, order and public safety Education .. . . . . Health and welfare . . Foreign affairs . . All other(a) , . . . . . Capital expenditure^) - Public enterprisesHouses and Bats . Other.. .. .. .. General government - Transport .. Other.. Total net expenditure on goods and services Transfer paymentsCash benefits to persons Grants to States . . . . . Interest paid .. Transfers overseas > SubsidicsC/) .. .. ., Grants for private capital purposes . , . . Total transfer payments Total expenditure .. .. Net advances - to States- Works purposes .. .. Housing .. . ., Other .. .. to Commonwealth authorities- Post Office S.M.H.E.A. . . Airlines Other.. to Other Sectors- by War Service Homes Other Total net advances .. Total Outlay .. .. Receipts - Taxation - Indirect taxes(/) Income taxes on companies . . Income taxes on persons- P.A.Y.E. Other Estate and gift duties Other direct taxes, fees, fines, etc.(A) Total taxation . . Other receiptsInterest, rent and dividends etc . . Gross income of public enterprises . , Net sales of existing assetsCO . Total other receipts .. Total Receipts Deficit 1962-63 S million 411 49 68 20 21 5 12 28 11 113 21 46 937 852 337 73 77 9 346 90 22 97 43 -6 3 53 15 407 34 739 81 820 2,285 3,105 438 139 663 3,770 1,227 338 684 399 42 26 2,915 441 3,336 415 1963-64 S million 486 51 77 22 25 5 13 28 12 (0)136 1 11 22 (<055 (0)856 W)89 946 1,028 896 361 87 108 9 2,489 3,435 373 92 23 103 46 -7 16 43 16 490 159 39 708 4,142 1,309 602 792 480 46 27 429 37 2 3,256 468 3,724 419 1964-65 S million 558 54 99 24 32 6 17 31 14 161 -2 16 28 62 997 104 1,102 1,080 958 390 107 96 26 2,657 3.759 400 93 26 116 44 23 9 39 17 519 192 36 767 4.527 1,458 725 991 379 49 32 471 39 3 3,833 511 4,343 183 1965-66 8 million 684 60 110 24 33 7 20 33 17 178 5 19 36 60 1,156 1,076 409 127 142 47 405 107 35 139 41 17 12 39 14 1,613 818 1,160 S70 42 34 315 44 1966-67 1967-68 1968-69 1969-70 1970-71 1971-72 1972-73 Estimate S million 877 66 119 27 3S 10 22 42 18 214 3 32 43 63 1.246 1,183 432 151 166 45 1,431 142 S million 1,041 71 128 31 38 12 29 49 23 239 5 34 48 76 1,660 163 S million 1,078 76 146 33 S3 14 35 55 26 267 6 29 61 84 1,782 180 % million 1,017 83 156 38 59 17 42 66 31 302 $ million 1,069 92 177 43 60 20 57 6 31 63 86 1,811 187 35 343 9 34 76 105 1,976 224 S million 1,136 108 198 50 51 25 69 95 41 405 1 40 62 120 2.178 222 $ million 1,244 119 218 55 54 27 82 110 45 451 249 1,573 1,823 1,962 1,998 2,200 2.401 1,406 1,419 502 159 261 32 1,598 1,620 546 180 247 34 1,771 «2,207 576 185 309 37 2,055 0)2,373 616 205 382 43 2,417 (*)2,716 649 234 338 56 3,223 3,472 3,779 4,224 5,084 5,674 4,796 5,295 5,741 6,222 7,284 8.075 437 109 28 179 47 18 7 25 22 574 251 47 460 111 38 203 39 49 *3* 10 20 629 296 30 484 113 28 205 30 -12 13 lt 20 625 235 31 518 118 31 233 33 -16 21 11 25 667 271 36 366 126 28 247 27 20 46 17 30 520 340 47 533 53 270 16 52 37 17 47 587 375 64 586 58 288 10 ug 23 43 871 955 891 974 907 1,025 5,667 6,250 6,633 7,195 8,190 9,101 1,702 807 1,324 597 49 36 558 47 -2 1,507 668 A3 37 2,035 1.039 1,727 650 70 43 4,314 603 583 47 -2 4.981 628 642 50 -7 5,564 685 2,244 1,197 2,084 771 80 46 711 52 3 6,422 766 2,502 1,444 2,432 743 78 47 800 60 11 7,245 870 2,525 1,535 2,889 876 76 58 885 62 8 2,620 1,564 3,278 926 75 63 7,959 954 (0938 65 2 3,116 5,608 6,248 7,188 8,115 8,914 552 642 385 75 187 (/) Following toe transfer of the pay-roll tax to the States, the export incentive scheme will operate in r______________ in 1971-72 and subsequent years through direct payments from the Commonwealth, rather than by way of rebates of payroll tax. To facilitate year to year comparisons, figures for 'Indirect taxes' have been adjusted to include pay-roll tax collections on a gross basis. 'Subsidies' have been adjusted by corresponding amounts to include rebates of pay-roll tax under the export incentive scheme. {: .page-start } page 120 {:#debate-79} ### STATEMENT No. 8- EXTERNAL AID As indicated in the table on the next page, a total of $220,086,000 has been provided for expenditure on economic aid to developing countries in 1972-73. This is $20,262,000, or 10.1 per cent, greater than actual expenditure in 1971-72. The totals shown in this table differ from those quoted in Statement No. *4* - Estimates of Expenditures, 1972-73 by virtue of the inclusion of direct expenditures of an economic nature by various Commonwealth Departments and instrumentalities in or in connexion with Papua New Guinea (which are subsumed under other headings in the Budget); the inclusion of the voluntary contribution which Australia makes towards the technical assistance activities of the International Atomic Energy Agency; the exclusion of expenditures on the training of military personnel under Special Aid to the Khmer Republic; and the exclusion of expenditures relating to developed countries under the Commonwealth Cooperation in Education Scheme. {:#subdebate-79-0} #### Multilateral Aid Expenditures on multilateral aid programmes are estimated to increase by $6,20 1 ,000 to a total of $17,901,000 in 1972-73. Although the agreement governing the third replenishment of the resources of the International Development Association has still not entered into effect, calls on Australia's previous contributions to the Association, including the voluntary contribution of $US16 million made in November 1971, are expected to total $8,398,000 this year, or $1,534,000 more than in 1971-72. An amount of $3,036,000 has been provided in the Budget to meet the first instalment of the paid-in portion of the proposed increase in Australia's subscription to the capital stock of the Asian Development Bank as set out in the Asian Development Bank (Additional Subscription) Bill now before Parliament: no similar payment was made in 1971-72. Total calls on Australia's existing contribution to the Multi-Purpose Special Fund of the Asian Development Bank and a proposed further contribution of $US250,000 to its Technical Assistance Special Fund this year are together expected to result in expenditures $1,223,000 greater than in 1971-72. The estimates also provide for increases in Australia's pledges to the U.N. Children's Fund, the U.N. High Commission for Refugees and the U.N. Development Programme in 1973. The estimated increase of $283,000 in expenditure on the International Rice Research Institute at Los Banos in the Philippines in 1972-73 relates to the design, purchase and installation of a phytotron to assist research activities at the Institute. *Bilateral Aid (excluding Papua New Guinea)* Expenditures on bilateral aid programmes (excluding bilateral aid to Papua New Guinea) are estimated to increase by $6,042,000 to a total of $57,446,000 in 1972-73. The provision for expenditure on multifarious aid projects undertaken in developing countries in South and South East Asia under the Colombo Plan will be increased by $5,271,000, while that for the training of overseas students and officials from these countries in Australia will be $423,000 greater than in 1971-72. Special Aid to Indonesia, which is basically used to finance ad hoc gifts of commodities, Devisa Kredit (D.K.) aid and the costs of shipping to Indonesia the large quantities of wheat and flour given to that country as part of Australia's commitment under the Food Aid Convention of the International Wheat Agreement, will be increased by $2,051,000 to $12 million in 1972-73 to complete the current three-year aid commitment to that country. Plans are underway for the CSIRO to help establish a major animal husbandry research institute in Indonesia in the near future. In all, bilateral aid worth more than $20 million will be provided to Indonesia in 1972-73, compared with $17,824,000 in 1971-72, making that country by far the largest recipient of aid from Australia at the present time, excluding Papua New Guinea. Expenditures on the South Pacific Aid Programme and the Commonwealth Co-operation in Education Scheme are estimated to increase by $604,000 and $152,000, respectively, in 1972-73 in accordance with the programme to provide a total of $15 million in bilateral aid to developing countries in the South West Pacific in 1972-73 and the following three financial years. Fiji is expected to be the major recipient. A total of $2 million, or 5485,000 more than in 1971-72, will be provided for Rehabilitation and Relief Aid to Bangladesh in 1972-73; {: type="a" start="a"} 0. To the extent that these expenditures relate to the purchase of Commonwealth assets in Papua New Guinea their effects on the Budget in 1972-73 will be offset by equivalent receipts. in addition, at least $2 million worth of food aid in the form of wheat or flour will be provided to that country this year. Finally, the provision for Special Aid to the Khmer Republic has been increased by $134,000 to cover the cost of supplying earthmoving machinery, telecommunications equipment and other aid items to that country, as well as the pledge by Australia to contribute $US1 million in 1972 to the Exchange Support Fund which was recently set up to help stabilise the Khmer economy. Other aid will also be provided to the Khmer Republic under the Colombo Plan in 1972-73. Offsetting these increases to some extent, there will be reductions of $621,000 in estimated calls during 1972-73 on Australia's contribution to the Indus Basin Development Fund; of $188,000 in the provision for Australia's food aid commitment under the International Wheat Agreement, reflecting the fact that slightly more than 223,000 metric tons of wheat or flour equivalent was shipped in 1971-72 with consequential savings this year; of $2,300,000 in Emergency Relief for East Pakistan Refugees in India, since this item is no longer required following the cessation of hostilities and the return of the refugees to their homes; and of $1 10,000 in Special Aid to South Vietnam, since the project for which this item was originally created (viz. the construction of houses for dependants of members of the Regional and Popular Forces in Phuoc Tuy province) has now been completed - other aid will, of course, continue to be provided to South Vietnam under the Colombo Plan and SEATO Aid programme in 1972-73. {:#subdebate-79-1} #### Papua New Guinea Normal grant aid to the Administration of Papua New Guinea will be increased by $13,131,000, or 12.1 per cent, to a total of $121,300,000 in 1972-73. The basic Grant-in-aid will remain constant at $30 million but the Development Grant will be $8,625,000 greater and the provision for Allowances and Other Benefits for Overseas Officers employed in the Papua New Guinea Public Service will be increased by $4,506,000 to permit an expansion in recruitment and also allow for the flow-on effects of recent wage increases granted in Australia. There will be no payments in respect of the Arawa loan in 1972-73 as this was fully drawn last year. However, an interest-free loan of $3 million repayable over 15 years including a grace period of three years will be provided to the Administration in 1972-73 to enable the Papua New Guinea Investment Corporation to purchase the shares in Commonwealth New Guinea Timbers Ltd (a plywood manufacturing concern at Bulolo) which were previously held by the Commonwealth. In addition, special financial assistance estimated at $3,500,000 will be provided to the Administration this year to enable it to take over the functions previously performed in Papua New Guinea by certain Commonwealth Departments and instrumentalities which are being withdrawn as the move towards self-government and eventual independence proceeds: a large part of this amount will be devoted to the purchase of Commonwealth assets in Papua New Guinea. The provision for on-the-job training of Papua New Guineans in Australia has been increased by $212,000 to a total of $450,000 in 1972-73 and a further $500,000, or $414,000 more than in 1971-72, has been provided for the training of Papua New Guineans in administrative principles and procedures etc., at the Australian School of Pacific Administration (ASOPA), which was recently adapted for this purpose. Finally, expenditure on flying training scholarships for indigenous pilots in Papua New Guinea is estimated to be $50,000 greater in 1972-73. {:#subdebate-79-2} #### Other Aid Expenditures No allowance has been made in the foregoing table for the large subventions which the Commonwealth and State Governments provide each year for various educational institutions in Australia which are attended by several thousand overseas students, most of whom come from developing countries. The imputed costs involved in this 'hidden aid subsidy' are estimated to exceed $10 million per annum at the present time. Similarly, the figures in the table do not allow for the fact that parts of Australia's contributions to the regular budgets of a number of international organisations (included elsewhere in the Budget) are used to finance aid projects in developing countries - the annual amounts involved here are currently estimated to approach $1 million. Nor has any allowance been made for the costs incurred in administering Australia's various external economic aid programmes. In all, these costs, which are subsumed in Departmental Running Expenses, are tentatively estimated to be about $8 million per annum at the present time. {:#subdebate-79-3} #### Defence Aid Australia is also providing increasingly large amounts of defence aid to developing countries in South East Asia, not counting expenditures directly related to the presence of Australian forces in certain of those countries. In 1972-73, for example, in addition to the substantial amounts being expended to develop Papua New Guinea's Defence Force, a total of $13,547,000 will be provided for defence aid and co-operation with certain South East Asian countries. This figure includes estimated expenditures on the training of military personnel under Special Aid to the Khmer Republic. The principal recipients will be Malaysia, $6,200,000; Indonesia, $3,800,000; South Vietnam, $2,164,000; and Singapore, $963,000. An amount of $250,000 has also been provided for military training in Australia of personnel from other countries. To the extent that this defence aid releases domestic resources that the recipient countries would otherwise have used for the same purpose, it may indirectly help them to achieve faster rates of economic growth and development. Historical Growth in External Economic Aid The following table summarises the growth in expenditures on economic aid to developing countries, including Papua New Guinea, since 1962-63. {:#subdebate-79-4} #### Australia's Relative Aid Performance International comparisons of aid performances by different donor countries are subject to numerous reservations because of conceptual problems and statistical difficulties. Some of these were outlined in Statement No. 8 attached to the 1971-72 Budget Speech. Nevertheless, leaving *defence* aid on one side as this does not necessarily contribute to economic growth and well-being in recipient countries, the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development regularly publishes data on this subject in an attempt to provide some measure of burden-sharing and to compare the relative aid efforts by its member countries, including Australia, in helping to raise living standards in developing countries. The following table compiled by the DAC shows the performance of member countries in recent years in terms of the net flow of total official and private resources to developing countries expressed as a percentage of Gross National Product. On the basis of that yardstick, Australia, with a provisional figure of 1 .27 per cent in 1971 (compared with 1 .22 per cent in 1970) is currently ranked third in the world. However, as the figures for Australia itself and for other countries confirm, such flows can and do fluctuate widely from year to year, largely for reasons beyond the influence and control of governments. In Australia's case, for example, the sharp jump in the figures for 1970 and 1971 resulted principally from the large private capital flows to Papua New Guinea associated with the Bougainville copper project and from a substantial growth in private export credits, primarily related to wheat sales to developing countries, much of which has been officially insured. For reasons which are well illustrated by these examples, this method of assessing relative aid performances leaves much to be desired. {: .page-start } page 124 {:#debate-80} ### NET FLOW OF TOTAL OFFICIAL AND PRIVATE RESOURCES TO DEVELOPING COUNTRIES AS A PERCENTAGE OF GROSS NATIONAL PRODUCT Note: The figures for 1970 and 1971 include estimated contributions by voluntary aid organizations and are, to that extent, not strictly comparable with those for earlier years. A far more meaningful way of assessing relative aid performances is to compare only the *official development assistance* provided by each donor country expressed as a percentage of Gross National Product. This concept excludes private investment flows as well as export credits (whether official or private) extended to developing countries and contributions by voluntary aid organizations, etc. It has certain deficiencies, from the point of view of a grant aid donor like Australia, in that it still lumps grants and loans together as if they were the same - which, of course, they are not - and fails to deduct interest payments by developing countries. Nevertheless, it is widely used as a measure of burden-sharing, etc. at the present time. On this basis, Australia ranked fourth in the world in 1971 with a figure of 0.52 per cent. Comparable figures for all DAC countries in each year since 1968 are shown in the following table:- {: .page-start } page 125 {:#debate-81} ### NET OFFICIAL DEVELOPMENT ASSISTANCE TO DEVELOPING COUNTRIES AS A PERCENTAGE OF GROSS NATIONAL PRODUCT The apparent deterioration in Australia's performance in 1971 resulted from a bunching of expenditures in the previous year which had the effect of distorting the underlying trend. Thus, the comparable figure for the financial year 1971-72 was 0.56 per cent. There seems little doubt that the figure for Australia in 1972 will be higher than that for 1971, given the further increases in aid which have been provided for in the Budget. In addition to volume, increasing emphasis is now also being placed on international comparisons of the terms on which official development assistance is provided, in view of the serious external debt servicing problems which many developing countries face at the present time. Australia's aid has always been provided on extremely 'soft* terms. Indeed, until a few years ago it was all given in grant form. Early in 1970, however, a loan of $20 million on concessional terms was approved for the Administration of Papua New Guinea to help finance the construction of a new township at Arawa in connexion with the Bougainville copper project. As previously mentioned in this Statement, a further loan of $3 million will be provided to the Administration in 1972-73. {: .page-start } page 126 {:#debate-82} ### STATEMENT No. 9 - COMMONWEALTH ASSISTANCE TO {: .page-start } page 126 {:#debate-83} ### 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 $56 million will be provided from Consolidated Revenue in 1972-73, 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. Assistance to improve the defence capability of Australian industry is provided in a number of ways from the Defence Vote. The Commonwealth has provided substantial assistance to the rural sector in recent years by way of natural disaster relief payments to the States, the largest of which has been reimbursement of State expenditure on drought relief schemes. A number of other specific purpose grants to the States also assist primary industries - for instance, payments for beef cattle roads, brigalow lands development, and water resources investigations and projects. In addition, a very considerable 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 provided mainly 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 over $740 million in 1971-72. {: .page-start } page 126 {:#debate-84} ### COMMONWEALTH PAYMENTS TO INDUSTRY These payments are estimated to amount to $367 million in 1972-73, compared with payments of about $204 million five years ago (1967-68) and about $73 million ten years ago (1962-63). The following table sets out details of expected Commonwealth payments during 1972-73 to (or for the benefit of) industry, together with comparative details of actual payments for two previous years, as summarised in Statement No. 4, Item No. 9. {:#subdebate-84-0} #### Commonwealth Payments to Industry {: type="a" start="a"} 0. No adequate dissection of these payments by industry of exporter is available. However, as the bulk of the p*yi"-nts related to manufactures, the whole amount has been included under Manufacturing Industries. (6) Figures shtvr are the amounts of pay-roll tax rebates refunded under the export incentive scheme. (The total amounts of rebates lIL/»vJ in 1970-71 and 1971-72 were $49,356,000 and $59,960,000 respectively, including rebates applied as credits agaiast tax as neil as rebates refunded.) The following comments cover the main variations and significant items shown in the table on the preceding page. {:#subdebate-84-1} #### Rural Industries *Raw Cotton Bounty.* An amendment in 1969 to the Raw Cotton Bounty Act provided that no further bounty would be payable after payments for the 1971 crop. Those payments were completed in 1971-72. *Apple and Pear Stabilization Scheme.* The provision of $3,150,000 for 1972-73 represents the estimated Commonwealth liability in respect of apples and pears shipped and sold 'at risk' in 1972. Of the estimated increase, $400,000 relates to an increase by 500,000 bushels, for this year only, in the quantity of fruit which may attract the maximum payout of 80 cents per bushel. *Butter and Cheese Bounties.* Payments are expected to decrease by $11,382,000 in 1972-73 s the special additional grants for 1970-71 and 1971-72 have not been renewed. *Marginal Dairy Farm Reconstruction Scheme.* For the second full year of operation of this four-year $25,000,000 scheme, the estimated requirements are $3,593,000 less than in 1971-72, reflecting an improved financial situation in the industry. *Devaluation Compensation.* The provision of $250,000 covers the estimated residual commitment of the Commonwealth to rural industries in respect of reduced returns in Australian currency arising from the 1967 devaluation of sterling and other currencies. Details of payments in past years, and payments expected in 1972-73, are: - *Dried Vine Fruits Stabilization.* The estimated increase of $1,524,000 reflects the expected need to support reduced average returns for a significantly greater sultana pack from the 1972 season. *Egg Industry Assistance.* The provision of $750,000 is for a one-year scheme of assistance to the egg industry. *Fruitgrowing Industry Reconstruction.* As recently announced, the Commonwealth has undertaken to provide over a period a total of $4,600,000 financial assistance towards the scheme for the removal of trees producing fruit deemed to be surplus to long-term market requirements. Expenditure of $2,000,000 in 1972-73 is forecast. *Nitrogenous Fertilizers.* It is proposed that this subsidy, which is due to expire on 31 October 1972, be extended to 31 December 1974. *Petroleum Products Prices- All States and Northern Territory.* The subsidy scheme is designed to reduce the wholesale prices of certain petroleum products in rural areas to within 3.3 cents per gallon of capital city prices. The estimated increase of $1,570,000 reflects an expected increase in consumption. *Rural Reconstruction.* The estimate of §56,000,000 for 1972-73 arises from an agreement that the Commonwealth would, in the second full year of the scheme, pay the balance of the $100 million total initially agreed to be provided to the States over a period of four years for debt reconstruction, farm build-up and rehabilitation. *Wheat Industry Stabilization.* The estimated decrease of $11,357,000 reflects the expectation that exports from the 1971-72 crop will attract a stabilization payment in 1972-73, whereas in 1971-72 there were stabilization payments in respect of exports from both the 1969-70 and the 1970-71 wheat pools. The expected payment in respect of the 1971-72 season is based on an estimated average export price of 128.3 cents per bushel, compared with the guaranteed return of 151.8 cents per bushel for 200 million bushels of exports. *Wool Deficiency Payments.* The estimate of $1,000,000 for 1972-73 represents the carryover in respect of 1971-72 sales under the scheme introduced last year. Although the scheme is being extended for a further year, no payments are expected in respect of 1972-73 sales in view of the improvement in woo) prices since early 1972. Expenditure is thus expected to decline by $51,802,000. {:#subdebate-84-2} #### Manufacturing Industries *Agricultural Tractors Bounty.* The amounts shown include the temporary additional bounty on the sale of eligible tractors. However, pending receipt and consideration of the Tariff Board's report on the industry, provision is included only for estimated expenditure in respect of tractors covered by the present legislation which is due to expire on 31 December 1972. *Shipbuilding Subsidy.* The main reasons for the increase of $20,310,000 are the higher rates of subsidy payable under the new arrangements announced on 31 May 1972, the extension of the subsidy to shipyards formerly not eligible, and an expected increase in the number and value of new ships to be ordered in 1972-73. *Sulphuric Acid Bounty.* The bounty expired on 31 May 1972. The estimated expenditure for 1972-73 represents final payments under the scheme. *Devaluation Compensation.* The scheme of assistance applied to exports up to the end of 1969 to markets affected by devaluation. Final payments under the scheme were made in 1971-72. *Export Incentive Payments.* The export incentive scheme is expected to involve an overall increase of $9,326,000 because of further increases in exports eligible for this assistance. Although the pay-roll tax was transferred to the States in September 1971, and the export incentive scheme was continued on the basis of grants to exporters, estimated payments in 1972-73 include payroll tax rebates in respect of earlier years' exports. *Industrial Research and Development Grants.* The 1972-73 estimate is for expenditure incurred in respect of the scheme which expired on 30 June 1972. Commonwealth expenditure under the new scheme, which commenced on 1 July 1972, will not occur until 1973-74. {:#subdebate-84-3} #### Mining Industries *Pyrites Bounty.* The bounty expired on 31 May 1972. The amount shown for 1972-73 represents final payments under the scheme. *Gold Mining Industry Assistance.* A producer's subsidy entitlement is reduced by half of the premium receipts from sale of gold on the free market at prices above the official price of $31.25 per fine ounce. The estimated decrease of $552,000 reflects an expectation of a higher level of premium receipts by subsidised producers. *Petroleum Search Subsidy.* The estimated increase of $2,428,000 reflects the March 1972 liberalisation of the subsidy scheme. {: .page-start } page 130 {:#debate-85} ### 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 are shown below. {: .page-start } page 130 {:#debate-86} ### COMMONWEALTH ASSISTANCE TO INDUSTRY THROUGH THE TAXATION SYSTEM The amount of revenue forgone in 1971-72 through the main taxation concessions for which figures are shown below, is estimated to have been more than $304 million. Most, though not all, of that amount is forgone through concessions in the income tax law, which are shown in some detail below. (Pay-roll tax rebates, under the export incentive scheme, in respect of exports in 1970-71 and prior years, are shown in the section headed 'Commonwealth Payments to Industry'.) Special estate duty reliefs for primary production estates were introduced in the financial year 1969-70. There are numerous concessions to industry in the sales tax field in the form of special exemptions. Most of the relevant concessions in the income tax field may be 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 (included in this category is the rebate for export market development expenditure, which gives a tax saving additional to the saving resulting from the deduction from income for this expenditure); 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 C those which exempt certain classes of income. The main provisions in each of these classes and the estimated amounts of revenue forgone in 1971-72 are shown in the table on page 80. The table does not include the cost of the averaging provisions applied to incomes of 'primary producers'. These provisions involve assessment at rates of tax which may differ from those otherwise applicable to the taxable income. They have the effect of reducing the tax otherwise payable in a year when taxable income exceeds the average of that year and the four preceding years. It may exceed the average because of fluctuations in income, or because incomes had generally risen over the period, or both. Conversely, if taxable income falls below average income, tax payable under these provisions is higher than it would otherwise be. Options allowed by the law to withdraw permanently from the averaging provisions, or to re-enter them, have enabled 'primary producers' to have applied either tax at general rates or tax under The table also takes no account of the effect on revenue of the drought bonds scheme which commenced in 1969-70. This scheme enables eligible pastoralists to reduce their taxable incomes in some years, by the amounts they subscribe to drought bonds, and increase them in later years, by amounts of redemptions. By evening out fluctuations in taxable income, the scheme can enable them to make an overall saving in tax. The cost of the scheme to revenue up to 30 June 1972 is estimated at about $600,000. Assistance to industry is also provided by the exemption from income tax of the remuneration of certain 'visiting experts' during a visit to Australia, where the remuneration is not free from income tax in the country where the visitor ordinarily resides. A related concession is the rebate which may be allowed in the case of visiting experts, which in effect reduces the Australian income tax payable on the visitor's remuneration to the amount of tax that he would have had to pay in his own country if he had earned the remuneration there. With increasing mining production and continuing expenditure on exploration, it is probable that there will be continuing and, in some cases, increasing costs to revenue of the various income tax concessions which apply to the mining and mining exploration industries. In particular, increased production of bauxite and the other prescribed minerals, income from which is partly exempted under section 23a, is likely to result in greater revenue losses in future years. Section 23a of the Income Tax Assessment Act provides for the exemption from income tax of one-fifth of the net income from the production or sale of certain prescribed metals and minerals. Also, with the growth in income from Australian petroleum (both oil and natural gas) there will be a continuing 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 its products, until capital expenditure incurred in finding and recovering the petroleum (other than such expenditure transferred for deduction against shareholders' income by reason of section 77d), has been recouped out of the mining profits. Dividends paid out of such tax-free income are exempt in the hands of shareholders of the mining and petroleum companies. {:#subdebate-86-0} #### Table of Main Income Tax Concessions Which Assist Industry {:#subdebate-86-1} #### Estimated Revenue Forgone *Categories are explained on page 78 in* 1971-72 S million {:#subdebate-86-2} #### Category A: Investment allowance - Manufacturing^) .. .. .. .. .. 4S.0 Primary production .. .. .. .. .. .. 7.0 {:#subdebate-86-3} #### Export Market Development Rebate .. .. .. 19.0 Certain capital expenditures on land used for 'primary production' and in timber operations (excluding items otherwise depreciable). Deductions for telephone lines allowed to 'primary producers' . . . . . . 10.0 Expenditure on scientific research (excluding accelerated depreciation on plant) .. .. 1.0 Moneys paid on shares - One-third of calls on mining or afforestation shares - sections 77c and* 78(D(b).............. L 48 0 Moneys paid on shares for the purpose of exploration, prospecting or *C* mining - section 77d Capital expenditure of certain mining enterprises and in respect of transport of certain minerals (excluding deductions in respect of plant otherwise depreciable) .. .. .. .. .. 68.0 {:#subdebate-86-4} #### Total Category A .. .. .. .. .. .. 198.0 {:#subdebate-86-5} #### Category B: Special depreciation allowable to 'primary producers' Allowance of immediate deduction for fencing and underground piping ) 12.0 instead of depreciation Special rate of depreciation on plant used for scientific research . . Deduction in year of purchase and/or appropriation of income for plant I « used in mining or exploration and in respect of transport of certain f minerals which would otherwise be subject only to depreciation . . J {:#subdebate-86-6} #### Total Category B .. .. .. .. .. .. 67.0(6) {:#subdebate-86-7} #### Category C: Exemption of certain mining profits Total of Categories A, B and C {: type="a" start="a"} 0. The investment allowance on manufacturing plant and equipment was suspended in respect of expenditure incurred during the period 4 February 1971 to 13 February 1972, unless it had been incurred under a contract made on or before 3 February 1971 with the supplier of the goods and services involved. 1. This estimate is based on the deductions allowable in the 1970-71 income year in respect of purchases and appro priations in that year len the depreciation that would have been allowable in that year on the relevant plant purchases or the plant in respect of which the appropriations were made. While the provisions in question do not allow any greater total deduction over the life of the plant and equipment than do the normal depreciation provisions of the income tax law, they result in a deferment of tax which involves a cost to the Commonwealth budget and a benefit, namely the provision of interest-free finance, to the taxpayers concerned. Normal depreciation allowances are designed to allow taxpayers to write off the cost of plant and equipment against income as the plant and equipment is used up in producing that income. The value of accelerated depreciation allowances to taxpayers depends on how much sooner they receive savings than would be the case if the allowances had been based on the usage of plant and equipment, and on the va'ue to them of having the use of these savings. Where there is a constant or increasing rate of investment in plant and equipment subject to accelerated depreciation, the concession virtually provides the taxpayers concerned with a revolving or increasing credit in their account wilh the taxation revenue. 2. This estimate is based on the exemption of income under section 23(o) - gold mining, section 23(e)- sale of rights to mine gold and other prescribed minerals, section 23a - one-fifth exemption of income from the mining of prescribed metals and minerals, and section 23c- exemption of income from certain sales of gold produced in Australia. {: .page-start } page 133 {:#debate-87} ### STATEMENT No. 10- COMMONWEALTH ASSISTANCE FOR SOCIAL WELFARE AND REPATRIATION {:#subdebate-87-0} #### Commonwealth Expenditure Commonwealth expenditure in the fields of social welfare and repatriation is brought together in the following table which shows actual expenditure in 1971-72, and estimated expenditure in 1972-73 including the cost of measures announced in the Budget Speech. In addition to expenditure contained in Item No. ) - Payment to National Welfare Fund and Item No. 4 - Repatriation Services in Statement No. 4, this table includes certain expenditure contained in other Items in that Statement. Details of the components of these broad headings are given below. {:#subdebate-87-1} #### Social Services Expenditure under this heading comprises amounts charged to the National Welfare Fund and other social services expenditure provided for by annual appropriations or by separate legislation. Details *et* expenditure charged to the National Welfare Fund are contained in Item No. 3, Statement No. 4. The totals of these expenditures are repeated in the following table which also gives particulars of other social services expenditure. Health Services Certain expenditure on health services is met from the National Welfare Fund. Details are shown in Item No. 3, Statement No. 4. Other expenditure is provided for by annual appropriations or by separate legislation. The following table shows the total of the National Welfare Fund expenditure on health services and particulars of other national health services items not charged to the Fund. Commonwealth Assistance Through the Taxation System The Commonwealth's direct expenditure on social services, health, housing and repatriation benefits and services (estimated at 82,529,238,000 in 1972-73) is not a full measure of the cost to the Commonwealth Of its welfare and repatriation assistance. In addition, there are certain taxation concessions having welfare aspects granted to taxpayers under the income tax law and the sales tax law. Some of these concessions (for example, dependants allowances) are related also to other considerations (for example, the differing ability to pay' of persons on the same income but with varying numbers of dependants) and their summation below does not imply, therefore, that they are entirely of a welfare nature. Income tax provisions of these kinds are set OUt below. Sales tax exemptions are available for certain purchases by approved bodies such as public benevolent institutions and by certain disabled persons. The amount of revenue forgone in respect of the 1970-71 income year through the main income taxation concessions of a welfare or part-welfare nature is estimated at $788 million. The main concessions, together with the estimated amounts of revenue forgone, are listed below: - {: type="a" start="a"} 0. In estimating the revenue forgone in respect of the above group of deductions of a welfare nature (which relates to amounts allowed to taxable individuals) the total cost of the group has been estimated and the resulting amount apportioned to the component classes of deduction. {: type="1" start="6"} 0. The maximum deductions allowable for each class of dependant in the 1970-71 income year were as follows: - {: type="a" start="c"} 0. There was a maximum deduction in the 1970-71 income year of $100 for funeral expenses in respect of a taxpayer's spouse, children under 21 or dependants. 1. Relates to deductions which an employee or self-employed taxpayer may claim up to a specified maximum ($1,200 in the 1970-71 income year) each year for contributions to a superannuation scheme or for premiums for life assurance, accident and sickness policies, etc. Superannuation contributions on which revenue is forgone may later give rise to retirement income which is assessable to tax, in whole or in part. 2. For the 1970-71 income year, complete exemption from tax applied where an aged taxpayer's taxable income did not exceed $1,326 or, if he was married, the combined taxable incomes of the taxpayer and his spouse did not exceed $2,314. Shading-in provisions provided a gradual transition to normal rates of tax Up to the limits of $2,273 of taxable income for a single taxpayer and $4,102 of combined taxable income for a taxpayer and bis spouse. *(J* )The estimate of revenue forgone relates only to taxable individuals and those non-taxable individuals who lodged returns in respect of the 1970-71 income yeal'. 136 *Appropriation Bill (No.* 1 ) REPRESENTATIVES *Appropriation Bill (No.* 1 ) OUTLINE OF THE MAIN SOCIAL WELFARE AND REPATRIATION BENEFITS In this section the existing and proposed rates of the *main* social service, health, housing and repatriation benefits are set out. Also included is information on proposals to vary other social welfare and repatriation benefits. {: type="A" start="A"} 0. SOCIAL SERVICES Benefit Rate (maximum) Existing Proposed 1972-73 + Increase - Decease Age and Invalid Pensions and Allowances and Sheltered Employment Allowances - Single person Married couple (both eligible but living apart for an indefinite period through ill health) - each Married couple (both eligible and living together)- each Married couple- husband eligibleHusbands pension Payment for wife Married couple - wife eligible Each dependent child (including a student child under 21 years) Guardians allowances - Where there is a child under 6 years or an invalid child requiring full-time ca*e Other cases Supplementary assistance - for certain pensioners and beneficiaries who pay rent(A) Widows Pensions and Allowances - Cass A - Widows with dependent children Mothers allowancesWhere there is a child under 6 years or an invalid child requiring full-time care Other cases Each dependent child (including a student child under 21 years) Class B- Widows aged 50 years or more without dependent children Class C - Widows under 50 years of age in necessitous circumstances and without dependent children Supplementary assistance- for certain pensioners who pay rent Long-term Sickness Benefits - Adult or married minor Spouse Each child under 16 years Person 16 and under 21 years Supplementary allowance - for certain beneficiaries who pay rent Unemployment and Short-term Sickness Benefits - Adult or married minor Spouse . . . . . . . Esch child under 16 years .. .. .. Person 16 and under 18 years P -«on '8 and under 21 years .. Marcrnit> Allowances - No other children 1 or i other children . . . . 3 or mo'e other children Multiple Births - Additional payment for each additional child Child EndowmentFirs* child under 16 years Second child under 16 years Third child under 16 years .. .. Other children under 16 years . . . . . . , . Each student child 16 years and under 21 years Personal Care Subsidy a week 18.25 18.25 16.00 18.25 8.00 18.25 4.50 6.00 4.00 2.00 18.25 6.00 4.00 4.50 16.00 16.00 2.00 18.25 8.00 4.50 12.00 2.00 17.00 8.00 4.50 7.50 11.00 30.00 32.00 35.00 10.00 lump sum 0.50 1.00 2.00 <<0 1.50 5.00 a week 20.00 20.00 17.25 17.25(a) 17.25(a) 20.00 4.50 6.00 4.00 4.00 20.00 6.00 4.00 4.50 17.25 17.25 4.00 20.00 8.00 4.50 13.00 4.00 17.00 8.00 4.50 7.50 11.00 30.00 32.00 35.00 10.00 lump sum 0.50 1.00 2.00 {: type="a" start="e"} 0. t.50 10. 00 a week + 1.75 + 1.75 + 1.25 -1.00 +9.25 + 1.75 +2.00 + 1.75 + 1.25 + 1.25 +2.00 + 1.75 +i!oo +2.00 +5.00 {: type="a" start="a"} 0. As announced in the Budget Speech, it is proposed to extend eligibility for pension, at the married rate, to the wives of all age and invalid pensioners and to pay the husband in such cases pension at the married rate. Payment, at present is restricted to a non-pensioner wife if the pensioner is permanently incapacitated for work, or is blind, or has a child. {: type="1" start="6"} 0. As announced in the Budget Speech, it is proposed to extend eligibility for supplementary assistance to married couples who pay rent. 1. Child endowment for the fourth child under 16 ears in a family is $2.25 a week, for the fifth, $2.50 a week nd soon. {: type="A" start="B"} 0. HEALTH SERVICES Rate (maximum) {: type="a" start="a"} 0. Health insurance benefits equal to standard fund and Commonwealth benefits are provided free to certain persons. This entitlement applies to family groups of at least two units where the family income is $51.50 a week or less, to unemployment and sickness beneficiaries and to migrants for a period of two months after arrival in Australia. Family groups with incomes between $51 .50 a week and $54.50 a week are entitled to the same benefits on payment of contributions for health insurance at one-third the usual rates; family groups with incomes between $54.50 a week and $57.50 a week are entitled to the benefits on payment of contributions at two-thirds the usual rates. Where the head of the family is of pensionable age, eligibility is assessed on a means test basis similar to that applying to pension eligibility. (ft) Legislation is to be introduced to allow registered hospital insurance organisations to pay a daily fund nursing home benefit to insured patients. The proposed fund benefit may vary from State to State. The legislation will also provide for the Commonwealth to pay an amount equivalent to the relevant fund benefit in the State concerned for nursing home patients entitled to benefits under the Pensioner Medical Service. The present Commonwealth nursing home benefits will continue to be payable in both of these cases. 1. Legislation is to be introduced to provide for the payment of a Commonwealth benefit of $2.00 a day to persons who arrange for the provision of nursing care for elderly relatives at home. Certain criteria will determine eligibility for the benefit. 2. Except for a flat charge per prescription which is payable by patients, the Commonwealth meets the cost of a wide range of drugs supplied on a doctor's prescription to any person in the community. The patient contribution is 50 cents per prescription for those persons eligible to receive assistance under the Subsidised Health Benefits Plan *(see (a)* above) and $1.00 per prescription for other persons except that no charge is payable by persons enrolled in the Pensioner Medical Service and their dependants. 3. The Commonwealth 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. (/) The Commonwealth provides benefits for medical treatment given to contributors to registered medical insurance organisations and the dependants of those contributors. 4. The Commonwealth meets the cost of general practitioner medical services for persons enrolled in the Pensioner Medical Service and their dependants. {: type="A" start="C"} 0. HOUSING BENEFITS As announced in the Budget Speech it is proposed to improve benefits available under the Homes Savings Grant Act. The maximum grant will be increased from $500 to $750 and the maximum value of an eligible home will be increased from $17,500 to $22,500. {: type="A" start="D"} 0. REPATRIATION BENEFITS {: type="A" start="I"} 0. PAYABLE WITHOUT MEANS TEST War Pensions - Member - Special rare .. Intermediate rate .. General rate . , Wife........ Each child(a)........ Special Compensation Allowances - Certain general rate pensioners with 75 per cent to 100 per cent assessed incapacity Allowances payable under the Fifth Schedule to the Repatriation Act for certain amputations and/or loss of visionItems 1 to 6 .. .. . . .. Items 7 to 15 .. .. ,. Sustenance AllowanceHigher rate Lower rate ,. ,. War WidowsPension «, 9m Domestic allowance . . . War Orphans PensionsFather dead - Each child.. .. Both pa rents. dead - Each child .. .. . Attendants Allowances - Higher rate .. .. .. .. .. Lower rate Education and Training Allowances (payable under Soldiers Children Education Scheme) - General, agricultural and industrial education . . Professional education^) {: type="1" start="2"} 0. PAYABLE SUBJECT TO MEANS TEST- MAXIMUM RATES Service Pensions(c) - Member - Single .. Married Addition for each child Pension for wife (if not a memberX'O First child (if no addition to members pension paid) Each other child (up to fourth child) Guardians AllowancesWhere there fs a child under 6 yean or an invalid child requiring rail-time care Other cases .. Supplementary Assistance- for certain pensioners who pay ratu?) {: type="a" start="a"} 0. As announced In the Budget Speech, it is proposed to pay war pensions to student children 16 to 20 years in those eases where the children are not In receipt of education living allowances. {: type="1" start="6"} 0. Allowances for professional education are the same as those paid under the Commonwealth University Scholarship Scheme. 1. Service pensions are broadly the equivalent of age and invalid pensions. df) As announced in the Budget Speech, it is proposed to extend eligibility for pension, at the married rate, to tha wives of all Service pensioners and to pay the husband is web eases pension at the married rate. P O) As announced in the Budget Speech, it to proposed to extend eligibility for supplementary assistance to married couples who pay rent. {: .page-start } page 139 {:#debate-88} ### APPROPRIATION BILL (No. 2) 1972-73 Message from the Governor-General recommending appropriation for proposed expenditure announced. Bill presented by **Mr Snedden,** and read a first time. {:#subdebate-88-0} #### Second Reading {: #subdebate-88-0-s0 .speaker-DQF} ##### Mr SNEDDEN:
Treasurer · Bruce · LP -- I move: >That the Bill be now read a second time. This Bill contains details of proposed appropriations of the Consolidated Revenue Fund in 1972-73 totalling $861,386,000 for expenditure on the construction of public works and buildings, the acquisition of sites and buildings, advances and loans, items of plant and equipment which are clearly definable as capital expenditure, grants to the States under section 96 of the Constitution and new policies not authorised by special legislation. Included in the above total is an amount of $30m as an Advance to the Treasurer for the purposes set out in the Bill. The proposed expenditures in this Bill were dealt with as appropriate in my Budget Speech. I commend the Bill to honourable members. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 139 {:#debate-89} ### BUDGET 1972-73 {: #debate-89-s0 .speaker-DQF} ##### Mr SNEDDEN:
Treasurer · Bruce · LP -- I present for the information of honourable members the following papers in connection with the Budget for 1972-73: Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30 June 1973. Commonwealth Payments to or for the States 1972-73. National Income and Expenditure 1971-72. Government Securities on Issue at 30 June 1972. Commonwealth Income Tax Statistics foi income year 1969-70. Civil Works Programme 1972-73 circulated by the Minister for Works. I move: >That the papers be printed. {: #debate-89-s1 .speaker-6U4} ##### Mr WHITLAM:
Leader of the Opposition · Werriwa -- I support the motion. The papers we are ordering to be printed are the last will and testament of the Treasurer **(Mr Snedden).** They deserve to be printed as the testimony of liberalism at its last gasp after 23 years. These papers record the results of monumental failures and in particular the results of the monumental blunder of last year's Budget. This is what these papers reveal. The same Treasurer who has produced the worst unemployment since 1962 and who produced the Budget strategy deliberately designed to create that unemployment asks us now in these papers to accept that his Budget strategy this year is the best that can be devised for this nation. Will it get the 112,000 acknowledged unemployed men and women promptly back to work? It will not. {: #debate-89-s2 .speaker-10000} ##### Mr SPEAKER: -- Order! The motion is that these papers be printed. I do not think this gives any member, including the Leader of the Opposition, the right to cover matters outside the scope of the motion or to talk about the economy or what happened last year. The motion is quite clear. It is that the papers be printed. I think the Leader of the Opposition should confine himself to the terms of the motion. {: .speaker-6U4} ##### Mr WHITLAM: -- I shall, **Sir. I** believe you will appreciate that I am talking in every instance about these papers and their contents. In lost production alone the Treasurer cost us, as the papers reveal, $800m. It can be traced in the various tables on revenue and taxation in these papers. But, of course, the figures in the papers say nothing about the human cost, the loss of morale, dignity and security which unemployment creates- {: .speaker-3V4} ##### Mr Chipp: -- **Mr Speaker,** I raise a point of order. 1 ask for a ruling. The motion before the Chair is that the papers tabled by the Treasurer be printed. The Leader of the Opposition, after acceding to your ruling, is proceeding to debate the contents of the papers and to canvass the matters therein. May I have your ruling, **Mr Speaker,** as to whether he is in order in doing that? {: .speaker-10000} ##### Mr SPEAKER: -I must say that on a motion that papers be printed it is most unusual to have a debate covering the whole range of national income, Commonwealth income tax statistics and the cost to the economy. The Leader of the House has asked me for a ruling on this matter. I will say that the Leader of the Opposition will be out of order if he continues in this vein. The motion is that these papers be printed and this does not entitle any person in this chamber to debate the subject matter of these papers. Other opportunities are given to debate those matters. I think the Leader of the Opposition knows that it is not the practice of the House to debate those matters at this time. {: .speaker-6U4} ##### Mr WHITLAM: -- I believe, **Sir, you** will observe that I will carefully keep within the Standing Orders however novel the application of them may be to members of the Government parties. {: .speaker-10000} ##### Mr SPEAKER: -The Leader of the Opposition will not canvass my ruling. The motion before the House at this time is that the papers be printed. I will not allow any honourable member to debate the contents of these papers, as the Leader of the Oppoosition is now attempting to do. {: .speaker-6U4} ##### Mr WHITLAM: -- The very concessions and benefits provided in these papers tell part of the story of the tragedy of the last year. {: .speaker-10000} ##### Mr SPEAKER: -Order! If the Leader of the Opposition continues in this vein, I will have to ask him to resume his seat. {: .speaker-JO8} ##### Mr Barnard: -- **Mr Speaker-** {: .speaker-10000} ##### Mr SPEAKER: -Order! I am speaking to the Leader of the Opposition at the moment. The Deputy Leader of the Opposition will resume his seat. {: .speaker-JO8} ##### Mr Barnard: -- I wish to raise a point of order. {: .speaker-10000} ##### Mr SPEAKER: -The honourable member may do so in a moment. The motion that the papers be printed does not allow a full debate on national income, government securities, Commonwealth payments or Commonwealth income tax statistics. This has been a long standing custom and practice of this House and I intend to uphold it. {: .speaker-JO8} ##### Mr Barnard: -- I rise to order. I do not want to canvass your ruling, **Mr Speaker,** but there is precedent in this House for debate on a motion that a paper be printed. You have indicated to the House that this is an unusual procedure, that it has not been adopted before; but that does not convince me that it is not correct. I would like you to indicate to the House the Standing Order under which you are preventing the Leader of the Opposition from making the points that he proposes to make in line with the motion that has been moved by the Treasurer. The House is entitled to hear under which standing order you make your ruling. {: .speaker-10000} ##### Mr SPEAKER: -- Now that the honourable member has asked me for the relevant standing order I shall read it to him. It is standing order 322. I will read it fully for the benefit of the House: >On any paper being presented to the House as provided in this chapter a Minister or an Assistant Minister may move without notice either or both of the following motions - 1. That the paper be printed; 2. That the House take note of the paper: Provided that if the motions are not moved by a Minister or an Assistant Minister at the time of the presentation of the paper, they may be moved, on notice, on a subsequent day. {: .speaker-JO8} ##### Mr Barnard: -- Speaking to the point of order I have raised, it is quite clear now that you have been assisted in interpreting the Standing Orders in the way that I have interpreted them in this House in the past. The motion that the House take note of a paper has been moved by the Leader of the Opposition and by Ministers in this House over the years. According to your interpretation there has to be a motion either that the paper be printed or that the House take note of the paper. Every time that a Minister moves in this House that the House take note of the paper every honourable member in this House is enabled to debate that motion. I do not want to canvass your ruling but with due deference to you I make the point that in view of your own interpretation of this standing order the Leader of the Opposition is in order. I believe that he was quite correct in giving his interpretation of the papers in the way he was giving it. {: .speaker-10000} ##### Mr SPEAKER: -I repeat for the benefit of the House that under standing order 322 the 2 alternatives are a motion that the paper be printed or that the House take note of the paper. {: .speaker-JO8} ##### Mr Barnard: -- I shall move that the House take note of the paper. {: .speaker-10000} ##### Mr SPEAKER: -Order! The Deputy Leader of the Opposition may not do that. There is a motion already before the Chair. {: .speaker-2V4} ##### Mr CLYDE CAMERON:
HINDMARSH, SOUTH AUSTRALIA · ALP -- **Mr Speaker-** {: .speaker-10000} ##### Mr SPEAKER: -Order! The honourable member cannot speak until I have finished. The motion that the House take note of the paper is one alternative. The question before the House, that the paper be printed, is another alternative. The Minister at the table has moved that the paper be printed, not that the House take note of the paper. If the Minister had moved that the House take note of the paper a debate would have been in order, as the Deputy Leader of the Opposition has suggested. But the Minister has moved that the paper be printed and, therefore, I cannot allow a full debate. {: .speaker-2V4} ##### Mr CLYDE CAMERON:
HINDMARSH, SOUTH AUSTRALIA · ALP -- I oppose the motion for the reason that all or most of it, or the most relevant part of it, has already been published by **Mr Alan** Reid. {: .speaker-10000} ##### Mr SPEAKER: -- I appreciate the honourable member's political nous but he is out of order. {: .speaker-KWR} ##### Mr Turner: -- I rise to order to make a simple observation. I have been in this Parliament and in a State Parliament- Opposition members - For too long. {: .speaker-KWR} ##### Mr Turner: -- For much too long - for 35 years - to allow this procedure to pass without comment. In those 35 years - yes, indeed, too long - the procedure that has always been followed has been that a Budget Speech has been made and the Leader of the Opposition has asked for the adjournment of the debate until a week later. He may the next day or that night have issued some preliminary statement to the Press but I have never known in 35 years the kind of procedure that the Leader of the Opposition is attempting- {: .speaker-10000} ##### Mr SPEAKER: -Order! The honourable member is proceeding to debate the matter. {: .speaker-KWR} ##### Mr Turner: -- I am speaking to the point of order. {: .speaker-10000} ##### Mr SPEAKER: -The honourable member for Bradfield will state his point of order. He is not entitled to debate the whole ambit of the papers. {: .speaker-KWR} ##### Mr Turner: -- I am introducing the submission I wish to make in support of my point of order. My recollection is that 2 or 3 years ago- I have forgotten just how long ago it was - certain new procedures were introduced in this House. Now we have Appropriation Bills whereas we used to deal with these matters in Committee. {: .speaker-10000} ##### Mr SPEAKER: {: .speaker-JO8} ##### Mr Barnard: -- I rise to order. You have ruled that the Leader of the Opposition is out of order in debating the motion that the paper be printed. Quite clearly the honourable member for Bradfield is endeavouring to make a speech on the subject. If he is allowed to make a speech that will be the proper course for other members of this House. He should make his point of order and then let us reply to it. {: .speaker-10000} ##### Mr SPEAKER: -I suggest to the honourable member for Bradfield that he make his point of order and not debate the question. {: .speaker-KWR} ##### Mr Turner: -- Very well. Let me put it as simply as I possibly can. I do not believe the new procedures were intended to alter the time honoured procedures of the past and I do not believe the present Standing Orders seek to achieve that purpose. {: .speaker-AV4} ##### Mr Hurford: -- That is not a point of order and you know it. {: .speaker-KWR} ##### Mr Turner: -- 1 have been here a lot longer than you have. You know very little about it. {: .speaker-10000} ##### Mr SPEAKER: -Order! The honourable member for Bradfield and other members on my right will cease interjecting. The Leader of the Opposition has the floor. {: .speaker-6U4} ##### Mr WHITLAM: -- **Mr Speaker,** you have based your ruling on standing order 322, which was amended as recently as 13th April this year. I was on the Standing Orders Committee which suggested this amendment which was adopted by the House. I do not believe that any honourable members appreciated that under this standing order which authorises 2 motions, firstly that the paper be printed or secondly that the House take note of the paper, that debate was precluded on the former but permitted on the latter. We assumed that debate would be permitted on either of those motions included in the same standing order. May I say with respect, **Sir, that** you seem to be giving the ruling that this is one of those motions which are listed in standing order 86 on which there can be no debate. You have precluded me from giving arguments in favour of printing the papers; you have precluded my colleague, the honourable member for Hindmarsh **(Mr Clyde Cameron),** from giving arguments why they should not be printed. I suggest with respect that it is equally open to debate the motion that the paper be printed under standing order 322 as it is to debate the motion that the House take note of the paper under standing order 322. {: .speaker-10000} ##### Mr SPEAKER: -- The honourable member for Hindmarsh did not attempt to debate the motion, so I did not prevent him. Secondly, 1 have given a ruling on this matter and I think the Leader of the Opposition knows that what I have outlined has been the custom and the practice of the House for many years. The standing order was framed in that context. I inform the House that I was Chairman of the Committee that considered the standing order as well as being in attendance at its sitting, and that is the interpretation that I put on the standing order. {: .speaker-5J4} ##### Mr Scholes: -- I take the point of order that on other occasions debate has taken place in this House on motions that papers be printed. It is a regular practice to debate reports of the Publications Committee and it was previously the practice to debate reports of the Printing Committee on motions to print the papers. I do not think there is any difference between that situation and the present circumstances. As there is no prohibition in the Standing Orders, I ask you, **Mr Speaker,** under what standing order you say that speaking on his motion to print the papers is out of order when on other occasions it is allowed. {: .speaker-10000} ##### Mr SPEAKER: -I want to make it quite clear that this Standing Order was amended in April 1972, but standing order 322 was also amended in 1963. I draw the attention of the House to the publication Short Description of Business and Procedures', which states on page 15 in relation to motions on presentation: >The passing of the motion That the paper be printed' enables the House to print it as a parliamentary paper. The motion That the House takes notice of the paper' enables a debate on the subject matter of the paper to take place. {: .speaker-5J4} ##### Mr Scholes: -- I take the point of order that it must be open to the House to discuss whether or not it is advisable that a paper be printed as a parliamentary paper; otherwise the resolution itself is a farce. {: .speaker-10000} ##### Mr SPEAKER: -I think I have been as explicit as I can be. {: #debate-89-s3 .speaker-6U4} ##### Mr WHITLAM:
WERRIWA, NEW SOUTH WALES · ALP -- I will not continue. With respect, **Mr Speaker,** I disagree with you but I do not propose to test your ruling. The honourable member for Bradfield, in the first and most lucid of his interventions, said that the usual practice was for the Leader of the Opposition to move the adjournment of the Budget debate. The Leader of the Opposition did that, but he believed that he was entitled under a Standing Order amended as recently as April this year to speak on another motion. But, **Sir, you** are not of that opinion. {: .speaker-10000} ##### Mr SPEAKER: -I think you will find I am right. {: .speaker-6U4} ##### Mr WHITLAM: -- Without prejudice I will accept your opinion on this occasion. {: .speaker-10000} ##### Mr SPEAKER: -- Thank you. {:#subdebate-89-0} #### Suspension of Standing Orders Motion (by **Mr Scholes)** put: >That so much of the Standing Orders be suspended as would prevent the Leader of the Opposition continuing his remarks. The House divided. (Mr Speaker - Hon. Sir William Aston) Ayes . . . . . . 52 AYES: 0 NOES: 60 Majority AYES NOES Question so resolved in the negative. Original question resolved in the affirmative. {: .page-start } page 143 {:#debate-90} ### INCOME TAX BILL 1972 Bill presented by **Mr Snedden,** and read a first time. {:#subdebate-90-0} #### Second Reading {: #subdebate-90-0-s0 .speaker-DQF} ##### Mr SNEDDEN:
Treasurer · Bruce · LP -- I move: >That the Bill be now read a second time. The purpose of this Bill is to declare the rates of income tax for the current financial year 1972-73. The Bill will give effect to changes mentioned in my Budget Speech. The Bill's most significant feature is the new personal tax scale which will reduce tax payable by individuals by an average of 10 per cent. The new scale will apply free of any additional levy. It is estimated that, as compared with tax that would be payable if the existing scale and *2i* per cent levy were continued, the new scale will reduce income tax payments in 1972-73 by $380m and by $480m in a full year. As I said in my Budget Speech, the interaction of money incomes rising with inflation and the progressive rate scale has led to income taxation becoming too heavy a burden. The low income earner is contributing a proportion of his income in taxation far higher than 10 or IS years ago; the man on average weekly earnings or a little more is finding income taxation looming increasingly larger in his calculations; and the managerial or professional man is facing marginal rates of taxation which on any reasonable criteria are very high indeed. The new scale is designed to give the greatest percentage reductions in taxation at the lower end of the income scale. The tax payable on a taxable income of $2,000 will be reduced by 14.2 per cent. For a taxable income of $4,000 the reduction will be 12.4 per cent. At $10,000 the reduction will be 8 per cent and at $20,000, 6.6 per cent. If we are to make the large percentage reductions which we wish to see at the lower and medium income levels, the rate of progression of marginal tax rates would become very steep indeed if the point at which the maximum marginal rate becomes effective were to remain unchanged. That point, which was $32,000 under the scale existing since 1954-55, was altered in the course of the changes made in 1970-71 and is now $20,000. We propose to set a new point of $40,000 at which the new maximum rate of 66 2/3 per cent - that is, the present maximum rate but without the *2i* per cent levy - will apply. These reductions in tax payable also will be fully reflected in tax payable by primary producers subject to the averaging provisions of the law and by taxpayers whose rate of tax is based on a notional income. The minimum taxable income for individuals will be raised by the Bill from $417 to $1,041. This new minimum will also apply in assessments of trustees on income of trust estates to which a beneficiary is presently entitled but is under a legal disability. As a consequence of the increase in the minimum taxable income in these cases changes are proposed in the 'shading-in' arrangements which apply to cushion the impact of moving from complete exemption into tax at normal rates. Tax at normal rates will commence to apply on taxable incomes above $1,120 instead of $428 as at present. For taxable incomes between $1,041 and $1,120 the tax payable will be limited to two-thirds of the amount by which the taxable income exceeds $1,040. The change in minimum taxable income, which will free some 600,000 taxpayers from tax, is estimated to reduce personal income tax payments by $14m in 1972-73 and by $18m in a full year. The present exemptions granted under the age allowance will remain for eligible people. Because of the reduction in the general rates of tax, however, tax as limited by the age allowance will now 'shade-in' to the general rate scale at $2,202 or, where the married couple provisions apply. $3,871. Schedules of tax instalment deductions to be made by employers from salaries or wages paid to employees are being revised in the light of the proposed reduction in tax rates and the increased minimum taxable income. The new schedules will have effect as from 1st September. Provisional tax payable in respect of the income year ending 30th June 1973 also will be adjusted to take account of the changes proposed by the Bill. Apart from the features I have mentioned, the provisions of the Bill have the same practical effect as corresponding legislation for the 1971-72 year. Technical aspects of the Bill are explained in the explanatory memorandum which is being circulated. I commend the Bill to the House. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 144 {:#debate-91} ### INCOME TAX ASSESSMENT BILL (No. 4) 1972 (No. 2) Bill presented by **Mr Snedden,** and read a first time. {:#subdebate-91-0} #### Second Reading {: #subdebate-91-0-s0 .speaker-DQF} ##### Mr SNEDDEN:
Treasurer · Bruce · LP -- 1 move: >That the Bill be now read a second time. This Bill has 2 main provisions. One will amend the Income Tax Assessment Act to increase concessional deductions for the maintenance of dependants. The other will provide a deduction for expenses of a taxpayer in obtaining educational qualifications connected with income-producing activities in cases where the expenses are not deductible under the present law. Both measures were foreshadowed in my Budget Speech. The amendments to the dependants allowances will mean that the maximum deductions available under the law for the maintenance of a spouse, a parent, a parent-in-law, a housekeeper and a daughter-housekeeper will each be advanced from $312 to $364. Similarly, deductions available for maintenance of a student, an invalid relative and for one child under 16 years of age will each move up from $208 to $260. For other children under 16 the deduction will be increased from $156 to $208. I have explained in my Budget Speech that these increases in dependants allowances, together with the reductions in income tax proposed by the Bill I have already introduced, are directed to easing the tax burdens of the family man and the single income family in particular. PAYE deductions from salaries and wages paid from 1st September 1972 will take both changes into account. The measure dealing with what have become known as self-education expenses is an important one. Many people spend money on educational courses with a view to obtaining qualifications to .aid them in earning income. This expenditure may not be deductible for income tax purposes because, according to long-standing principles on which the general deduction provisions of the income tax law are based, it is either not incurred in the course of producing income or is private expenditure. The Government has decided, however, that a concession should be available for people who set themselves the task of gaining educational qualifications connected with their careers. We therefore propose a special concessional deduction for expenditure incurred by a taxpayer on fees, books and equipment associated with a course of education he undertakes for the purpose of acquiring qualifications related to his employment or career. The new concession will not be subject to any age qualification. It will be available whether a course of education is attended on a full-time or part-time basis or is carried on by correspondence. As is the case with the concession now provided to a parent for the education of children, the maximum deduction under the new concession in any income year will be S400. Also in line with the deduction granted to a parent, a deduction will not be allowable for expenses recouped under the Commonwealth scheme for secondary and technical scholarships. The new concession will complement the present allowance for education expenses and will be limited to the difference between the amount of $400 and any amount allowable to a parent or other person for the education expenses of the taxpayer. It is proposed that both the deduction for self-education expenses and the increased dependants allowances will be allowable in assessments based on income derived in the 1972-73 income year and subsequent years. The provisions of the Bill referring to provisional tax are consequential on the reductions in the general rates of tax and the increase in the minimum taxable income for the 1972-73 financial year proposed by the Income Tax Bill 1972. These provisions will have the effect that the reductions in personal income tax rates and the increased minimum taxable income for individuals will be fully reflected in amounts of provisional tax in respect of the 1972-73 income year. Technical aspects of the Bill are explained in a memorandum circulated to honourable members. I commend the Bill to the House. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 145 {:#debate-92} ### SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) BILL 1972 (No. 2) Bill presented by **Mr Snedden,** and read a first time. {:#subdebate-92-0} #### Second Reading {: #subdebate-92-0-s0 .speaker-DQF} ##### Mr SNEDDEN:
Treasurer · Bruce · LP -- 1 move: >That the Bill be now read a second time. The sole purpose of this Bill is to give effect to the proposal announced in the Budget Speech to exempt from sales tax imported works of art. At present works of art produced in Australia are exempt from sales tax.. Exemptions for imported works fall into 2 classes. Those imported for public galleries or museums or otherwise for continuous free public exhibition are exempt. So also are works by Australian artists abroad or, within the terms of the New Zealand/ Australia Free Trade Agreement, by New Zealand artists. Importations by or for private collectors or commercial organisations of works by other than Australian or New Zealand artists are subject to sales tax at 15 per cent. The exemption in favour of works by Australian artists was introduced in the early days of sales tax as a measure of assistance to those artists. The Government considers that the development of Australian art is such that original purpose is no longer relevant. Moreover, the tax on imported works acts against the interests of public galleries which rely to a large extent on benefactions from private collectors. Works of art are largely exempt from Customs duty and the Government proposes that the sales tax discrimination against imported works should also be removed. The proposed exemption will complement the Customs provisions and will accordingly apply to paintings, drawings, sculptures, engravings and so on that are exempt from Customs duty. Imported paintings, drawings and pastels valued at $50 or less are subject to Customs duty and will remain subject to sales tax. It is customary for sales tax changes to be effective from the day after their introduction into Parliament and it is proposed that the exemption should come into operation tomorrow, 16th August 1972. A memorandum containing a more detailed explanation of the Bill is being circulated to honourable members. I commend the Bill to the House. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 145 {:#debate-93} ### EXCISE TARIFF AND CUSTOMS TARIFF PROPOSALS {: #debate-93-s0 .speaker-3V4} ##### Mr CHIPP:
Minister for Customs and Excise · Hotham · LP -- I move: Customs Tariff Proposals No. 13 (1972) and Excise Tariff Propoals No. 2 (1972), which I have just tabled, introduce tariff changes foreshadowed by my colleague, the honourable the Treasurer **(Mr Snedden),** in his Budget Speech earlier this evening. These changes operate from tomorrow. The Propoals will permit the entry, free of excise of Customs duty, of tobacco, cigarettes, cigars ond snuff, for use in approved medical or other scientific research programmes. The Excise Tariff Proposals also introduce changes in respect of duties on gasoline and other shale spirit, and mineral turpentine, produced from shale mined in Australia. Formerly these products were entered free of duty. However, the need for the concession no longer exists and the opportunity is being taken to simplify the Excise Tariff. A summary of these alterations is being circulated to honourable members. I also tabled Customs Tariff Proposals Nos 9 to 12 (1972). These Proposals formally place before Parliament the tariff changes made while the Parliament was in recess. The were published by notice in Commonwealth Gazettes of 5th and 30th June and 3rd and 28th July 1972. The changes arise from the Government's decisions following receipt of the following Tariff Board reports: AC generators exceeding 120 kVA; rotary converters exceeding 50 kW; hand tools; interchangeable tools, etc.; shipbuilding; and shot angular grit and wire pellets of iron or steel. Other changes extend the list of commodities to which the New Zeland-Australia Free Trade Agreement applies. Honourable members were supplied with details of the changes in tariff protection by my colleague the Minister for Trade and Industry **(Mr Anthony)** at the times the Gazette notices were made. Proposals No. 10 (1972) provides for the conversion of all imperial measurements in the Customs Tariff to their metric equivalents in accordance with the Government's decision to adopt the metric system. Rates of duty have been adjusted accordingly. The Proposals also include amendments to align the Australian Customs Tariff with recent amendments to the Brussels Nomenclature. Any changes in duty rates are minimal. I commend the Proposals. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 146 {:#debate-94} ### TARIFF BOARD Reports on Items {: #debate-94-s0 .speaker-3V4} ##### Mr CHIPP:
Minister for Customs and Excise · Hotham · LP -- I present the following reports by the Tariff Board: >A.C. Generators Exceeding 120 kVA; Rotary > >Converters Exceeding SO kW; Hand Tools; Interchangeable Tools, etc.; Hardened Casein, etc. (New Zealand-Australia {:#subdebate-94-0} #### Free Trade Agreement); Shipbuilding; {:#subdebate-94-1} #### Shot, Angular Grit and Wire Pellets of Iron or Steel; {:#subdebate-94-2} #### Acetone (Dumping and Subsidies Act); Acoustic Boards (Dumping and Subsidies Act); and ID.C. Mill Type Motors, The last 3 reports do not require any legislative action. Ordered that the reports be printed. {: .page-start } page 146 {:#debate-95} ### LIQUEFIED GAS (ROAD VEHICLE USE) TAX BILL 1972 Bill presented by **Mr Chipp,** and read a first time. {:#subdebate-95-0} #### Second Reading {: #subdebate-95-0-s0 .speaker-3V4} ##### Mr CHIPP:
.Minister for Customs and Excise · Hotham · LP -- I move: >That the Bill be now read a second time. The Bill now before the House introduces a tax of 3c per litre on liquefied gas which is used for propelling road vehicles. My colleague the Treasurer **(Mr Snedden)** foreshadowed the introduction of this tax in his Budget Speech earlier this evening. The Bill relates only to liquefied gas used in propelling road vehicles and does not in any way affect the bulk of liquefied gas which is used for industrial and domestic heating and cooking and for many other purposes. It is proposed that the tax will come into effect on and from a date to be proclaimed. A summary of the clauses in the Bill is being circulated. I commend the Bill. Debate (on motion by **Mr Charles** Jones) adjourned. {: .page-start } page 146 {:#debate-96} ### LIQUEFIED GAS (ROAD Bill presented by **Mr Chipp,** and read a first time. {:#subdebate-96-0} #### Second Reading {: #subdebate-96-0-s0 .speaker-3V4} ##### Mr CHIPP:
Minister for Customs and Excise · Hotham · LP -- I move: That the Bill be now read a second time. The Bill now before the House is complementary to the Liquefied Gas (Road Vehicle Use) Tax Bill 1972 which has just been introduced. The Liquefied Gas (Road Vehicle Use) Tax Collection Bill 1972 provides the administrative machinery which will become necessary for the collection of the tax on liquefied gas used in propelling road vehicles when the tax comes into effect. A summary of the clauses in the Bill is being circulated. I commend the Bill. Debate (on motion by **Mr Charles** Jones) adjourned. House adjourned at 10 .3 p.m. ANSWERS TO QUESTIONS UPON NOTICE The following answers to questions upon notice were circulated: {:#subdebate-96-1} #### Foreign Investment {: type="1" start="1"} 0. OVERSEAS BORROWING The most recent overseas borrowing undertaken by the Commonwealth on its own account was made on the West German market in January 197Z The borrowing, of an amount of DM 100m (approximately $A25.4m), was for a term of 15 years with an interest rate of 7 per cent payable annually. The interest rate offered on long-term Commonwealth securities issued in local November 1971 cash loan was 6.7 per cent; the rate was reduced to 6 per cent in the subsequent February loan. There are important differences, in terms of their purposes and economic implications, between borrowings of foreign currency, overseas and borrowings in the local market, and it does not follow that an overseas borrowing should not be undertaken because an equivalent amount in local currency might be obtainable from additional local borrowings (which could have implications foi local interest rates) at a rate of interest lower than the rate prevailing at the time in the overseas market. The Government has considered it important to maintain access to large and important capital markets overseas. However, borrowings undertaken overseas have in recent years represented only a very small proportion of total Commonwealth borrowings. In the current financial year there will be a net reduction in the Commonwealth's overseas indebtedness. {: type="1" start="2"} 0. CAPITAL INFLOW Following the announcement of the establishment of a new pattern of exchange rates by members of the Group of Ten major industrial countries, the Australian Government decided on 22nd December 1971 that the gold parity of the Australian dollar would remain unchanged. However, taking advantage of the widening of the permitted margins about parity (+ or - *2i* per cent), it was decided to establish the market rate for the Australian dollar on the United States dollar at approximately 2 per cent below the par rate. The fixing of this market rate has meant that the Australian: dollar in relation to the parities of our major trading partners as a whole has experienced an overall effective depreciation of approximately 1.5 per cent. In relation to the latest market rates, the effective depreciation is approximately 2 per cent. It is impossible to make any valid estimates of the effects of the Government's decision on the rate of capital inflow. {: type="1" start="3"} 0. OVERSEAS INVESTMENT In accordance with the Government's wishes the purpose of the Treasury Economic Paper Overseas Investment in Australia' was not to put forward policy proposals arising from the high rates of capital inflow over the past IS months but to analyse, from the Australian viewpoint, the principal economic issues raised by overseas investment in this country. At the time I tabled the document in the House on 16th May of this year I stated that my colleagues and I would be addressing ourselves to the policy issues which are identified in the Treasury Economic Paper. This is now being done. {: type="1" start="4"} 0. INFLATION AND CAPITAL INFLOW It has been the Government's longstanding policy to restrain the forces of inflation and to maintain a high level of employment. Any consideration of capital inflow will, of course, have full regard to these policy objectives. {:#subdebate-96-2} #### Country Newspapers (Question No. 3960) {: type="1" start="1"} 0. Can he say how many country newspapers {: type="a" start="a"} 0. survive under independent local control and 1. are controlled from capital cities. 1. Can he also say whether Brisbane interests are at present negotiating a takeover of papers in Toowoomba, Maryborough and Mackay, 2. If so, does this move illustrate the end towards increasing city centralised domination of rural centres and their people. 3. Will the Government take active steps to discourage centralisation of power and control of vital mass media. {: type="1" start="4"} 0. The Government has recently announced legislative proposals in relation to restrictive trade practices and monopolisation. Under the proposed legislation the Government will be able to refer selected mergers to a Monopolies Commission for examination and it will have power to prevent mergers that the Commission finds to be against the public interest. {:#subdebate-96-3} #### Crime: Statistics (Question No. 4369) Enderby (Hansard, 2 November 1971, pages 2887-2888) the figures shown for the Northern Territory, in answer to parts 1 and 4 of the Question, indicated the number of persons dealt with by Courts of Summary Jurisdiction and are not necessarily indicative of the number of arrests. Corrected figures are as follows: {: type="1" start="1"} 0. How many persons were arrested in (b) the Northern Territory in each of the last 5 years. {:#subdebate-96-4} #### Answer: {:#subdebate-96-5} #### Year Number 1966- 67 .. .. .. 6,945 1967- 68...... 7,676 1968- 69 .. .. .. 7.730 1969- 70...... 7,201 1970- 71 .. .. .. 10,673 {:#subdebate-96-6} #### Question: {: type="1" start="4"} 0. Of the total number of persons arrested how many were arrested because of a charge of (a) drunkenness (b) offensive behaviour (c) indecent language (d) carnal knowledge (e) resisting a constable in the performance of his duty (0 an offence associated with gambling (g) an offence arising out of the use of a motor vehicle (h) being a vagrant and (i) an offence relating to pornography or obscenity. {: type="a" start="a"} 0. Drunkenness 1. Offensive behaviour . . . . 2. Indecent language 3. Carnal knowledge 4. Resisting constable in performance of duties . . (0 Gambling Offences 5. Offences arising out of use of motor vehicle . . 6. Vagrancy 7. Pornography or obscenity . . {:#subdebate-96-7} #### Offshore Oil Exploration (Question No. 4681) {: type="1" start="1"} 0. What sum has been spent on offshore oil exploration in Tasmanian waters to date? 1. What sum is expected to be spent in each of the next 3 years? 2. Have all leaseholders met expenditure requirements under the terms of their leases? 3. If not, what companies have failed to do so and by what amount? {: type="1" start="1"} 0. Expenditure incurred up to the end of December, 1971 on exploration for petroleum in Tasmania under the Petroleum (Submerged Lands) Act 1967-1968 was $10,267,249. 1. $11,367,525 is required to be expended on offshore petroleum exploration in the remaining life of current permits - five of the current permits will expire in July, 1974, one expires in September, 1974 and the remaining one will expire in April, 1975. 2. and (4) The deficiency or excess in expenditure in a permit in any one y.ear may be carried forward to the next succeeding year so that the expenditure condition will be finally accounted for by the end of the sixth year of the term of the Tasmanian permits. In the case of 3 permits which were surrendered before the expiry of the term granted, the security deposit on each was forfeited because of failure of the permit holders to satisfy the expenditure conditioa {:#subdebate-96-8} #### People's Republic of China (Question No. 4968) On what date in 1971 did representatives of the People's Republic of China indicate to the Government that attempts for dialogue by the Government were not acceptable. I refer the honourable member to the answer I gave on 9th- 10th .December to question No. 4259 asked by **Mr Whitlam.** {:#subdebate-96-9} #### Education: State Grants (Question No. 4970) {: type="1" start="1"} 0. On what dates did he or his predecessor receive: {: type="a" start="a"} 0. the first draft of the financial needs of the State education systems according to the nation-wide survey of educational needs and 1. any subsequent amendments to the requirements set out in the survey. 1. On what subsequent dates did the Commonwealth Government make grants to the State governments specifically for educational purposes. 2. What was the (a) nature and (b) value of these grants. 3. What proportion of the amount required foi educational purposes by the State governments did these grants constitute. {: type="1" start="1"} 0. The first versions of the State Education Ministers' Surveys of Educational Needs were received in my Department in February 1970. On a number of occasions since then I and officers of my Department have been in consultation with State Ministers for Education and with State officials. 1. , (3) and (4) The Commonwealth has taken action at Premiers' Conference and Loan Council meetings subsequent to February 1970 to provide substantially increased financial assistance to the States. Additional financial support from the Commonwealth to the States for capital expenditure on State schools was announced by the Prime Minister in his statements to the House on 9th December 1971 and 11th May 1972. The Government's general attitude towards the results of the 1970 Survey of Educational Needs was, set out in gome detail in my statement to the House on 5 October 1971. {:#subdebate-96-10} #### Influenza Vaccines (Question No. 5003) {: type="1" start="1"} 0. What studies have been undertaken by the National Health and Medical Research Council Into the value of group vaccination with influenza vaccines. 1. It the group vaccination programme considered to be successful. 2. If so, what programme is to be Implemented in 1972 for (a) Government employees, (b) other employees, (c) schoolchildren, (d) nonemployed persons, (e) pensioners and other recipients of social service or repatriation benefits and (f) Aboriginal communities. 3. When will group vaccination programmes commence. 4. How many vaccine doses are estimated to be necessary and will this supply be readily available. 5. At what cost and from what sources will supplies be obtained. {: type="1" start="1"} 0. This matter has been considered by the National Health and Medical Research Council and by its Epidemiology Committee on a number of occasions. 1. In a recommendation made during Its 70th Session in April 1970, Council stated: Whilst influenza vaccination does not afford absolute protection there is evidence to suggest that its use may modify outbreaks of this disease.' Council recommended that the following groups should be given priority for influenza vaccination: {: type="i" start="1"} 0. Persons with rheumatic heart disease and/or congestive cardiac failure, chronic bronchitis, emphysema, chronic asthma, chronic hypostatic pulmonary congestion, chronic interstitial pulmonary fibrosis, or mucoviscidosis. 1. Persons with other serious chronic debilitating diseases. (iti) All other persons aged 65 and over.' The matter was again considered at the 73rd Session of Council and the following additional comments were made: Council considered that there is Inadequate evidence that group vaccination with recent Influenza vaccines has had any significant influence on the incidence of Influenza: nor is there sufficient evidence that vaccination hag conferred significant protection upon the Individual in terms of clinicial disease. For these reasons, the benefits to be derived from organised and officially sponsored mass vaccination programmes against Influenza are doubtful. In view of the fact that persons with preexisting chest disease and related disabilities are exposed to special hazards from influenza; and in view of the fact that there is no alternative and that there is some possibility that vaccination might confer even a small degree of protection, the vaccination of these " specialrisk " groups as a routine procedure each year is probably Justified. Council also considered that there is insufficient evidence to Indicate that mass vaccination with influenza vaccine of employees of Government Departments or large organisations is worthwhile.' {: type="1" start="3"} 0. (a) In view of the above comments by the Council, the Department of Health has not reccommended mass vaccination of Commonwealth employees. This is a matter for decision by individual Departments, all of which have been informed of the comments referred to above. (b), (c), (d), (e) I am unaware of any vaccination programmes against influenza relating to these) specific groups. Influenza vaccine is, however, available to eligible pensioners and their dependants, as a pharmaceutical benefit. {: type="a" start="f"} 0. The Department of Health's policy in relation to Aborigines in the Northern Territory is directed towards vaccination of the 'special-risk' groups as recommended by the National Health and Medical Research Council at its 70th Session. Influenza vaccination programmes are effected in a planned manner through the Department's Northern Territory Aerial Medical Service and Rural Health Section. 1. and (5) A programme of vaccination of. Northern Territory Aborigines against influenza was undertaken during April and May 1972. 1,125 ampoules of vaccine were used, and supplies were adequate to meet the demand. As indicated above, I am not in a position to provide similar information in relation to other specific groups referred to In part (3) of the honourable member's question. 2. Supplies for the abovementioned programme of vaccination of Northern Territory Aboriginals were obtained from the Commonwealth Serum Laboratories, at cost of 49 cents per dose. {:#subdebate-96-11} #### University Enrolments (Question No. 5009) >What was the (a) enrolment quota (b) number of applications for enrolment and (c) number enrolled for each faculty in each Australian (i) university and (ii) university college at the commencement of the 1972 academic year. >Figures for 1972 of the nature sought by the honourable member are not yet available. I shall advise the honourable member as soon as I am in a position to do so. {:#subdebate-96-12} #### University Fees (Question No. 5010) {: type="1" start="1"} 0. What was the amount of course fees payable for the 1972 academic year in respect of each faculty in each university. 1. What was the amount of fees increase over the 1971 level. >The information requested has been supplied by all universities and is shown in the following table. Unless otherwise indicated, course fees are based on subjects normally studied in a full-time course completed in minimum time. All compulsory fees for the course are included, except those payable to student bodies. Courses available in 1972 Increase Course in 1972 fees fees over as 'at those 1972 in 1971 Courses available in 1972 Increase Course in 1972 fees fees over as at those 1972 in 1971 Postgraduate- Bachelor - Letters .. Education(a) Diploma - Agricultural Economies Computer Science Education Educational Administration Rural Accounting Science Agriculture Masters, 2 yean Doctor of Philosophy, 3 years Higher Doctorate . . University of NewcastleUndergraduate Arts/Commerce - Pass Honours . , Applied Science , , Architecture , . Engineering , , Science- Pass Honours Postgraduate - Masters Master Engineering Science Doctor of Philiosophy Macquarie UniversityUndergraduate Arts- Pass i. Honours .. Postgraduate- Diploma - Business Administration . . Electronics Masters, I year Masters, 2 years Master of Business Administration, 3 years Doctor of Philosophy- 2 years 3 years Doctor of Letters or of Serene* University of MelbourneUndergraduate - Agricultural Science Applied Science Architecture .. Arts- Pass . . .. Honours Building . . Commerce- Pass . . .. Honours Dental Science , . Engineering . , Law , . Medicine .. .. Music Science - Pass .. Honours Education , Forestry.. , . Optometry Surveying .. Town and Regional Planning Veterinary Science . . Postgraduate - Masters and Doctor of Philosophy, per annum 357 354 483 371 534 265 1,164 1,552 1,864 2,330 1,864 1,398 1,864 380 436 563 1.352 1,828 1,000 475 260 520 1.500 520 780 60 2,748 2,148 2.325 1,393 1.860 1,860 1.395 1,860 2,685 2.148 1.860 3,426 1.860 1.611 2,148 2,148 1,074 2.148 2,148 1,860 3,733 189 38 138 60 84 12 38 144 192 240 300 240 180 240 43 35 63 190 238 112 II 4 48 188 38 82 7S No Increase Monash University - Undergraduate- Arts ., Econonr'cs .. Education ., Engineering Jurisprudence Law . . Medicine and Surgery Science Postgraduate - Masters, per annum Doctor of Philosophy. per La Trobe University - Undergraduate- Agriculture .. .. AU other coursesPass .. .. Honours . . . Postgraduate- Bachelor of Education . . Diploma in Education . . Master, 2 years Doctor of Philosophy. 3 yean University of Queensland - Undergraduate - Agricultural Science Applied Science Geology Architecture Arts Commerce. . . . Dental Science . . Divinity . . Economics .. Education . . Engineering Law . . Medical Science Medicine and Surgery Music Occupational Therapy Pharmacy Physiotherapy Science Speech Therapy Social Work Surveying Town and Regional Planning Veterinary Science . . Postgraduate- Masters Doctor of Philosophy, 3 yean James Cook UniversityUndergraduate Arts- Pass Honours . . Economics - . . Pass . . Honours . Education Engineering . . Science - Pass . . Honours Postgraduate- Masters, 1 year Doctor of Philosophy, 2 years University of AdelaideUndergraduate Agricultural SciencePass Honours Architecture- Pass, 5 years Honours, 5 years Arts- Pass Honours . . Dentistry . . . . Economics- . . Pass .. Honours . . EngineeringO) . . Law . . 1.440 1,440 960 1.920 1.440 2,400 2,880 1,440 168 114 J 1,872 1,404 1,872 468 468 296 2,396 2.196 2,745 1.467 1,467 2.863 1,467 1,467 1,647 2,266 1,956 453 3,470 1.647 1,647 1,647 1.845 1.647 1.647 1,956 1,860 2,196 3.111 598 1.782 1.476 1968, 1.476 1,968 1.968 1.982 1,476 1,968 492 984 2,020 2.446 2,400 2,544 1.278 1.704 2.700 1.278 1,704 1,920 1,704 No Increase No Increase 452 452 563 303 303 563 303 303 339 452 484 17 678 339 339 339 381 339 339 404 377 552 565 130 37S 297 396 297 396 204 204 133 204 51 (02 232 312 321 339 156 216 333 156 216 252 213 Aboriginal Education (Oration No. 502S) >Can he stale for the (a) Aboriginal and (b) non-Aboriginal population of Australia the proportion which (0 (A) has successfully completed, (B) has unsuccessfully attempted and (C) is undertaking tertiary education, (ii) has completed the full period of secondary schooling to leaving or matriculation standard, (iii) has completed secondary schooling to intermediate, junior or equivalent standard, (iv) has completed secondary education to a lesser standard than in part (iii), (v) is currently undertaking secondary education, (vD has completed primary school education only, (vii) has not completed primary school standard of education but whose education has been terminated and (viii) is currently undertaking primary education. >The Commonwealth Statistician has advised that the Census of Population and Housing is the only statistical collection conducted by him at which Aborigines are identified separately from nonAborigines. Information on the characteristics oi the population enumerated at the 1971 Census is not yet available, and so the Commonwealth Statistician has provided information from the 1966 Census in answer to certain parts of the honourable members question. This information, in the form of a statistical table, is as follows: >POPULATION BY LEVEL OF EDUCATIONAL ATTAINMENT, PERCENTAGE DISTRIBUTION: AUSTRALIAN CENSUS 30 JUNE 1966 > >Because of differences between educational systems in the various States, details for individual education levels for Australia as a whole are not strictly comparable. Figures for the Aboriginal population relate to those persons who described themselves in the 1966 Census as being 50 per cent or more Aboriginal or simply as 'Aboriginal*. Figures for the non-Aboriginal population relate to the remainder of the population. Information is not available from the 1966 Census on those persons who had unsuccessfully attempted tertiary education or those persons who are at the time of the Census were undertaking tertiary education. In addition it was not possible in the above table: {: type="a" start="a"} 0. to separately identify in Group 4 those persons who had completed secondary education to a lesser standard than intermediate or its equivalent from those persons who were at the time of the Census undertaking secondary education; and 1. to separately identify in Group 5 those persons who had completed primary school from those persons who had not completed primary school, but whose education had been terminated, or from those persons who were at the time of the Census undertaking primary education. The honourable member might also find it useful to refer to the answer to a question by **Senator Keeffe** on children of Aboriginal and Torres Strait Islands descent enrolled during the 1971 school year for final year matriculation classes and university courses (Senate Hansard 13th October 1971, p. 1307). {:#subdebate-96-13} #### China (Question No. 5105) >On what occasions and at what cost has the Commonwealth paid for **Mr James** Kibel to visit Hong Kong and China. >I am advised that the Commonwealth has met expenses as follows for **Mr James** Kibel - > >In September 1971, an amount of $56.80, being the cost of one return faro from Melbourne to Canberra. > >In October 1971, an amount of $600.17, being the cost of one fare from Hawaii to Melbourne via Hong Kong and also $131.30, being the hotel account for **Mr Kibel's** stay in Hong Kong. {:#subdebate-96-14} #### Aborigines: Per Capita Expenditure (Question No. 5136) >What was the per capita expenditure on Aborigines for all purposes by both the Commonwealth and the States in each State in each of the last 5 years. >Please see my reply in Question 3491, in Hansard of 25th May. {:#subdebate-96-15} #### China (Question No. 5173) {: type="1" start="1"} 0. Has **Mr Brian** Kibel ever acted officially or otherwise on behalf of the Australian Government as an intermediary to the People's Republic of China. 1. If so, (a) what was the nature of the brief on each occasion and (b) what remuneration or expenses have been paid for these services. {: type="1" start="1"} 0. and (2) The matters dealt with in this question have been the subject of questions and answers in the House and of a major debate and I do not propose to add to what has already been said. For expenses met for **Mr James** Kibel, see answer to Question No. 5105. {:#subdebate-96-16} #### China (Question No. 5174) {: type="1" start="1"} 0. Is it a fact that the overture made by **Mr Brian** Kibel, regarding the proposal that **Mr and Mrs Peacock** should go to China, were made on behalf of the Government of the People's Republic of China. 1. If so, has any alternative proposal been transmitted through **Mr Kibel** or otherwise to tho Chinese Government. 2. Is it a fact that complete rejection of the overtures by **Mr Kibel** could be regarded by the Chinese Government as a rebuff to its initiative to establish relations with Australia. {: type="1" start="1"} 0. to (3) The matters dealt with in this question have been the subject of questions and answers in the House and of a major debate and I do not propose to add to what has already been said. {:#subdebate-96-17} #### Overseas Investment (Question No. 5182) {: type="1" start="1"} 0. Has his attention been drawn to the reported remarks in the press on 29th February 1972, of **Mr D.** J. Hibberd, Chairman of Comalco and a member of the Reserve Bank Board, which expressed criticism regarding the Government's failure to provide policy guides to overseas mining companies wishing to invest in Australia. 1. If so, is there any justification for this criticism. 2. Does the Government provide guide lines; if so, what are they. 3. What machinery exists for the review of guide lines and what action is contemplated in view of the reported criticism. {: type="1" start="1"} 0. Yes. 1. , (3) and (4) In a statement of Government policy on overseas investment made by the former Prime Minister in the House of Representatives on 16th September 1969, the basic principles of a code *of* good corporate behaviour were stated in the following terms: {: type="1" start="1"} 0. A high degree of Australian autonomy, with Australian' citizens participating on the boards of directors and in the management of companies; 1. The objective of a financial structure which provides opportunity for equity participation by Australians; 2. A sensitivity to the reasonable national aspirations of Australia which whilst somewhat indefinable in detail are known quite well by all those m this House and by anybody who is at all sensitive to these aspirations, and who as a company has intentions of investing in this nation.' Policy on overseas investment in Australia is currently being reviewed. {:#subdebate-96-18} #### Lake George (Question No. 5190) {: type="1" start="1"} 0. Do his scientific advisers regard the periodical drying up of Lake George as a phenomenon. 1. If not, what is the generally accepted theory for this recurring happening. 2. Is there any support for the theory that an earth fault beneath the Lake has some effect on its changing water level. {: type="1" start="1"} 0. CSIRO does not have a hydrologic research programme on Lake George but believes, on the basis of current knowledge, that the periodical drying up of the Lake is not an unexplained event. I am advised that the Bureau of Mineral Resources, Geology and Geophysics, together with me Department of National Development published in 1964 a booklet 'Geological Excursions - Canberra District' and that investigations carried out since that date have not altered the opinions expressed in the booklet concerning the Lake's formation and changing water levels. 1. Lake George lies in a basin of internal drainage and its water level reflects the balance between run-off into the Lake and evaporation from it Drought conditions with little run-off result in a rapid decline in water level. 2. There is no evidence that an earth fault beneath the Lake has any effect on its changing water level. {:#subdebate-96-19} #### Price Rises (Question No. 5234) {: type="1" start="1"} 0. Did he refer on 5th March 1972 to a steel price rise as a political and economic problem and a major political decision. 1. Did the Treasurer express the view that the rise was a commercial decision; if so, what is Kbe reason for this apparent conflict in views. 2. Will the Government's investigation of its powers to provide justification of price as well as wage rises, to which he referred on 5th March 1972, include investigation of possible use of tariff, subsidy, contract letting, foreign affairs and other powers to supplement the powers of a prices justification tribunal in controlling undue rises of prices and profits, and possible extensions of Commonwealth powers by referendum. {: type="1" start="1"} 0. and (2) There is no conflict between the comments I made in the course of a television interview on 5th March and the Treasurer's comments referred to in the question concerning the decision by B.H.P. to increase its prices. 1. I am informed that the legal examination of questions in this area would involve consideration of all relevant powers. {:#subdebate-96-20} #### China (Question No. 5239) >In supplying the answer to question No. 5105 will he itemise the Commonwealth expenditure. >See my answer to question No. 5105. {:#subdebate-96-21} #### Electoral (Question No. 5336) {: type="1" start="1"} 0. Can he say in what countries and states (a) proportional representation and (b) preferential voting for single electorates similar to the Australian system is used in voting in parliamentary elections. 1. If so, what are the names of those that vote for (a) single electorate and (b) more than one electorate, in the case of those using the system of proportional representation. {: type="1" start="1"} 0. and (2) The National Librarian has furnished the following information: Countries which employ the system of preferential voting as practiced in the elections for the Australian House of Representatives - {:#subdebate-96-22} #### Iran and Korea Countries which employ proportional representation with the whole country treated as an electorate Colombia; Guinea; Israel; Paraguay; Senegal; Uruguay; and Vietnam, Republic of (Senate). Countries which employ a system of proportional representation and which have more man one electorate. (N.B.- There are many variants of this system.) Austria (a); Belgium (a); Brazil - for House of Representatives (a), Costa Rica (a); Dominican Republic - for Chamber of Deputies (a); Ecuador (a); Eire (b); San Salvador (c); Italy (a); Lebanon (d); Liechtenstein (a); Luxembourg (a); Malta (e); Netherlands (a); Norway (a); Rwanda (a); Sweden (a); and Turkey - for Grand National Assembly (a). {: type="a" start="a"} 0. Proportional representation based on Party List system. 1. Proportional representation using single transferable vote. 2. Proportional representation based on closed Party List system. 3. Proportional representation - candidates grouped according to religion rather than Party. 4. Proportional representation using single non-transferable vote system. Countries where the electoral system cannot be categorised simply, but where it includes some elements of one of the other systems listed above - Bolivia - (Uses the party list system which is normally associated with proportional representation. However, the party whose list obtains the highest total number of votes obtains all the seats in a constituency). Chad - (Uses a system similar to that employed in Bolivia). Denmark - (Uses the party list system combined with the uninominal ballot. Electors can choose between voting for a party list, either as presented or in their own order of preference, and voting for individual candidates. 135 deputies are elected by a variant of the d'Hondt method. The remaining 30 seats are supplementary seats, distributed amongst the parties). Federal Republic of Germany - (Each elector has two votes: he votes once for the candidate of his choice to elect by a simple majority system, one deputy for his constituency (of which there are 248). The other 248 members of the Bundestag are elected from 11 federal states by a system of proportional representation using party lists). Finland - (Uses party list system in fourteen constituencies. The fifteenth, uses a simple plurality system to elect its one deputy). Greece - (A system of simple proportional representation was used for the last elections. However, the 1968 Constitution provides for the election of a portion not less than onesixth and not more than one-fifth, of the total number of deputies, on the basis of the proportional electoral strength of each party, using a party list system. The manner of election of the remaining deputies is not specified). Guatemala - (Uses the simple majority system in constituencies in which there is only one seat to be filled. When two or more seats are to be filled proportional representation based on party list system is used). Indonesia- (In the last election (July 1971) 100 of the 460 members of the DPR (Parliament) were to be appointed by the Armed Forces, the remainder to be elected by proportional representation on the party list system). Japan - (The system used for House of Representatives elections is basically one of the majority type. However, an element of proportionality is introduced to the system by the fact that the number of votes required for election must be equivalent to at least a quarter of the total valid ballots cast divided by the total number of seats to be filled in the constituency. The same system applies to elections for 150 of the 250 members of the House of Councillors, except that the relevant proportion is a sixth, instead of a quarter. The remaining 100 councillors are elected by the whole electorate acting as a single constituency, by a similar system, the proportion of the electoral quotient necessary for electors being in this case one-eighth). Mexico - (178 representatives of the Lower House are elected by single uninominal majority vote. The remaining 32 seals are then divided, proportionally to the votes collected for the whole of the country among the political parties which have registered as such for one year and which have now at least twenty seats). Portugal - (Uses a system similar to that which obtains in Bolivia). Switzerland - (For the election of the National Council - In the one canton and three semicantons which have a single seat each, elections are held on a uninominal single majority basis. The remaining twenty-two cantons employ a quite complicated form of the proportional party-list system). Turkey- (For Senate elections the system is similar to that which obtains in Bolivia). {:#subdebate-96-23} #### Electoral Division of Stuart (Question No. 5378) Br Klugman asked the Minister for the Interior, upon notice: {: type="1" start="1"} 0. Has the Returning Officer for the Northern Territory received a large number of statutory declarations in respect of the Electoral Division of Stuart following the Legislative Council elections 1971. 1. If so, do the declarants claim that they did not receive delivery of postal ballot-papers. 2. Are aD the persons making the declarations Aborigines. 3. Have further complaints been received about the failure to send postal votes to eight persons formerly of Areyonga and later of Docker River. 4. Will he ensure that the ballot for the Northern Territory in the next General Elections for the House of Representatives is conducted fairly and efficiently and not so as to disfranchise the maximum number of non-Country Party voters. {: type="1" start="1"} 0. to (5) Twenty-one statutory declarations made by Aborigines at Aileron Station were lodged with the Returning Officer for the Northern Territory on 9th March 1972 by **Mr Colin** Clague the unsuccessful candidate at the Legislative Council Election for the Electoral District of Stuart Investigations by a Commonwealth Police Officer have revealed that on 11th November 1971 **Mr and Mrs Clague** accompanied by another person, who witnessed each of the 21 statutory declarations as a Justice of the Peace, went to the Aboriginal camps at Aileron where the statutory declarations were taken. Twenty of these use the words 'I did not receive a postal ballot paper for the legislative Council elections held in October 1971 and 1 believe I am entitled to do so'. Investigations by Commonwealth police have established that the Aborigines concerned were informed through the Station Manager that the papers were at Aileron homestead for them to collect but that they did not collect them. The other statutory declaration claimed that the declarant had completed a postal ballot paper and returned it to the Station for posting. However, investigations have revealed that the declarant had not taken delivery of the voting papers and that the statement was evidently false, possibly as a result of poor translation. The investigations have revealed no irregularities in regard to postal votes for Aborigines at Aileron Station nor has any substantial evidence been submitted to the Returning Officer for the Northern Territory in regard to failure to send postal votes to Aboriginal voters elsewhere. {:#subdebate-96-24} #### Merchant Shipping Act (Question No. 5461) >Has a formal approach yet been made to the British Government for the amendment of the Merchant Shipping Act to remove the restrictions imposed by that Act on the legislative powers of the State Parliaments (Hansard, 26th August 1970, page 566, 29th September 1971, page 1710 and 25th November 1971, page 3777). >I have recently advised the Premiers that the Government has agreed to a request by the States that an approach be made to the British Government for an amendment to be made to the Merchant Shipping Act (1894). The terms of the formal communication to the British Government are currently under consideration. {:#subdebate-96-25} #### Post-Graduate University Fees (Question No. 5490) >By what (a) amount and (b) percentage will the fees payable for each post-graduate course in each university in 1972 exceed the fees payable in 1971. >I refer the honourable member to my answer to his Question No. 5491 concerning fee increases for all degree courses in each university in 1972. {:#subdebate-96-26} #### University Fees (Question No. 5491) >By what amount and percentage will the fees payable for each degree course in each university in 1972 exceed the fees payable in 1971. >The information requested has been supplied by all universities and is shown in the following table. Unless otherwise indicated, course fees are based on subjects normally studied in a full-time course completed in minimum time. All compulsory fees for the course are included, except those payable to student bodies. Courses available in 1972 Increase in 1972 fees over those Percentage in 1971 Increase University of Tasmania - Undergraduate - Arts- Pass Honours Agricultural Science Commerce/ Economics - Pass Honours Dentistry, 1 year Engineering Forestry, 2 years Law Medicine . . > Science - Pass Honours Veterinary Science. 1 year Postgraduate - Masters Doctor of Philosophy Australian National University; 126 168 132 90 120 36 144 72 144 216 108 144 36 22 22 Per ecn' 10.3 10.3 6.9 7.0 7.0 7.8 7.8 7.8 8.1 7.7 7.8 7.8 7.8 8.7 8.7 Science - Pass Honours Postgraduate- Masters Doctor of Philosophy 24 78 2.2 6.0 {: type="a" start="a"} 0. 2 years course in 1971 ; one year course in 197Z 1. Plus excursion fees as follows: Civil $48 Chemical $50 Mechanical S24 lc) Plus fees for excursions as follows. Botany S60 Geology $32 Id) Plus $56 for excursions in Honour.' Economic Geology {:#subdebate-96-27} #### Status of Forces Agreement (Question No. 5507) {: type="1" start="1"} 0. Has the reciprocal Status of Forces Agreement with the United States yet been concluded, as envisaged in the protocol to the Agreement of 9th May 1963 concerning the status of United States forces in Australia (Hansard, 16th November 1964, page 3058 and 21st September 1966, page 1160). 1. What arrangements govern the status of Australian servicemen in the other countries where they are at present stationed. {: type="1" start="1"} 0. No 1. The only countries with which Australia has made arrangements governing the status nf Australian servicemen are Malaysia, Singapore and Vietnam. The relevant documents are: Malaysia and Singapore - Exchange of Notes with each country on 1st December 1971 pursuant to the Five Power Defence Arrangements. (These documents were tabled in the House of Representatives on 28th March 1972). Vietnam - in 1963 Australia requested and was granted for its personnel, products, material and equipment, the privileges, advantages and immunities enjoyed in Vietnam by the personnel, products, material and equipment of the United States of America under the agreement for Mutual Defence Assistance in Indo China which was signed at Saigon on 23rd December 1950. (UN Treaty Series, No. 2456, Vol. 185 pp. 4-43). Ministerial Conference on National Parks (Question No. 5528) {: type="1" start="1"} 0. Where and when has the ministerial conference on national parks met since 14th August 1970. 1. What were the names and portfolios of the Ministers who attended each meeting. 2. What requests or suggestions were made at each meeting for legislative or administrative action by (a) the Commonwealth (b) the Territories and (c) the States. {: type="1" start="1"} 0. A ministerial conference on national parks met in Perth, Western Australia, on 20th August 1971. 1. and (3) As the conference is preponderantly one of State Ministers established by State initiatives, it is suggested that the honourable member direct any queries concerning the conference to the Conference Secretariat, c/o the Director, National Parks and Wildlife Service, Sydney, New South Wales. The Ministers for the Interior and External Territories were unable to attend. {:#subdebate-96-28} #### Land Development Costs (Question No. 5526) >Will he bring up-to-date the information on comparative land development costs (Hansard, 23rd April, 1971, page 2012). > >LAND DEVELOPMENT COST COMPARISON > >Item > >Unit > >Housing > >NCDC, Commission, Canberra Vie. > >TooHousing Wagga woomba Trust, CC, CX., NAW. Qld > >Housing Wangar- > >Com- atta mission, CC, Brisbane > >N.S.W. Vic CC > >Campbell- > >Housing town Waverley Department, CC, CC. Tas. N.S.W. Vic- > >Roads - Includes kerbs and gutters and bituminous concrete - > >20 ft between kerbs > >24 ft between kerbs . . (iti) 34 ft between kerbs > >Footpaths - 4-ft wide concrete Kerb and channel(n) Stormwater drains - Supply pipes, trench lay and backfill- (!) 12-in diameter .. linft > >18-in diameter ..linft linft linft linft linft linft 8.75-10.25 (0)10.26-13.41 9.83-11.51 (b)ll. 63-15. 25 13.13-15.29 (b)15. 07-19. 95 (i)l.OO 1.43 > >0)1.29 1.55- 1.68 > >(p>4.04 2.85- 3.59 (p)5.71 (u)4.50- 5.38 (c)7.50- 9.00 (c)8. 50-1 1.00 (c)12. 00-16.00 > >001.10 (0)0.85 > >8.70 (e)10.44 (d)11.85 (e)14.80 > >0)1.29 1.64 > >3.25 > >(v)4.40 (w)6.35 (m)2.00 1.75 (q)3.00 > >(OJ4.35 11.50 f)13.00 17.75 (1)1.80 1.55 (r) (v)4.00 (g)12.40 (h)I4.94 0)1.35 1.70 (s)2.70 004-00 2.00 1.65 (t)4.00 (z)6.00 $7.20-7.68 0)1.20-1.60 1.25-1.80 2.40-3.60 (v)3.30-4.80 T15.00 T19.00 (ki)2.00 2.40 3.60 3.85 (a)17.45 (a)19.85 (a)27.25 0)1.25 1.65 (y)3.40 (VH " 60 Pavement thickness 6 in-10 in, including sub-grade preparation. Bituminous concrete *i* in thick. Average over three major contracts. t Pavement thickness 7 in and includes earthworks and bituminous seal. 7 Pavement 8 in thick - excludes earthworks but includes prime and one coat flush seal only. {: type="a" start="a"} 0. Pavement thickness 1 1 in and includes earthworks and bituminous concrete *2i* m thick. 1. Pavement thickness 9) in-12 in and includes bituminous concrete but not earthworks. Calculated from costs given per sq yd. 2. 20 ft and 24 ft has 6 in pavement thickness including 1 in hotmix, 34 ft has 9 in pavement thickness including 1 1 in hotmix. fd) Calculated on cost given for 30 ft road includes drainage up to 24 in diameter pipes. Pavement thickness 6 in. Prime and two-coat seal only. 3. Kerbs only (not channel). Prime and two-coat seal only. Road aggregate from Council operated quarry. 4. Equivalent rates provided by Housing Commission, N.S.W., based on costs for 26 ft between kerbs and l-in thick bituminous concrete, pavement base course extended under kerb and channel. Excluding site preparation. 5. Including nature strip preparation, trees, and two-coat flush seal. 6. Based on cost of road 26 ft between kerbs. 7. 2 in thick. {: type="1" start="1"} 0. 3 in thick, calculated on price per sq yd given. 1. Calculated on price per sq yd given, (k) 2+ in thick and 4 in thick in driveways, (ki) 3 in thick and 5 in thick in driveways. (I) 3 in thick. 8. Bituminous spray over gravel. Road aggregate from Council operated quarry, (n) Kerb and channel section varies from Authority to Authority, (o) Concrete only. 9. Based on 6 ft depth, 12-in X class pipes, lS-in S class pipes. 10. S class pipe, depth 4 ft. 11. 15-in diameter pipes minimum used. 12. Pipe at 3 ft depth. 13. Minimum cover. 14. 18-in X class pipes laid at depth 3 ft-7 ft. (v) 18-in S class pipes average depth 4 ft. (w) Pipes laid at depth 4 ft-6 ft. (x) Class pipe at 5 ft depth. 15. X class pipe at 5 ft depth. Including cost of pit every 200 ft. (z) S class pipe with 'Minimum* cover. Note: Where CC. appears in the heading this denotes a 'City Council'. {:#subdebate-96-29} #### Australian Minerals Council (Question No. 5531) {: type="1" start="1"} 0. Where and when have there been meetings of (a) the Australian Minerals Council since 7th May 1971 and (b) its Advisory Committee since 28th September 1971. {: type="1" start="2"} 0. What were the names and portfolios of the Ministers who attended the Council. 1. What requests or suggestions were made at each meeting for legislative or administrative action by (a) the Commonwealth, (b) the Territories and (c) the States. 2. On what dates has the Council received reports on the study of Australian mining legislation which it initiated on 3rd March 1969 (Hansard, 2nd November 1971, page 2877). 3. How many applications for permits for offshore exploration have been submitted to his Department by each State since September 1969 (Hansard, 30th September 1971, page 1724). {: type="1" start="1"} 0. (a) The Sixth Meeting of the Austraiian Minerals Council was held in Newman, Western Australia on 30th May 1972. {: type="a" start="b"} 0. The Advisory Committee to the Australian Minerals Council has met twice since 28th September 1971. Firstly in Hobart on 21st and 22nd February 1972 and secondly in Perth on 29th May 1972. {: type="1" start="2"} 0. The Ministers who attended the Sixth Meeting of the Australian Minerals Council were: Hon. R. J. Hunt, M.P.; Minister for the Interior. {:#subdebate-96-30} #### Hon. W. C. Fife, M.L.A.; Minister for Mines and Conservation, New South Wales {:#subdebate-96-31} #### Hon. J. C. M. Balfour, M.L.A.- Minister for Fuel and Power and Minister of Mines, Victoria Hon. G. R. Broomhill, M.H.A.; Minister of Environment and Conservation and Minister Assisting the Premier, South Australia. {:#subdebate-96-32} #### Hon. D. G. May, M.L.A. ; Minister for Mines and Electricity, Western Australia {: type="1" start="3"} 0. lt was announced in the Press Statement released at the conclusion of the meeting of the Australian Minerals Council that {: type="i" start="i"} 0. the Council had agreed on a set of principles which it considered Governments need to have regard to in considering the matter of mining and its relation to the environment. 1. the Council received a progress report by a Working Group of officers which had been formed to study the comprehensive Report of the Senate Select Committee on Offshore Petroleum Resources. 2. the Council received a report by the Committee which bad been set up to consider the control of divers and diving operations in connection with petroleum exploration and approved, inter aiia, proposals for the updating of directions and for the preparation and early promulgation of regulations relating to diving in Australian offshore areas. 3. the Council considered principles which should be incorporated in mining legislation and noted that several States and the Northern Territory have this subject under active consideration. 4. the Council approved in principle proposals originated by the Geological Society of Australia for legislation to be introduced for the registration of geologists and geophysicists and the control of professional geological and geophysical practice in Australia and authorised the preparation of a first draft of legislation which would be considered for introduction into the Commonwealth and State Parliaments. 5. the Council requested that the Bureau of Mineral Resources of the Department of National Development prepare and issue a layman's guide' to exploration practices and terminology designed to assist assessment of reports of mining developments. 6. the Council also considered other matters including a report of the proceedings in the United Nations Committee on the Peaceful Uses of the Seabed, the prevention, control and liability in regard to blowouts and oil spillage arising from offshore petroleum activities and misrepresentation of exploration information. The honourable member has been advised previously that the Advisory Committee to the Council is a Committee of the Heads of the Dspartments whose Ministers are members of the Council. lt is not the practice to release publicly information dealing with the operation of this and similar Committees. {: type="1" start="4"} 0. See answer to (3) (iv) above. 1. Since September 1969, the following applications for titles over offshore areas for minerals other than petroleum have been referred to the Department of National Development: {:#subdebate-96-33} #### New South Wales- 33 Queensland - 16 Tasmania - 7 Naturalisation (Question No. SS8I) {: type="1" start="1"} 0. What reasons have been advanced by the 6 officers of his Department and accepted by the Department for their declining to become Australian citizens although having the authority to represent Australia in 6 overseas countries, as referred to in his answer to question No. 5050 (Hansard, Ilth April 1972, page 1475). 1. Does his reply mean that it is possible for other non-citizens to represent Australia overseas or is the exemption granted to one group of noncitizens only. {: type="1" start="1"} 0. and (2). In accordance with section 34 of the Public Service Act all permanent officers of *the* Commonwealth Public Service must be British subjects but there is no formal requirement that they be Australian citizens. The practice has not been to require officers posted overseas to take out Australian citizenship. In the absence of any legislative requirement the officers involved were not asked to advance reasons for not having taken out Australian citizenship. Nevertheless, as a matter of practice my Department satisfies itself that officers posted overseas with a representational role have a sufficient Australian connexion to enable them to carry out that role effectively. {:#subdebate-96-34} #### Public Service (Question No. 5596) {: type="1" start="1"} 0. How many officers of the First and Second Divisions were employed in each Department of the Commonwealth Public Service in 1949. 1. What were their respective salaries and allowances. 2. What were their titles. 3. What are the comparable figures and titles in 1972. 4. What was the total amount paid in salaries to' First and Second Division officers in 1948-49. 5. What will be the total amount payable in 1971-72. >As no detailed records have been maintained concerning officers employed at 30th June 1949 parts (1), (2), (3) and (5) of the question have been answered on information available at 30th June 1948. > >The number of officers of the First and Second Divisions in each Department of the Commonwealth Public Service at 30tfi June 1948 is shown in Attachment 'A'. > >At 30th June 1948 no allowances were payable to officers of the First and Second Divisions. The annual actual salary payable to each officer of the First and Second Divisions at 30th June 1948 are shown in Attachment 'B > >The titles of each officer in the First and Second Division at 30th June 1948 are shown in Attachment 'B > >Comparable figures and titles at 31st March 1972 are shown in Attachments 'C and 'D First Division Officers receiving an annual salary of $22,750 per annum receive an allowance of $1,500 per annum; First Division Officers receiving an annual salary of $19,500 per annum receive an allowance of $1,000 per annum; Second Division Officers do not receive an allowance. > >The amount paid in salaries to First and Second Division officers in 1947-48 cannot readily be separated from total expenditure on. salaries. On the assumption that the salaries shown in Attachment 'B' were payable without variation during the whole year, the salaries paid would have approximated £566,000. > >Salaries and allowances payable to First and Second Division Officers in 1971-72 cannot be readily separated from total expenditure on salaries and allowances. However, if the establishment which existed at 31st March 1972, as detailed in Attachment 'D', had been permanently staffed at those levels throughout the whole year, subject only to the Second Division salary variation of 4th November 1971, the total of salary payable (including Permanent Head allowances) would be estimated to be S 14.0m. > >ATTACHMENT A COMMONWEALTH PUBLIC SERVICE PERMANENT SUBSTANTIVE OffiCERS AT 30 JUNE 1948 {:#subdebate-96-35} #### First Second {:#subdebate-96-36} #### Department Division Division {:#subdebate-96-37} #### Assistant Secretary (Organisation and {:#subdebate-96-38} #### Planning) .. .. .. 1,488* {:#subdebate-96-39} #### Chief Finance Officer .. 1,676 Assistant Secretary (Policy and Administration) .. .. .. 1,551 Attorney-General's First Division - The Secretary to the Attorney- {:#subdebate-96-40} #### General's Department . . . . 3,500 {: .page-start } page 167 {:#debate-97} ### ATTACHMENT 'D {: .page-start } page 167 {:#debate-98} ### COMMONWEALTH PUBLIC SERVICE ESTABLISHMENT AND PERMANENT SUBSTANTIVE OFFICERS AT 31 MARCH 1972 {:#subdebate-98-0} #### Department, Division and Designation {:#subdebate-98-1} #### Number Annual of positions actual Number nominally salary of Officers vacant {:#subdebate-98-2} #### Air- First Division The Secretary to the Department of Air Second Division Director {:#subdebate-98-3} #### First Assistant Secretary {:#subdebate-98-4} #### Assistant Secretary Army- {:#subdebate-98-5} #### First Division - The Secretary to the Department of the Army Second Division - {:#subdebate-98-6} #### Director {:#subdebate-98-7} #### First Assistant Secretary Assistant Secretary {:#subdebate-98-8} #### Attorney-General's- First Division The Secretary to the Attorney-General's Department Second Division - {:#subdebate-98-9} #### Crown Solicitor {:#subdebate-98-10} #### Deputy Secretary {:#subdebate-98-11} #### Deputy Crown Solicitor {:#subdebate-98-12} #### First Assistant Crown Solicitor . {:#subdebate-98-13} #### First Assistant Secretary {:#subdebate-98-14} #### Commissioner of Patents Special Adviser on International Law (Temporary) {:#subdebate-98-15} #### Crown Law Officer {:#subdebate-98-16} #### Deputy Crown Solicitor {:#subdebate-98-17} #### Industrial Registrar {:#subdebate-98-18} #### Principal Registrar {:#subdebate-98-19} #### Senior Assistant Crown Solicitor . {:#subdebate-98-20} #### Senior Assistant Secretary {:#subdebate-98-21} #### Assistant Crown Law Officer {:#subdebate-98-22} #### Assistant Crown Solicitor {:#subdebate-98-23} #### Assistant Deputy Crown Solicitor {:#subdebate-98-24} #### Assistant Secretary {:#subdebate-98-25} #### Commissioner of Police {:#subdebate-98-26} #### Crown Prosecutor {:#subdebate-98-27} #### Deputy Commissioner of Patents {:#subdebate-98-28} #### Deputy Crown Solicitor Inspector-General in Bankruptcy . . {:#subdebate-98-29} #### Stipendiary Magistrate Office of Parliamentary CounselSecond DivisionSenior Assistant Parliamentary Counsel . . Office of the Commissioner of Trade Practices - Second DivisionDeputy Commissioner Assistant Commissioner {:#subdebate-98-30} #### Civil Aviation - First Division - {:#subdebate-98-31} #### The Director-General of Civil Aviation {:#subdebate-98-32} #### Second Division - Deputy Director-General Australian Council Member (ICAO) (Temporary) {:#subdebate-98-33} #### First Assistant Director-General {:#subdebate-98-34} #### Regional Director {:#subdebate-98-35} #### Senior Assistant Director-General {:#subdebate-98-36} #### Assistant Director-General {:#subdebate-98-37} #### Regional Director 19,500 15,879 15,879 14.375 19,500 15.879 15,879 14,375 22,750 21,908 21,908 18,891 18,891 18,891 17,385 17.385 15.879 15,879 15,879 15,879 15,879 15,879 14.375 14.375 14.375 14,375 14,375 14,375 14,375 14,375 14.375 14,375 15.879 17,385 14,375 19.500 18,891 17,385 17,385 15,879 15,879 14,375 14,375 3 8 1 4 2 1 1 2 1 1 I 6 Number Annual of positions actual Number nominally Department, Division and Designation salary of Officers vacant Trade and IndustryFirst Division - The Secretary to the Department of Trade and Industry .. 22.7SO 1 Second Division - Deputy Secretary .. .. 18,891 2 Head, Ofhce of Secondary industry .. .. .. 18,891 I First Assistant Secretary .. .. .. 17.385 9 Special Commercial Adviser .. .. .. 17.385 1 Assistant Secretary .. .. .. .. 14.375 22 Regional Director .. .. .. .. 14.375 I 1 Office of the Tariff BoardSecond Division - Chief Executive Officer .. .. .. 17,385 2 Assistant Chief Executive Officer . . . . . . 14.375 5 1 Treasury- First Division - The Secretary to the Department ol' the Treasury .. .. 22.750 1 Second Division - Deputy Secretary .. .. 21,908 I Deputy Secretary (Economic) .. .. 21,908 I Deputy Secretary (Supply and General) ' .. .. .. 21,908 1 Commonwealth Actuary . . .. ..< 18.891 I First Assistant Secretary .. .. .. .. 18,891 8* 1 Controller............ 17.385 I .. Assistant Secretary .. .. .. .. .. 15,879 24** 4 Assistant Secretary .. .. .. .. .. 14.375 I Director .. .. .. .. .. 14,375 I Investments Manager .. .. .. .. 14.375 I Secretary . . . ....... . . 14,375 I Superintendent .. .. .. .. .. 14.375 .. 1 Statisticians BranchSecond Division - Commonwealth Statistician .. .. ... 21,908 I Deputy Commonwealth Statistician . . . . . . 17.385 2 Director .. .. .. 15,879 I Assistant Statistician . . . . . . . . 14.375 9 Deputy Commonwealth Statistician . . . . .. 14,375 2 1 Deputy Director .. .. .. 14.375 I Commonwealth Taxation OfficeSecond Division - Deputy Commissioner of Taxation .. .. .. 18,891 2 Deputy Commissioner of Taxation .. .. .. 17.385 I First Assistant Commissioner of Taxation .. .. 17,385 5* 1 Deputy Commissioner of Taxation .. 15,879 2 First Assistant Deputy Commissioner of Taxation .. 15,879 *2* Senior Assistant Commissioner of Taxation .. 15.879 3 Assistant Commissioner of Taxation .. ..' 14,375 7 Assistant Deputy Commissioner of Taxation .. .. 14,375 13 Deputy Commissioner of Taxation .. .. .. 14.375 I Works- First Division - The Director-General of Works .. .. .... .. 19.500 I Second Division - Deputy Director-General . . . . . . . . 20,398 . . 1 First Assistant Director-General .. .. .. .. 18,891 3 Director of Works .. .. .. 17,385 8 Senior Assistant Director-General .. .. .. 17,385 2 1 Assistant Director .. .. .. .. 15,879 12 3 Assistant Director-General .. .. ..' .- 15,879 16 2 Director .. .. .. 15,879 I Assistant Director ... . . . . 14,375 4 Deputy Assistant Director-General . . . . 14.375 . . 1 {:#subdebate-98-38} #### Vietnam (Question No. 5612) {: type="1" start="1"} 0. Has his attention been drawn to charges that Australian servicemen in Vietnam have fathered 1,000 part-Vietnamese children. 1. If so, will he order an immediate investigation and make the facts known to the Parliament. 2. If the position is not as claimed, will he refute the charges publicly. 3. If there are part-Australian children in Vietnam, will he indicate the number and confer with his colleague the Minister for Immigration to facilitate their adoption and entry, into Australia. {:#subdebate-98-39} #### Noise: Sydney (Kingsford-Smith) Airport (Question No. 5614) {: type="1" start="1"} 0. How many breaches of the curfew at Sydney (Kingsford-Smith) Airport occurred on 30th and 31st March, and 1st, 2nd, 3rd and 4th April 1972. 1. Who authorised the breaches and on what basis was each permitted. 2. How many complaints have been received regarding noise deriving from the open running-in or tuning of aircraft engines at the airport during the early hours of the last Easter holidays. 3. Why was the incidence of this irritating noise necessary. 4. What regulations or instructions govern these practices. 5. If necessary, will the Minister review these regulations so as to relieve thousands of residents living near the airport of distressing inconvenience during normal sleeping hours. {: type="1" start="1"} 0. A total of 54 jet aircraft took off and landed between 1] p.m. and 6 a.m. at Sydney (Kingsford-Smith) Airport on the dates in question. The daily movements during the curfew period were: 30th March- 14 31st March- 15 1st April - 1 2nd April- Nil 3rd April- 11 4lh April- 13 1. (a) Forty-four of the movements were special flights by the domestic airlines to cater for increased public demand during the Easter holiday period. Approval to operate these flights was given by the Minister for Civil Aviation. {: type="a" start="b"} 0. Nine of the movements were correctly scheduled at or shortly before 11 p.m. No special approval is required for such flights since the curfew is designed to prevent the regular scheduling of jet aircraft between the horn's of 11 p.m. and 6 a.m. Published schedules relate to times of departure from the passenger terminal and it is accepted that some time must elapse before the aircraft is ready for take-off from the duty runway. 1. There was one breach of the curfew regulations. A flight that was scheduled for departure at 10.20 p.m., taxied at 11.10 p.m. and took off at 11.21 p.m. Approval to operate a flight delayed until after 11 p.m. must be obtained from the Regional Director, Department of Civil Aviation, New South Wales Region. The Regional Director may delegate this authority to a nominee, usually the Airport Director. The breach occurred on Easter eve and no such approval was sought or given for the flight. The circumstances are being investigated by the Department of Civil Aviation. 2. There is no record of any complaints regarding the ground running of aircraft engines over the Easter holiday period. Two complaints were registered on the Thursday morning preceding Good Friday. 3. Ground running of aircraft engines for test purposes and maintenance is an essential part of aircraft operations and is directly related to safety, requirements. The Department of Civil Aviation has imposed restrictions on the ground running of aircraft engines between 11 p.m. and 5 a.m. and the airline operators provide regular reports to the Airport Director of all engine runs conducted between 1 1 p.m. and 7 a.m. 4. Strict control is applied to ensure that running engines on the ground at the airport for maintenance purposes causes a minimum of inconvenience to nearby residents. The procedures cover a number of pages of instructions to operators but the primary objective of these procedures is to ban the running of engines between 11 p.m. and 5 a.m. except in unusual cases of need. In such cases special parking areas are set aside taking into consideration the wind conditions which would be likely to 'blow' the noise in a particular direction away from residences. From 5 a.m. until 7 a.m. engine running is further restricted to those aircraft required for early morning departures. 5. The regulations governing the ground running of aircraft engines are regularly reviewed by the Department of Civil Aviation. Although the number of ground running complaints is not high there is a possibility that some necessary, but routine ground running might be conducted while the aircraft concerned is on the ground at a location other than Sydney. This possibility is under investigation and may result in a reduction in the frequency of ground runs that take place at Sydney. {:#subdebate-98-40} #### Investment: Indonesia (Question No. 5637) {: type="1" start="1"} 0. Will he supply the latest figures on investment in Indonesia by Australia and other countries? 1. How many new enterprises have been commenced in Indonesia .by foreign countries in the last 12 months? 2. How many new Australian enterprises have been commenced in Indonesia in the same period and what were they? {: type="1" start="1"} 0. The latest official figures released by the Indonesian Government show all approved foreign investment for the period 1967 to March 1972. {: .page-start } page 174 {:#debate-99} ### APPROVED FOREIGN INVESTMENT PROJECTS ACCORDING TO COUNTRY OF ORIGIN 1967 UP TO MARCH 1972 {:#subdebate-99-0} #### Number of {: type="1" start="2"} 0. A total of 144 foreign investments with a value of SU.S.356m were approved in the last fifteen months. It is not known if all are new investments or re-investments in existing operations. 1. 12 new Australian enterprises were approved in the same period. Additionally, approval was granted for further investment in one existing enterprise. The areas of investment are as follows: battery production synthetic resins, ink and adhesive plant industrial gas factory air taxi air charter tin mining operation hoe plant mining operation metal windows and door factory aluminium fabrication plant civil engineering industrial estate construction condensed milk plant {:#subdebate-99-1} #### Pathology Reports (Question No. 5641) >Are pathology reports furnished by a (a) general practitioner not specialising in pathology and (b) medical technologist, either conjointly or on their own account, recognised as valid reports by the Department of Health for reimbursement purposes by medical funds and from the technical point of view. >Pathology services listed in the First Schedule to the National Health Act which are carried out by or on behalf of a medical practitioner qualify for medical benefits. {:#subdebate-99-2} #### National Development (Question No. 5643) >What is the present position in regard to the forward national development planning report initiated in 1969, completed in 1970 and which has since been under inter-departmental consideration (Question No. 3797. Hansard 28th October 1971, page 2798). >As mentioned in my reply to a similar question by the honourable member on 28th October last year, the document is still under consideration. Qantas Traffic Rights in Israel (Question No. 5702) {: type="1" start="1"} 0. What steps have been taken to secure landing rights and establish booking offices for Qantas in Israel since the answers by former Ministers on 29th September 1964 (Hansard, page 1615), 20th October 1964 (Hansard, page 2132) and 7th September 1967 (Hansard, page 1023). 1. Which airlines now operate services to both the Arab Republic of Egypt and Israel. {: type="1" start="1"} 0. As part of the periodic evaluation made by Qantas into the commercial prospects of adding new traffic points to its network of services, the company has kept under review the possibility of instituting a service to Israel. As has been explained' to the Israeli authorities, these reviews have led Qantas again recently to conclude that the limited end-to-end traffic between Australia and Israel does not provide a commercial basis for the commencement of services to Israel. The Government has therefore not moved to secure traffic rights in Israel nor has Qantas sought to establish booking offices there. 1. The airlines which now operate services to the Arab Republic of Egypt and services to Israel are as follows: Trans World Airlines, Alitalia, KLM, Air France, BOAC, Lufthansa, Cyprus Airways, Swissair, Sabena, Olympic Airways, SAS and Tarom. International Telephone and Telegraph Corporation (Question No. 5708) **Mr Grassby** asked the Prime Minister, upon notice: {: type="1" start="1"} 0. Will he urgently investigate reports of the announced decision by the International Telephone and Telegraph Corporation to take over Frozen. Food Industries of Australia. 1. Has his attention been drawn to the inquiry by the Senate Judiciary Committee of the United States Congress into the activities of the Corporation in connection with the appointment of **Mr Richard** Klemdienst as United States AttorneyGeneral, this inquiry having arisen during the course of the committee's confirmation hearings on the filling of the position of AttorneyGeneral. 2. Has his attention also been drawn to the weekly report of the Congressional Quarterly of 25th March 1972, page 664, which refers to allegations concerning the political activities of the Corporation. 3. Can he say whether the company has indicated that it intends to buy into Australia to compensate for its losses in Chile where the government has taken over the assets of the Corporation. 4. Can he also say whether the Parliament of Chile has determined to investigate allegations of improper political activity by the Corporation and allegations that it has sought to interfere improperly in democratic processes. 5. If tfie position is as stated and as half of the top 40 food lines in Australia are now foreign controlled, will he take steps to halt any further takeover of the companies responsible for so much of the food on Australian meal tables to safeguard our people from monopoly exploitation by foreign corporations. {: type="1" start="1"} 0. On 3rd May 1972 International Telephone and Telegdaph Corporation announced that its offer would be deferred until the Treasury Economic Paper 'Overseas Investment in Australia' was tabled in Parliament and the Government's general policy on overseas investment was made clear. In the circumstances, it would be premature to instigate at this stage an investigation of trie takeover proposal. 1. and (3) My attention has not been specifically drawn to the matters mentioned by the honourable member. 2. and (5) No. 3. The honourable member will be aware that the Treasurer tabled in the House on 16th May 1972 the Treasury Economic Paper 'Overseas Investment in Australia'. This paper analyses, from the Australian viewpoint, the principal economic issues raised by overseas investment in Australia and provides a basis for policy discussion. As has been announced, the Government has under review, following tabling of the paper, the policy issues which are raised by overseas investment in Australia in its various forms. {:#subdebate-99-3} #### States Grants Acts (Question No. 5720) {: type="1" start="1"} 0. Are grants approved under the States Grants (Science Laboratories) Act and the States Grants (Secondary Schools Libraries) Act subject to audit; if so, by whom. 1. If a full statement of expenditure is requested by his Department, by whom is it authorised and at what stage is the audit submitted to the Department. 2. Are audits of this nature available to the Parliament; if not, will he consider the desirability of supplying information of this nature. {: type="1" start="1"} 0. Yes. For each year to which each of the respective Acts applies, each State AuditorGeneral is expected to provide my Department with a statement of expenditure of funds made available to the State for expenditure on its own schools under the governing legislation concerned. The conditions attached to an offer of a grunt to non-government secondary school, under both Commonwealth programmes, require that, in respect of a grant for building, the school concerned will supply the Minister with a report from the school's auditor, who is generally, a qualified accountant not associated with the administration of the school, certifying the total amount expended on the project by the school. The conditions attached to offers of grants for science teaching apparatus, library books, furniture and equipment to non-government secondary schools require the school's auditor to certify to the items purchased, to give their prices and to certify that the grant made has been applied exclusively to those purchases. {: type="1" start="2"} 0. In respect of. grants made to the Stales for their own secondary schools, I refer the honourable member to my reply to part 1 of his question. As to non-government secondary, schools which receive grants for building, the Minister is supplied by the architect concerned, after construction is complete, with a report that the project has been completed to the standard shown on the approved sketch plans. The costs relating to the project its given by the architect must be supported by the auditor's certification, to which I have referred. Auditors' statements are submitted as soon as possible after final costs of a project are known. 1. The Science Facilities Programme started in July 1964 and the Libraries Programme in January 1969. To date several thousand auditors' certificates in respect of grants made have been received by my Department under the two programmes. 1 am happy for the honourable member to see such statements from a particular school, if he wishes to nominate such a school. The honourable member will be aware that under the provisions of the States Grunts (Science Laboratories Act 1971, and the States Grants (Secondary Schools Libraries) Act 1971, the Minister is required to present a report to Parliament each year to which the respective Acts apply. This report contains for both government and non-government secondary, schools, the names of schools which have received assistance in the year which is the subject of the report. In addition it lists the amounts paid to particular nongovernment schools. {:#subdebate-99-4} #### Sydney (Kingsford-Smith) Airport (Question No. 5722) {: type="1" start="1"} 0. Do the operations procedures at Sydney (Kingsford-Smith) Airport require aircraft to maintain track to 5 miles of the Airport before break-off is made to track to a point 3 miles from the nominated runway for landing. 1. ls it a fact that aircraft tracking on to the 07 runway and breaking off for a landing on 16 runway are only about 1,500 feet above sea level at the break off point and on the 3-mile final less than 1,000 feet 2. If so, does this procedure take aircraft over residential areas. 3. If aircraft are flown over these areas will the Minister investigate the possibility of changing die procedures to ensure that aircraft are tracked onto the nominated runway for landing before they reach heavily populated residential areas in order to reduce the noise level. {: type="1" start="1"} 0. A pilot is required to follow the route clearance until within 5 miles of the aerodrome and the aerodrome is in sight before break-off is made to track direct to a point within 3 miles of the aerodrome for approach to a nominated runway. This requirement applies at Sydney only if the pilot has been authorised for air traffic control to make a particular type of approach known as 'Visual Approach'. The possibility of such tracking occurring at Sydney is limited by: {: type="a" start="a"} 0. noise abatement procedures which preclude air traffic controllers from permitting visual approaches in certain circumstances, and 1. normal control actions that result in aircraft necessarily being directed along different flight paths to provide anticollision separation between aircraft and an orderly and efficient spacing of the traffic. 1. Aircraft tracking towards the 07 runway and breaking off for a landing on the 16 runway would be at or about the altitudes mentioned in your question. 2. Tracking as described does result in flight over residential areas but it is also apparent that if the break-off were to be made earlier, flight over residential areas would still be involved. 3. Consideration has already been given lo ensuring that the tracking prescribed for visual approaches is limited in the interests of noise abatement. Considering air traffic handling problems and safely aspects I am unable to foresee any early possibility of completely abandoning the use of visual approaches at Sydney Airport, even though gains in the noise abatement sense for some situations have been recognised for some time. I should also point out that the tracking specifications for an aircraft making a visual approach have been carefully devised as a safety requirement related lo terrain clearance standards. Visit by Table Tennis Team from China (Question No. 5726) **Mr Whitlam** asked the Prime Minister, upon notice: {: type="1" start="1"} 0. What were the dates and sources of the two letters which he received concerning the forthcoming visit by a team from the Chinese Table Tennis Association (Hansard, 26th April 1972, page 1983). 1. On what date did the Minister for the Navy send a reply on his behalf to the first letter. 2. On what date and by whom was a reply sent to the second letter. 3. Why was a Government statement on the visit delayed until the - Minister for Foreign Affairs made a press release on 21st April 1972. {: type="1" start="1"} 0. to (4) The letters to which 1 referred in an answer to a question without notice (Hansard, 26th April 1972, page 1983), were both sent to my office by **Mr L.** H. Wharmby, President of the Australian Table Tennis Association. The letters were dated 15th November 1971 and 16th January 1972. Each was replied to within a month of receipt As the honourable member is aware, my Government welcomed the suggestion that a team from the Chinese Table Tennis Association visit Australia. It was not considered appropriate for the Government to issue a statement about the visit at any time before the time at which my colleague, the Foreign Minister, issued his statement on 21st April 1972, in response to press inquiries made that day. Papua New Guinea: Localisation of Boards (Question No. 5736) **Mr Whitlam** asked the Minister for External Territories, upon notice: >Hus indigenous representation been increased in Papua New Guinea on (a) the Coffee Marketing Board (Hansard, 16th February 1971, page 93), (b) the Copra Marketing Board (Hansard, 16th February 1971, page 93), (c) the Copra Industry Stabilisation Board (Hansard, 29th April 1971, page 2339), (d) the Housing Commission (Hansard, 20lh April 1971, page 1740), (e) the Land Board (Hansard, 22nd April 1971, page 1967), (f) the Harbours Board (Hansard, 29th April 1971. page 2339), (g) the Public Service Board (Hansard, 29th April 1971, page 2339), (h) the Education Board (Hansard, 29th April 1971, page 2339), (i) the Teaching Service Commission (Hansard, 29th April 1971, page 2339), and (J) the Retirements Benefits Board (Hansard, 29th April 1971. page 2340). {: type="a" start="a"} 0. Yes. **Mr ICalali** Wei is now a member of the Coffee Marketing Board. 1. No 2. Yes. **Mr Mahuru** R. Kama, M.B.E., is now a member of the Copra Industry Stabilisation Board. 3. No. 4. The matter referred to is one which falls within the authority of the Minister for Lands and Environment in the House of Assembly for Papua New Guinea. The Minister for Lands and Environment has provided the following information: The reply to the question on 22nd April 1971 referred to the Port Moresby Land Board. Since that date one indigenous member has been added to that Board. However there are altogether eighteen Land Boards in Papua New Guinea (one for each district), each Board normally comprising a Chairman and three members. Fourteen indigenous members were appointed to the Boards in July 1970 and a further sixteen have been appointed since that date. There has been one resignation by an indigenous member so that the present total indignous representation on Land Boards is twenty-nine. {: type="a" start="f"} 0. No. 1. No. The Public Service Board comprises a Chairman (Sere Pitoi) and three members (N. F. Wicks, F. N. W. Rolfe and Aisea Taviai). The Chairman and one of the members are Papua New Guineans. 2. The matter referred to is one which falls within the authority of the Minister for Education in the House of Assembly for Papua New Guinea. The Minister for Education has provided the following information: No. The membership of the National Education Board is as follows: {:#subdebate-99-5} #### Chairman - **Dr K.** R. McFCinnon {:#subdebate-99-6} #### Members - **Dr V.** McNamara "1 Tau Boga *r* Samuel Piniau j Father Ignatius {:#subdebate-99-7} #### Kilage A. Neuendorf Sister Magdelene {:#subdebate-99-8} #### Mary {:#subdebate-99-9} #### Pent Topapakat R. Philpott Vernon Guise Stanley Tomarita {: type="A" start="P"} 0. Boisrmtn 1. Schindler (vacant)* Representing the interests of the Administration Representing the interest of Churches and Missions. Representing the interests of teachers. Representing the interests of Local Government Council Representing institutions of tertiary education (other than technical col- Representing business and civic interests. * Formerly Albert Maori Kiki. {: type="a" start="i"} 0. No. The Teaching Service Commission at present comprises an indigenous Commissioner (Alkan Tololo) and an expatriate Associate Commissioner (F. E. Daveson). 1. No. The only change in indigenous representation on the Papua and New Guinea Retirement Benefits Board is that John Natera has replaced Simon Kaumi as the Contributors' Representative. It is the policy of the Government that Papua New Guineans should participate to the fullest extent possible in the management of the affairs of Papua New Guinea. Consistent with this policy the degree of indigenous participation on boards of statutory bodies is under constant review. Indignous representation on these boards will be increased as soon as practicable and wherever it is appropriate to do so. {:#subdebate-99-10} #### Pacific Islands Regiment (Question No. 5737) >How many (a) indigenes and (b) expatriates hold (i) commissioned and (ii) non-commissioned rank in the Pacific Islands Regiment (Hansard, 4th May 1971, page 2540). >As at 26th April 1972, the relevant strength categories within the Pacific Islands Regiment were: -(a) Indigenes - > >Commissioned officers - 24 > >Non-commissioned officers - 267 > >Expatriates - > >Commissioned officers- 59 > >Non-commissioned officers - 25 Papua New Guinea: Investments by Superannuation Funds (Question No. 5745) **Mr Whitlam** asked the Minister for External Territories, upon notice: >Have the Papua New Guinea Superannuation and Retirement Benefits Boards yet invested in Papua New Guinea industries or housing (Hansard, 3rd June 1970, page 2905 and 10th March 1971, page 810). >The Papua New Guinea Superannuation Fund and the Papua New Guinea Contract Officers Retirement Benefits Fund hold ordinary shares in Bougainville Mining Ltd. > >Both Funds hold debentures in some Australian companies which have established industries in Papua New Guinea. > >Neither Fund has invested directly in housing in Papua New Guinea. Both Funds invest in Papua New Guinea Administration securities, the proceeds of which are used to finance public works and services including housing. {:#subdebate-99-11} #### Papua New Guinea: Trade Commissioner Course (Question No. 5748) >Has any Papuan or New Guinean yet been included in a Trade Commissioner's course? (Hansard, 20th April 1971, page 1741), >To date no Papuan or New Guinean has been included in a Trade Commissioner training course conducted by my Department. > >The training of Papuans and New Guineans in international trade matters depends on the availability of university graduates as there are no suitable indigenes available with business backgrounds. Three indigenous trade trainees have been recruited to date for full-time university study. One of these has now graduated. To further his experience, he has attended meetings of ECAFE and UNCTAD as an observer, and will possibly attend a trade promotion course in Geneva later this year. He will subsequently be considered for inclusion in a future Trade Commissioner course. The second student is currently completing the final year of his university studies, and the third student is due to graduate at the end of 1973. These 2 students will similarly be considered for inclusion in Trade Commissioner courses in the light of their suitability following graduation. {:#subdebate-99-12} #### Papua New Guinea: Membership of Employees' Organisations (Question No. 5757) >What was the membership at 31st December 1971 of each employees' organisation registered in Papua New Guinea (Hansard, 1st April 1971, page 1411). >The membership at 31st December 1971 of each employees' organisation registered in Papua New Guinea is listed below: {:#subdebate-99-13} #### Name of Organisation Membership {:#subdebate-99-14} #### Milne Bay District Workers Association . . 330 {:#subdebate-99-15} #### Morobe District Worker's Association 1,982 {:#subdebate-99-16} #### New Ireland District Workers' Association . . . . 148 {:#subdebate-99-17} #### Northern District Workers' Association . . . . 78 {:#subdebate-99-18} #### Port Moresby Miscellaneous Workers {:#subdebate-99-19} #### Union . . 1,500 {:#subdebate-99-20} #### Port Moresby Clerical Workers' Union 230 {:#subdebate-99-21} #### Rabaul Workers' Association . . 200 {:#subdebate-99-22} #### Staff Association of Papua New Guinea Institute of Higher Technical Education 75 {:#subdebate-99-23} #### Staff Association of University of Papua New Guinea . . 279 {:#subdebate-99-24} #### Western District Workers' Association .. .. .. 21 {:#subdebate-99-25} #### Western Highlands District Workers' Association .. .. .. 11 {:#subdebate-99-26} #### West Sepik District Workers' Union 26 {:#subdebate-99-27} #### Papua New Guinea Teachers' Association 5,141 {:#subdebate-99-28} #### Police Association of Papua New Guinea .. .. 1,532 {:#subdebate-99-29} #### Local Government Officers' Association .. .. 33 {:#subdebate-99-30} #### Public Service Association of Papua New Guinea . . . . 15,606 {:#subdebate-99-31} #### Senior Police Officers' Guild . . 32 31.205 Commonwealth Minister: Air Travel (Question No. 5768) **Mr jones** asked the Minister representing the Minister for Civil Aviation, upon notice: {: type="1" start="1"} 0. Wh»t was the cost of (a) domestic and (b) international air travel for Commonwealth Ministers, Members and employees during the latest year for which figures are available. 1. What was the break-up between each airline. {: type="1" start="1"} 0. I have no knowledge of the total cost of air travel for Commonwealth Ministers, Members and employees. Domestic air travel costs for Commonwealth Ministers and Members are the responsibility of the Department of the Interior and the Department of the Prime Minister and Cabinet is responsible for international air travel costs. The cost for travel of ministerial employees is met by the Departments concerned. 1. Again I am not in a position to answer this question. {:#subdebate-99-32} #### Employment (Question No. 5779) {: type="1" start="1"} 0. How many job vacancies have been created by the Government's financial assistance to rural local authorities to reduce unemployment in each State for each month since the scheme came into operation. 1. How many of these vacancies have been Riled (a) once and (b) more than once where, for example, resignations have occurred. 2. Will he provide adjusted figures of the number of (a) registered unemployed and (b) job vacancies excluding the effects of this special assistance. {: type="1" start="1"} 0. and (2) Detailed information of the type referred to in the questions is not compiled. However, statistics are available of the numbers employed under the Non-Metropolitan Unemployment Relief Scheme and these are shown below for each State and as at the end of each month since the introduction of the Scheme in December 1971. 1. lt is not possible to determine what the number of registered unemployed and job vacancies would have been in the absence of the special assistance provided to local Government authorities in non-metropolitan areas. Any adjustments to the figures would only yield hypothetical results. {:#subdebate-99-33} #### Migrants: Naturalisation (Question No. 5797) Or Klugman asked the Minister for Immigration, upon notice: How many migrants from (a) Italy, (b) Yugoslavia, (c) Albania, (d) Greece, (e) Turkey, (f) Syria, (g) Lebanon, (h) Israel, (i) Egypt, 0) Iraq, and (k) Spain have been naturalised since 1945? {:#subdebate-99-34} #### Former {:#subdebate-99-35} #### Nationality Number {:#subdebate-99-36} #### Italian...... 155,505 {:#subdebate-99-37} #### Yugoslav .. .. 53,474 {:#subdebate-99-38} #### Albanian .. .. .. 1,165 {:#subdebate-99-39} #### Greek...... 74,656 {:#subdebate-99-40} #### Turkish...... 571 {:#subdebate-99-41} #### Syrian . . . . . . 382 {:#subdebate-99-42} #### Lebanese . . . . 7,136 {:#subdebate-99-43} #### Israeli...... 4,737 {:#subdebate-99-44} #### Egyptian . . . . . . 3,603 {:#subdebate-99-45} #### Iraqi...... 353 {:#subdebate-99-46} #### Spanish...... 2,692 {:#subdebate-99-47} #### Department of Foreign Affairs: Consultants (Question No. 5813) What academics has his Department used as consultants in the last 3 years and what have they been paid. >In the last 3 years the following academics have been used as consultants for aid programmes in the indicated countries and have been paid the amounts shown. {:#subdebate-99-48} #### Indonesia - {:#subdebate-99-49} #### Professor R. V. S. Bain . . 5,980 {:#subdebate-99-50} #### Dr A. M. Kerr .. .. .. 1,811 {:#subdebate-99-51} #### Mr P. Harrison .. .. .. 315 {:#subdebate-99-52} #### Nepal - {:#subdebate-99-53} #### Professor J. D. Ovington .. .. 670 {:#subdebate-99-54} #### Vietnam - {:#subdebate-99-55} #### Dr G. Fox .. .. .. 660 {:#subdebate-99-56} #### Singapore) - {:#subdebate-99-57} #### Dr Strausse . . 1,000 {:#subdebate-99-58} #### Professor Stephensen . . 1,500 {:#subdebate-99-59} #### British Solomon Islands Protectorate - {:#subdebate-99-60} #### Mr H. G. Osborne .. 530 {:#subdebate-99-61} #### Western Samoa - {:#subdebate-99-62} #### Mr P. Harrison .. .. .. 770 {:#subdebate-99-63} #### Laos - {:#subdebate-99-64} #### Professor J. D. Ovington . . 1,819 {:#subdebate-99-65} #### Mr D. Forrest . . 494 In December 1971 the Commonwealth agreed to contribute to the cost of a survey of the attitudes of overseas sponsored and private students in Australia. This survey is being conducted by the Education Research Unit of the Australian National University as part of a multi-national project organised by the United Nations Institute for Training and Research. The fees to be paid to the Research Fellow, **Mr D.** S. Anderson, to cover his costs and those of his assistants over the 3 year period 1972-74 will amount to $24,000. In addition, a number of academics have carried out assignments in a consultant capacity under the Australian-Asian Universities Cooperation Scheme. Only one of these has received payment from my Department in the form of salary or fee or this consultant work. This is the Scheme's Academic Director, Emeritus Professor H. C. Forster, who has been paid a salary on a part-time basis at the rate of $2,500 per annum form 17th September 1970 and $5,000 per annum from 1st April 1971. The assignments of the other academics were all for a month or less. Their Universities continued to pay their salaries without charge, and the only cost to the Scheme was for payment of normal travel expenses on assignment. These academics included the following: Professor J. F. Turner, **Dr J.** R. Angel, Professor R. A. Edwards, Professor G. L. McClymont, Professor D. C. Blood, **Dr D.** B. Williams, Professor E. J. Britten, Professor R. S. Campbell, Professor C. M. Donald, Professor E. J. Underwood, Professor J. D. Ovington, **Dr L.** T. Carron, **Dr D.** H. Penny. My Department has met travelling costs, including air fares, for **Mr D.** Baker, Professor C. A. Hughes, Professor J. D. Legge, **Mr J.** A. C. Mackie and **Mr J.** A. Ryan, academics who have been involved in the inauguration of the course of Australian Studies at Nanyang University, Singapore. An Editorial Advisory Board, appointed in December 1970 to advise me concerning the publication of documents on Australian Foreign Policy, consists of Professor *J.* D. B. Miller **(Chairman), Emeritus Professor Sir Keith Hancock, K.B.E., F.B.A., Professor J. La Nauze, Emeritus Professor N. Harper, Professor G. Greenwood, Professor J. Ward and Dr R. O'Neill.** The Chairman of the Board, who is available for consultation throughout the year, is paid an annual fee of $1,300. The other members, in addition to travelling allowances for those not domiciled in Canberra, are paid a sitting fee of $20 per day for meetings of less than three hours, and $40 per day for meetings of more than three hours. The Chairman is not paid a sitting fee. {:#subdebate-99-66} #### Employment (Question No. 5817) {: type="1" start="1"} 0. What was the (a) number and (b) percentage of people registered as unemployed in (i) metropolitan areas (ii) non-metropolitan areas and (iii) total in (A) each State and Territory and (B) the Commonwealth in (I) March 1972 and (II) March 1971. 1. By what (a) number and (b) percentage did unemployment in March 1972 increase or decrease in comparison with March 1971 in each case. 2. How many people in March 1972 in each State and Territory were receiving employment under (a) the Commonwealth's rural unemployment relief scheme <b) special grants to the States for relieving unemployment in urban areas and (c) both unemployment relief schemes as at the time when the number of unemployed was calculated for that month. 3. What would have been the total number of people unemployed in (a) metropolitan areas (b) non-metropolitan areas and (c) both areas in March 1972 in (i) each State and Territory and (ii) the Commonwealth if the number of people receiving employment under these schemes had been added to the number of people registered as unemployed. 4. What percentages are constituted by comparing the figures provided in answer to part (3) with the figures provided in answer to part (4). TABLE I {: type="a" start="a"} 0. Includes the Australian Capital Territory. (b) Includes the Northern Territory. 2. The increases or decreases in the numbers registered as unemployed between March 1971 and March 1972 and percentage variations are shown below. ABSOLUTE AND PERCENTAGE INCREASES UN UNEMPLOYED BETWEEN MARCH 1971 AND MARCH 1972 {: type="a" start="b"} 0. Includes the Northern Territory. {: type="1" start="3"} 0. The number of persons employed under the Commonwealth Rural Unemployment Relief Scheme at end-March 1972 are shown below. The Commonwealth does not provide comparable grants to the States for relieving unemployment in urban areas. {: .page-start } page 182 {:#debate-100} ### NUMBER OF PERSONS EMPLOYED AT END-MARCH, 1972 UNDER COMMONWEALTH RURAL UNEMPLOYMENT RELIEF SCHEME {:#subdebate-100-0} #### State {:#subdebate-100-1} #### Number New South Wales(a) {:#subdebate-100-2} #### Victoria {:#subdebate-100-3} #### Queensland South Australia(b) . . {:#subdebate-100-4} #### Western Australia . , {:#subdebate-100-5} #### Tasmania {:#subdebate-100-6} #### Australia 4,300 2,704 2,618 1,233 927 810 12,592 not bad their noise levels measured in accordance with the United States FAA/FAR 36. Hence I am unable to supply the noise levels requested for those two aircraft. However, noise levels for the remaining aircraft mentioned by the honourable member are available and these are quoted below: >Noise levels Rt FAA/FAR 36 measuring points (EPNdB) {: type="a" start="a"} 0. Includes the Australian Capital Territory, (b) Includes the Northern Territory. {: type="1" start="4"} 0. and (5) The arithmetic suggested in the question would only yield a hypothetical answer. It is not possible to determine what the total number of unemployed would have been in any of the areas referred to in the absence of the Commonwealth Rural Unemployment Relief Scheme. {:#subdebate-100-7} #### Aircraft: Noise Levels (Question No. 5858) >Will the Minister state (a) the take off, landing and sideline noise levels as measured in accordance with the United States Federal Aviation Administration Federal Aviation Regulation part 36 (FAA/FAR 36) in Effective Preceived Noise Decibles for the (I) Boeing 747 (late model) (II) Boeing 707-320 (III) DC-10 (IV) Lockheed Tristar (V) Concorde preproduction model and (VI) Concorde production model (projections), (b) the noise certification standards to operate after 1975 under FAA/FAR 36 for (1) subsonic aircraft and (ID the Concorde, and those that would apply to a subsonic aircraft of similar weight to the Concorde, (c) whether modifications have been foreshadowed for aircraft which exceed these standards to bring them below the proposed limits and (d) whether the aerodynamics of supersonic flight prevent the use of high bypass ratio turbofan engines, with their low noise potential, because of the need to reduce drag, and thus, that the prospects of substantial reduction in the Concorde's noise levels are remote. {: type="a" start="a"} 0. It is understood that the Boeing 707-320 and Concorde preproduction model aircraft have Aircraft type Ap- Take-ofi proach Sideline {: type="a" start="i"} 0. Boeing 747-200B (latest type).. {: type="i" start="ii"} 0. Douglas DC-10-10 1. Lockheed 101 1 Tristar . . fivl Concorde (Production Model Projections) . . The noise figures quoted have been rounded off to the nearest EPNdB and in the case of the Concorde, since the figures are projected, one may expect small variations up or down. {: type="i" start="b"} 0. (i) There are no known plans to change the present FAA/FAR 36 noise certification standards which, incidentally, only apply to subsonic transport category aircraft. Consequently it is anticipated at this time that the present FAA/ FAR 36 standards will still be applicable after 1975. 1. At this stage there is no noise certification standards for supersonic transports and I cannot anticipate whether such standards would be developed by 1975, and if so, what they would be. If the current FAA/FAR 36 noise standards are still applicable in 1975, the noise limits that would apply to a newly certificated four engine subsonic aircraft of similar weight to the Concorde would be: Take-off - 104.7 EPNdB Side-line - 106.6 EPNdB Approach - 106.6 EPNdB assuming an all-up-weight of 376,000 lb. {: type="a" start="c"} 0. Considerable research and development work is in hand in the USA to investigate the feasibility of modifications to reduce noise in existing aircraft which now produce noise in excess of the FAA/FAR 36 noise limits. Insufficient work has been done at this time to indicate whether satisfactory modifications, both from the noise reduction and economic standpoints, can be developed. 1. At the present stage of technical development long range supersonic transport aircraft are only economically viable when employing comparatively slender forms for wings, body and engine nacelles which characteristically Tequire proportionally higher thrust levels for take-off. Furthermore, the requirements for supersonic flight also require proportionately greater installed thrust than in the subsonic aircraft. The need to provide high thrust in small frontal area leads to the use of reheat for take-off, and transonic acceleration, and to relatively high jet efflux velocities, and makes large diameter high by-pass ratio turbofan engines quite inappropriate at this time. The prospects, therefore of substantial reduction in the Concorde's noise levels by using high by-pass ration turbofan engines instead of the existing pure turbojet engines is indeed remote. {:#subdebate-100-8} #### Concorde Aircraft (Question No. 5860) {: type="1" start="1"} 0. Was the Concorde designed primarily for operations across the North Atlantic. 1. ls it a fact that early models cannot fly from European cities, e.g. Paris and Hamburg, to New York with a full payload. 2. ls the distance from Sydney to Singapore greater than the routes mentioned. 3. If so, is it a fact that Qantas could not operate the Concorde from Sydney to Singapore with a full payload. {: type="1" start="1"} 0. Yes. 1. Manufacturers' objectives were originally to curry a guaranteed 20,000 lb payload on early models from London to New York and this later was extended lo Paris to New York. Manufacturers are confident of achieving these objectives. 2. Yes. 3. The model planned for Qantas is expected lo achieve a payload of at least 15,000 lb for the Sydney io Singapore operation. Anti-pollution Devices (Question No. 5868) {: type="1" start="1"} 0. Were tests of the McWade Emission Control Unit, or anti-pollution device for motor vehicles, carried out by **Dr Deslandes** and **Dr Watson** of Melbourne University for CSIRO? 1. If so (a) what were the conclusions reached by these researchers, (b) has the CSIRO taken into account, in its examination of this unit, tests conducted by Professor J. Tindall of the University of New South Wales; if not, why not and (c) has any further work been carried out by the CSIRO on the unit or is any further work projected? {: type="1" start="1"} 0. At the request of the then Prime Minister. CSIRO in early 1971 arranged for limited tests to be made by **Dr H.** C. Watson of Melbourne University on 2 anti-pollution devices. One of these devices was the McWade Emission Control Unit. 1. (a) **Dr H.** C. Watson concluded that the McWade Unit reduced carbon monoxide emission by 33 per cent and nitrogen oxides by about 10 per cent. The tests were made on only one vehicle and on one McWade Emission Control Unit. These effects are very much less than (hose required to give a long-term solution to the problem of atmospheric pollution by vehicles, for which reductions of about 90 per cent are generally considered necessary. If an immediate shortterm control of pollution from the motor car is sought **Dr Watson** has pointed out that overseas tests in the United Kingdom and the United States of America have shown that reductions of up to 20 per cent in hydrocarbons and up to 50 per cent in carbon monoxide can be achieved by simple routine engineering maintenance, such as attention lo spark plugs, ignition timing, and carburettor adjustment. {: type="a" start="b"} 0. No. Details of the tests made by Professor J. Tindall were not made available to CSIRO. 1. CSIRO has not carried out any further investigations on this unit nor are any further tests proposed. It is understood that the State Government of New South Wales is proposing to establish a testing' facility for the controlled measurement of vehicle emissions, and CSIRO does not consider it necessary or desirable that such a facility should be duplicated. {:#subdebate-100-9} #### Primary Industry (Question No. 5869) {: type="1" start="1"} 0. What are the activities, other than sheep research, to which he referred on 17th May 1972 in relation to CSIRO research into primary industry problems and which he said would be reorganised. 1. What is the nature of the re-organisation and what cutbacks are involved in staff and finance. 2. How many research officers engaged in primary industry research (a) were there in 1969- 70 and 1970-71 and (b) are there in 1971-72 and what percentage of the total research officer complement do they represent for each of those years. {: type="1" start="1"} 0. The research programme of CSIRO is never static, but develops continuously. The reorganisations I referred to on 17th May in activities other than sheep research are largely the result of this continuous development. However, some of these changes have been accelerated by alterations in the pattern of availability of funds from the various sources. There have been increases in activities in beef production, crops (particularly in the development of new crop opportunities) and environmental problems related to primary industry such as studies of increased salinity resulting from altered land use. These increases are in keeping with changes in the market opportunities for rural products and the redevelopment of special industry problems. {: type="1" start="2"} 0. The re-organisation has been almost entirely a re-allocation of staff to projects of greater immediate importance within similar scientific fields. There has been no reduction in total staff or finance. 1. The number of research officers engaged in primary industry research in CSIRO in 1969-70 was 553 representing 54 per cent of the total research officer complement for that year. The corresponding figures for 1970-71 are 590 and 56 per cent respectively and for 1971-72, 591 and 54 per cent respectively. {:#subdebate-100-10} #### Dental Services (Question No. 5912) >Has any costing yet been undertaken on the proposals by the Australian Dental Association in August 1968 for (a) a Division of Public Dental Health within his Department, (b) forward planning, through the Universities Commission, for dental education and (c) dental services for preschool and school children (Hansard, 19th August 1970, page 232 and 25th November 1971, page 3768). {: .page-start } page 184 {:#debate-101} ### No {:#subdebate-101-0} #### Parking Inspectors (Question No. 5917) {: type="1" start="1"} 0. Are parking inspectors in the Australian Capital Territory employed by the Public Service Board, whereas in New South Wales they are officers or employees of the Police Department. 1. What are the reasons which justify parking inspectors in the A.C.T. not being members of the Police Force or made special constables. 2. What is the stipulated number of parking inspectors calculated as being sufficient to serve Canberra's needs. 3. What is the present number of parking inspectors. 4. What turnover of parking inspectors has occurred during each year since parking inspectors were first employed. 5. How many have resigned during each year. 6. What reasons were given for those resignations. 7. Is it a fact that there have been a number of complaints from parking inspectors describing poor working conditions and abuse by the public. 8. If so, what steps have been taken to satisfy these complaints. 9. Are there any opportunities for overtime to be earned by parking inspectors; if so, what was the total overtime worked during the last 12 months. 10. Have requests been made by parking inspectors to be sworn in as special constables so that they are able to overcome some of the difficulties of their employment. 11. Have these requests been refused; if so, why. {: type="1" start="1"} 0. and (2) Parking inspectors in the Australian Capital Territory are officers of the Department of the Interior employed under the Public Service Act. It is not common today for parking inspectors to be members of police forces in Australia nor is it the practice for inspectors appointed under Australian Capital Territory Ordinances to be made special constables. 1. and (4) The establishment for parking inspectors is 10 and 4 are employed at present. A further 6 have been recruited and are to commence duty during the next week or so. 2. to (9) Parking inspectors have had several discussions with their supervisors about working conditions and abuse by the public, and every effort has been made to overcome the cause for complaint. A member of the public was recently prosecuted successfully for striking an inspector. The salary, the attitude of the public and prospects of promotion affect the resignation rate. The table below shows the turnover rate and resignations of inspectors. 3. During the last 12 months 832 man hours of overtime have been worked by parking inspectors. 4. and (12) No parking inspector has made a request to the Department to be sworn in as a special constable. {:#subdebate-101-1} #### Treasury: Financial Institutions Division (Question No. 5920) {: type="1" start="1"} 0. What are the functions of the Financial Institutions Division of his Department. 1. Does the Division exercise any supervision or control over the non-life insurance business of companies, which also undertake life insurance business, through the obligation of those companies to lodge bonds for the life insurance business they undertake; if so, what control is exercised. {: type="1" start="1"} 0. The Financial Institutions Division of the Treasury comprises 2 Branches, the Banking and Insurance Branch and the Private Sector Transactions Branch. The Banking and Insurance Branch comprises the following 2 Sections: {: type="a" start="a"} 0. the Banking Section, which advises on banking legislation and on administration of the Banking Act 1959-1967, the Reserve Bank Act 1959-1966, the Commonwealth Banks Act 1959-1966, the Banks (Shareholdings) Act 1972 and the Currency Act 1965; and 1. the Insurance Section, which advices on policy issues concerning general insurance and life insurance; it also attends to administration of the Insurance Act 1932- 1966 and to certain functions connected with the deposit provisions of the Life Insurance Act 1945-1965. The Private Sector Transactions Branch comprises the following 2 Sections: {: type="a" start="a"} 0. the Overseas Transactions Section, which advises on policy issues relating to exchange control, export insurance and export finance; and 1. the Companies Finances Section, which advises on certain aspects of overseas investment in Australia and on borrowing in Australia by overseas interest; it also advises on matters relating to the private securities markets and on aspects of company law. {: type="1" start="2"} 0. A company which carries on non-life insurance business in addition to its life insurance business is subject to the provisions of the Insurance Act 1932-1966 as well as to those of the Life Insurance Act 1945-1965. Such a company is required to lodged approved securities with the Treasurer to comply with the deposit provisions of each of those Acts. Companies carrying on insurance business within the meaning of the Insurance Act 1932-1966, which have not lodged the maximum deposit, are also required lo furnish to the Treasurer annual returns of premium income. As mentioned in (1) the Financial Institutions Division attends to certain functions connected with the deposit provisions of the Life Insurance Act 1945-1965. However, these functions are confined to the issue, recording and safe-keeping of certificates in respect of securities lodged with the Treasurer as deposits under the Act. {:#subdebate-101-2} #### Airports: Bars (Question No. 5922) {: type="1" start="1"} 0. What procedures are followed in choosing the lessee to operate the Backbenchers Bar at the Canberra Airport. 1. Are the procedures the same as the procedures followed in selecting the lessees of similar bars in other aerodromes throughout Australia; if not, in what way are the various procedures different. 2. Is it a fact that the prices charged for alcoholic liquors in airport bars are greatly in excess of prices charged elsewhere. 3. If so, (a) can the Minister indicate the reason for these excessively high prices and (b) are the high prices related to the rent that is paid by the lessee to the Commonwealth. 4. What is the area in square feet et the Backbenchers Bar at Canberra Airport. 5. What is the rent paid for the area. 6. Can the Minister say how the rent compares with the rent paid for other comparable premises in Canberra. 7. If the procedures for the allocation of a lease take into account offers by prospective lessees to pay rent and a policy of the Commonwealth to give a lease to the person offering to pay the highest rent and if this high icnt is a reason for the high prices, will the Minister take steps to have this policy and practice discontinued so that the Commonwealth ceases to play a part in the exploitation of persons who travel by air and use Commonwealth aerodromes. {: type="1" start="1"} 0. Public tenders were invited in October 1967. 1. Yes the procedures are similar. 2. The authority granted to the concessionaire specifically requires that prices for liquor and other goods sold shall not exceed those charged for similar commodities in like premises in the city of Canberra. Airport prices arc subject to periodic Departmental checks but, in view of your question, a further special check will be made. 3. Previous checks have not shown the prices to be excessive. Labour costs are high at airport concessions because the operator is required to service the needs of the air -travelling public which at times can mean long hours. Nevertheless prices are required to be fair as stated in my previous reply. Prices are not related to the rents paid to the Commonwealth. Tenderers calculate their own total rents and these are formed in the knowledge of the contract requirements of the Department which are set out in the lender schedule. 4. and (6) The area of the Backbenchers Bar is approximately 700 square feet. This is about half the complete concession area for which the total monthly rent is $200 a month. In addition, the concessionaire tendered to pay a percentage of gross sales for his authority to trade under the Airports (Business Concessions) Act. 5. This information is not held by the Department. In any case, trading circumstances are different at airports where most of the business is generated by the airlines and the Commonwealth which provides the airport facilities. 6. The Department is not aware that high prices are being charged. As stated previously, this will be investigated and corrective action taken if necessary. High rents should not cause high airport prices. Price levels are set in the tender schedules prior to tenderers deciding the amount they will bid. There is no compulsion on anyone to tender and, of course, there is no compulsion on anyone to drink in the airport cocktail lounge. In accordance with the public tendering system, concession contracts are normally granted to the highest suitable tenderer but the latter must contract to comply with the Departmental terms specified in the tender schedule before being granted the concession rights. Car Accidents in Australian Capital Territory (Question No. 5923) **Mr Enderby** asked the Minister for the Interior, upon notice: {: type="1" start="1"} 0. In the list of ten intersections in Canberra where the greatest number of accidents occurred in each of the years 1969 and 1970, how many accidents occurred at each of those intersections (question No. 5152, Hansard, 22nd March 1972, pages 1071-3). 1. How many accidents have occurred at the Jerrabomberra Avenue and . Hindmarsh Drive intersection (a) in each year and (b) in total since the intersection was constructed. {: type="1" start="1"} 0. 1969 Canberra Avenue/Ipswich {:#subdebate-101-3} #### Street . . . . . . 36 Constitution Avenue/Coran- derrk Street . . 35 Limestone Avenue/Ipima Street 36 Northborne Avenue/Alinga Street 82 Northborne Avenue/ Antill Street ..50 Northborne A venue/ Barry Drive 57 Northborne Avenue/London Circuit .. ..57 Northborne Avenue/MacArthur {:#subdebate-101-4} #### Avenue . . 76 Northborne Avenue/ Rudd {:#subdebate-101-5} #### Street .. .. ..37 State Circle/Commonwealth Avenue . . 60 1970 Canberra Avenue/Ipswich {:#subdebate-101-6} #### Street ..41 King Edward Terrace/ Langton Street .. ..35 Kings Avenue/Parkes Way (roundabout) 47 Limestone Avenue/Wakefield {:#subdebate-101-7} #### Avenue . . 41 Northborne Avenue/ Alinga {:#subdebate-101-8} #### Street . . 89 Northborne Avenue/AntiU Street 48 Northborne Avenue/Barry Drive 45 Northborne Avenue/Ipima Street 45 Northborne Avenue/'London Circuit . . 57 Northborne Avenue/MacArthur {:#subdebate-101-9} #### Avenue . . 73 {: type="1" start="2"} 0. The number of accidents that occurred at the intersection of Jerrabomberra Avenue and Hindmarsh Drive prior to 1969 is not known. The number of accidents recorded at the intersection are: 1969 .. ..26 1970 .. ..21 1971 .. ..38 1972 .. .. 12 (to the end of March- preliminary figure only) {:#subdebate-101-10} #### Price of Bread (Question No. 5924) {: type="1" start="1"} 0. Has the price of unsliced bread in the Austialian Capital Territory increased by 7 cents since July, 1971. 1. If so, what is this increase expressed as a percentage. 2. Does the Government consider that this is a reasonable increase. 3. Why has the increase occurred and what reas&ns were given for the increase. 4. Does he have any control or influence over increases in the price of bread in the Australian Capital Territory. 5. If so, will he take steps to see that the price is not increased further. {: type="1" start="1"} 0. to (6) Since July 1971 bread producers in the Australian Capital Territory have announced two increases each of 1 cent in the price of unsliced. unwrapped bread in Canberra. These announcements have closely followed prices fixed by the Prices Commissioner in New South Wales. There are no controls over the price of bread in the Australian Capital Territory. Bread can be purchased in Canberra at a variety of prices. {:#subdebate-101-11} #### Apprentices (Question No. 5931) How many young men completed their apprenticeships with the Department of Civil Aviation during each of the last 10 years and were nol then placed as tradesmen in the Department. All young men who successfully completed apprentice trade courses with the Department of Civil Aviation in the last 10 years were placed at tradesmen within the Department. {:#subdebate-101-12} #### Aboriginal Stockmen (Question No. 5940) {: type="1" start="1"} 0. Has his attention been drawn to reports that Aboriginal stockmen have walked off Humbert River Station in the Northern Territory. 1. Is this the third walk-off by Aboriginal stockmen from Northern Territory stations, including Victoria River Downs, within a short period. 2. Are these incidents caused by a lack of decent housing and poor wages paid by the property owners; if so, will he use the powers vested in him to see that decent conditions are provided for the Aboriginal stockmen, plus wages in line with standards applicable to other stockmen. The Cattle Station Industry (Northern Territory Award) applies only to employees who are members of the North Australian Workers Union. Inspection of employment conditions for conformity with the Award is the responsibility of the Minister for Labour and National Service. The Report of the Gibb Committee which was tabled in the Parliament on 25th May contains recommendations on conditions of employment of Aborigines in the pastoral industry together with other recommendations on improving the social and economic conditions under which Aborigines on pastoral properties now live. The Government's decisions on the major recommendations of the Gibb Committee Report were announced on 2nd June. {:#subdebate-101-13} #### Price of Land (Question No. 5941) {: type="1" start="1"} 0. What principles determine (a) the value and (b) the reserve price of a block of land that is to be sold by. the Department of the Interior at auction in Canberra. 1. Do reserve prices differ from the values determined for land to be sold at auction; if so, in what way do they differ. 2. By what sum have the prices paid for land sold by auction during the last 2 years exceeded the values placed on that land. 3. Does the Government make a profit from the sale of land in Canberra. 4. If so, (a) how much profit was made in each of the last 5 years and (b) what was the profit expressed as a percentage of the cost of servicing the land. {: type="1" start="1"} 0. (a) Value placed on residential land by the Commonwealth is the assessed value for rating purposes. This amount is currently determined using standard valuation principles and in accordance with a formula prescribed in the Rates Ordinance. The value is currently determined as at 1st January 1970. {: type="a" start="b"} 0. The reserve price of a residential lease is determined: by calculating the average contract price and acquisition costs incurred in making land available for lease in the most recently, developed suburbs. the average cost is divided by the total number of revenue producing acres in the area concerned to obtain an average cost per revenue producing acre. e the cost per acre is divided by the average rating value per acre. This produces a factor, o the rating value of each individual residential lease is then multiplied by the factor to give a reserve price. The resultant reserve price therefore takes account of differences in quality of land. It provides a range of prices for residential leases while still ensuring that the overall cost of land development is returned to the Commonwealth. The reserve prices for business leases are set at 73 per cent of the current market value of the lease or the cost of making the land available for lease, whichever is the greater. {: type="1" start="2"} 0. Yes. See answer to Question (1). 1. The Department keeps no record of this as up to date values are not assessed for residential leases and any figures obtained which combined current market and rating values would not be meaningful. 2. and (5) No. Total costs including past land development costs in Canberra have not yet been recovered. {:#subdebate-101-14} #### Bank Interest (Question No. 5942) {: type="1" start="1"} 0. Has the standard interest rate proposed by the Reserve Bank in their interest rate structure for moneys borrowed for investment in property been 9.2S per cent, for some years. 1. Has interest at the rate of 71 per cent been adopted as the norm in the determination of a fair rent for premises in the Australian Capital Territory. 2. Why has 7i per cent been chosen for use in fair rent applications instead of 9.25 per cent. {: type="1" start="1"} 0. From inquiries I have made I understand that the interest rate of 9.25 per cent referred to by the honourable member applied to what is known as 'bridging' finance. If further information is required I suggest that the question be directed to the Treasurer. 1. Yes. 2. In determining a fair rent under the Australian Capital Territory Landlord and Tenant Ordinance the Rent Controller is required by section 20 to have regard to the rate of interest charged upon overdrafts by the Commonwealth Bank. The Controller has done this and as a result has adopted an interest rate of 7i per cent. A landlord or tenant may appeal to a Fair Rents Board against a determination made by the Controller.

Cite as: Australia, House of Representatives, Debates, 15 August 1972, viewed 22 October 2017, <http://historichansard.net/hofreps/1972/19720815_reps_27_hor79/>.

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