View PDF View XML View in Voyant

Senate
28 August 1925

9^th Parliament · 3^rd Session

QUESTION
- POSTMASTER-GENERAL’S DEPARTMENT
COMMONWEALTH RAILWAYS BILL
CANADIAN PREFERENCE
DISTILLATION BILL
- Second Reading
COMMONWEALTH BANK (RURAL CREDITS) BILL
- Second Reading
QUESTION
- ESTIMATES AND BUDGET PAPERS, 1925-26
SPECIAL ADJOURNMENT
- Strike of British Seamen - Immigration Restriction Act - Appointment of Peace Officers

The President (Senator the Hon. T. Givens) took the chair at 11 a.m., and read prayers.

page 1821

QUESTION

POSTMASTER-GENERAL’S DEPARTMENT

Basic Wage in South Australia.

Senator McHUGH:
through Senator Needham

asked the Minister representing the Postmaster-General, upon notice -

What is the present basic wage in Adelaide, based upon the harvester standard, plus the 6d. added by the Commonwealth Court?
Is it the policy of the Government to pay for all work done in Adelaide at least such basic rate, whether or not the men concerned are governed by an award of the Commonwealth Court?
Is itnot a fact that men employed in the laying of underground telephone wires have a lower basic rate?
Does the Minister know whether the rate of 13s.8d. per day paid on such work is 7d. per day below the declared living wage as decided by the South Australian Board of Industry?
Is it the policy of the Government that its employees in any State should be on a wage below the State wage standard?
If not, will the Government institute immediate inquiries, and, if found that the men are paid rates below such standard, will their wages be brought up to such standard.

Senator CRAWFORD:
Honorary Minister · QUEENSLAND · NAT

– The PostmasterGeneral has supplied the following answers to the honorable senator’s questions : -

14s.5d. per day as from 13th August, 1925.
Yes.
No.
The new basic wage of 14s. 5d. is being paid as from 13th August, 1925.
No.
See answer to No. 4.

page 1821

COMMONWEALTH RAILWAYS BILL

Bill read a third time.

page 1821

CANADIAN PREFERENCE

Senator WILSON:
Minister for Markets and Migration · South AustraliaMinister for Markets and Migration · NAT

– I move -

That the preamble, agreement, and schedules embodying the tariff agreement with Canada, as follows, be adopted: -

That whereas in pursuance of the provisions of paragraph (a) of sub-section (31 of section 9 of the Customs Tariff 1921- 1924, the Minister of State for Trade and Customs has referred to the Tariff Board the question whether, having regard to the reciprocal benefits which have been or will be granted to Australia by the Dominion of Canada, it is desirable, in the interests of the Commonwealth, that the British Preferential Tariff in the Customs Tariff 1021-1924 or the Intermediate Tariff in the Customs Tariff 1921-1924 (hereinafter respectively referred to as “ the British preferential tariff “ and “ the intermediate tariff”) should apply to the Dominion of Canada, and, if so, the extent to which it should so apply :

And whereas the Tariff Board has reported that it is desirable, in the interests of the Commonwealth, that the British preferential tariff and the intermediate tariff should apply to the Dominion of Canada to the extent specified in this resolution :

Now therefore this Senate agrees -

) That the application to the Dominion of Canada of the British preferential tariff and the intermediate tariff in the Customs Tariff 1021-1024, or in that tariff as subsequently amended, is, to the extent specified in this resolution, desirable in the interests of the Commonwealth ;

That the British preferential tariff and the intermediate tariff respectively shall apply to the Dominion of Canada to the extent that, in lieu of the duties of Customs imposed by the Customs Tariff1921-1924, or by that tariff as subsequently amended ongoods the produce or manufacture of the Dominion of Canada, imported direct from that Dominion, there shall be imposed, on and after a time and date to be proclaimed, duties of Customs, as hereinafter set out, on the undermentioned goods the produce or manufacture of the Dominion of Canada, imported direct from the said Dominion, namely: -

On goods described in the First Schedule to this resolution the rates of duty shall be the rates of duty for the time being applicable to goods to which the British preferential tariff in the Customs Tariff 1921-1924, or in that tariff as subsequently amended applies; and

) On the goods described in the

Second Schedule to this resolution the rates of dutyshall be the rates of duty for the time being applicable to goods to which the intermediate tariff in the Customs Tariff 1921-1924, or in that tariff as subsequently amended applies:

I am very pleased that we are at last reaching finality in this matter.. Last year I had the privilege of visiting Canada on behalf of the Commonwealth, and after many interviews with members

Senator WILSON:

– Any items embodied in this agreement subject to the British preferential tariff would, in the event of an amended tariff, be altered pro rata. As honorable senators are aware, it is somewhat difficult for me to give off hand all the information in detail which may be desired, but if any further particulars are required on any specific item I shall be pleased to supply them. I do not wish this motion to be rushed through the Senate, but I trust honorable senators will give it prompt attention to enable a decision to be reached.

Debate (on motion by Senator Needham) adjourned.

page 1825

DISTILLATION BILL

Second Reading

Debate resumed from 27th August (vide page 1734) on motion by Senator Wilson -

That the bill be now read a second time.

Senator NEEDHAM:
Western Australia

– This is a simple machinery measure to govern the conditions under which proof spirit is handled. Section 40 of the Distillation Act reads -

No entry authorizing the- removal of spirits shall be passed in respect of spirits of a lower strength than 25 per centum underproof, nor in respect of a smaller quantity than 10 gallons.

When the principal act was passed, all the states had not passed legislation bearing on this particular subject, and although food and drugs acts have now been passed by the state governments they are not uniform. I understand it is desired to bring our provisions as to the supervision and strength of spirits into line with the pure food laws of the states. That being so, I see no reason why the passage of the bill should be delayed.

Senator J GRANT:
NEW SOUTH WALES · ALP

– I always take advantage of opportunities such as this to place upon record my strongest possible condemnation of the actions of those who at present are controlling the beer and spirit trade in the Commonwealth. Their action in systematically and continuously reducing the strength ,of beer and spirits should engage the attention of all those who consume these beverages. The beer once brewed by most of the breweries was an excellent product.

The PRESIDENT (Senator the Hon T Givens:
QUEENSLAND

– There is no reference in the bill to brewing. The honorable senator will be quite in order in referring to the distillation of spirit.

Senator GRANT:
NEW SOUTH WALES · ALP

– This is a measure which has a bearing on the drink traffic.

The PRESIDENT:

– Only on one phase of it.

Senator GRANT:
NEW SOUTH WALES · ALP

– The beer-producing section of the trade is a particularly important one.

The PRESIDENT:

– I do not doubt its importance, but I cannot admit its relevance to the question before the chair.

Senator GRANT:
NEW SOUTH WALES · ALP

– The practice <f some people is to commence with shandies, and later to take to beer, whisky, and then rum. Having got to that stage, they commence de novo-

The PRESIDENT (Senator the Hon T Givens:

– Order! The honorable senator is not in order in discussing that matter. .

Senator J GRANT:
NEW SOUTH WALES · ALP

– Very well, Mr. President, I shall deal with spirits. This is really a matter of vital importance. Year after year those who are directly concerned in the drink trade persistently advocate, ostensibly in the public interest, but actually in their own, a reduction in the strength of spirits, so that they may make a greater profit out of the unsuspecting public. When a person spends money on spirits he is entitled to get the genuine article. The quality may be good enough, but, unfortunately, the strength has been materially reduced.

Senator Gardiner:

– Does the honorable senator suggest that spirits are too weak or too scarce ?

Senator J GRANT:
NEW SOUTH WALES · ALP

– Both too weak and too scarce. I object also to the enormous duty. I should like to see the bill extended to deal with this question. I suppose I am correct in saying that it costs only about 3s. to produce a gallon of ordinary Queensland rum, but. no doubt the producers add 100 per cent, for their profit, and when the excise duty is paid, 1 think the price is about 24s. a gallon. The purchaser does not get much for his money, but makes a substantial contribution to the Commonwealth revenue. The bill ought to be withdrawn and a comprehensive measure, dealing with the manufacture and sale of spirits, introduced. There would then be some chance of people who purchase spirits getting something like the real article.

Question resolved in the affirmative.

Bill read a second time, and reported from committee without amendment or debate.

Report adopted.

page 1826

COMMONWEALTH BANK (RURAL CREDITS) BILL

Second Reading

Senator PEARCE:
Minister of Home and Territories · Western AustraliaMinister for Home and’ Territories · NAT

– I move -

That the bill be now read a second time.

This is a further instalment of legislation to widen the scope and influence of the Commonwealth Bank. Honorable senators will recall that last year the Government passed a bill to make the bank essentially a national institution and to convert it into a bank of issue, discount, reserve, and exchange. Criticism of that : measure by financial authorities, not only in Australia, but also in other countries, showed that the proposal was generally commended as an important step forward in the history of the bank. It is now proposed to further extend its usefulness to the community by establishing a rural credits department to assist the organized producers in the Commonwealth to control their produce until the time of its sale and distribution.. One of the greatest disabilities suffered by our producers hitherto has been the absence of this assistance. As a consequence, a large number of profit- takers have been permitted to interpose between the producer and the consumer and to levy toll upon both without conferring any material benefit on the community. The bill proposes to get over this difficulty. Under it consumers may, if they wish, build up a reservoir of the necessaries of life, and regulate their distribution at an even volume of pressure throughout the year, thus avoiding high prices on the one hand, and depression of values on the other. Another important feature of the bill is that the Government will not operate the machinery. It will be a matter entirely between the bank and its organized customers.. The time has arrived when the financing of our primary producers in respect of their wool, grain,. butter, cheese, fresh preserved or dried fruits, hops, cotton, sugar, and other products should be- placed on a definite basis. In this way wa may hope to avoid those frequent appeals to state and Commonwealth governments for assistance to tide producers over periods of stress. The important part which primary production plays in the economic life of the community is shown by figures which disclose that last year primary production amounted to nearly three-quarters of the total production of Australia, namely, £270,670,000, out of a total value of £382,208,000. In other words, primary products constituted 96 per cent. of the exports from Australia. The establishment of a rural credits department will make for the orderly marketing of Australian primary production, as is done in other countries which are Australia’s keenest competitors in the markets of the world. Failure to provide such assistance will seriously handicap our producers in. their competition with those countries. Last year Parliament passed certain measures introduced by the Government for the more orderly marketing of our primary products. I may be permitted’ to give the list. There was the Dairy Produce Export Control Act ; the Expert Guarantee Act, which provides for advances being made by the Commonwealth Bank up to 80 per cent. of the market value of butter and cheese under the control of the Dairy Produce Export Control Board; the Dried Fruits Export Control Act, and the Dried Fruits Advances Act. To ensure the permanent value of this legislation, and to extend its benefits to all primary industries, some changes are needed in our financial system to support the work which has been done. The need for the orderly regulation and marketing of our primary products should be frankly recognized, and every effort should be made to provide the necessary financial machinery. Existing banking facilities must be adjusted, if necessary, with that end in view. The Government does not propose to interfere with their legitimate work. On the other hand it will endeavour to give encouragement and bring about coordination, thus making it possible at all times for co-operative marketing associations to obtain funds adequate for their operation in the direction of orderly marketing; by providing: the necessary machinery to make financial assistance applicable to the essential requirements of agriculture. Under our existing lack of system, itisfrequently found that the productionof abumper croprenders its financing extremely difficult. Take ourexperience last year. There wasan exceedingly good wool clip and an expectation of big prices being realized; but that very fact tended to generate in thecommunity a condition offear and a lack of confidence, which was overcome eventually only by the prompt action of the directors of the Commonwealth Bank in making advances to the associated banks to enable them to finance the industry. Honorable senators will remember that numerous questions were asked in this chamber last year regarding the methods that were to be adopted to meet the situation that had arisen. They were prompted by the fear which existed outside that the ordinary financial institutions would not be able to provide meanswhereby advantage could be taken ofthe naturalblessings thathad been conferred upon the Commonwealth.

Senator Reid:

– If the brokers had not killed Bawra, that situation would not have arisen.

SenatorPEARCE.- Upon that question there is a difference of opinion. Every one must agree, however, that the importance of agriculture and other primary industries entitles them to financial facilitiesas great as those that are employed in connexion with any other industry orcalling. That primary production is not in such a positionat the present time is proved by the creation, from time to time, of pools for the marketing of different products, so that a certain degree of orderly and regular marketing will be brought about. Invariably, those poolshave found it necessary toapproach the Government for a guaranteebefore the financial institutions wouldundertake ihe responsibility of making available the necessary finance. By anorganized systemof production and finance, Denmark can supply her English customers throughoutthe year. Thatfact, in conjunction with a uniform standard of quality, makes it easierand cheaper for the merchant to handle Danish butter than butter from any other country. The result is seen in the difference between the price of Australian andDanish butter on theEnglish market. Last year, the Government acted on this definiteprinciple in itsexportcontrol legislation,whichplacedthecontrol of the exportable surplus inthe hands of the industry itself, ifit thought fit to organize. To enable this principletobe applied generallyto industry, it is necessary to make available machinery by which organized industry can automaticallysecure the necessary finance on a commercial basis. The Government believes that this can be done by an examination of the claims of the various industries on theirmerits, by an Imperial commercial institution thatwill not beguided by any political consideration. Ithas to be rememberedthat the general credit of the Commonwealth is behind the Commonwealth Bank, and will bebehind theoperations oftherural credits department, as it is behind that of every other department of theCommonwealthBank. Theoperation of this system is certain to stimulate thegrowth of co-operationamongst producers. The widely-spread benefitstothe community ofsuch co-operationhavealready been shown. The machinery provided in the bill, together with export control machinery similar to that provided last year in connexion with butter anddried fruits, will permit the producer to obtain all the advantages of a compulsory pool in relation to his exportable surplus, whilst at the sametime retaining complete control in his own hands. I shouldlike here to makea further reference toanindustry that I have already mentioned incidentally,and that I hopewill becomea great industry in Australia. It isthe cotton industry. That industryhasbeen thesubject of considerablecontroversy . It is being operated by a proprietary companyunder an agreement and in combinationwith the Stateauthorities. Wheneverdifferentinterests undertaketo dealwithone industry therearebound to bedivergencies of opinion. In this particular industry the State took certain action which it believed would be beneficial. The company which was concerned with the ginning of the cotton, and wnich assisted to financethe industry, took other action ; and an altogether different view was takenby the growers themselves. There was a great deal of controversyregarding tihe questionof ratoon cotton, the grading of cotton.,the amount of finance that was made available, and the way inwhichadvances. were forthcoming. Under this rural credit system, if the growers organize themselves on a sound financial basis they can secure financial backing to enable them to market their produce in their own way. But if a co-operative concern continues to market an inferior cotton it will have to take the responsibility of its action, and the necessities of the case will compel it to conform to the demands of the cotton markets of the world. That can be brought about much more rapidly if growers act in their own interests than if they are subjected to what they regard as foolish interference by any government. It will surely be better for the growers themselves to take action than to have it done by a government, action by which is generally misunderstood, often misinterpreted, and sometimes wrong. Instances such as that to which I have referred could be multiplied in respect of fruit and, indeed, all other produce. By the establishment of a rural credits department the Government hopes to give the producers an opportunity to cooperate and to provide the necessary financial assistance to enable them to do their own marketing. They will thus learn the lessons that must be learned in connexion with the marketing of their produce. Necessity is the mother of invention, but it is also a stern teacher. When these co-operative associations have to accept full responsibility for the marketing of their produce they will take good care that only the best methods are adopted. This will be to them a far more effective spur than any regulation or government inspection could provide. So it is hoped that whilst this proposal will confer a great benefit upon the producers it will also bring home to them in the most effective and direct way the necessity to properly market their produce. The bill provides -

That there shall be a Rural Credits Department of the Commonwealth Bank.
That the Treasurer may lend funds to the Rural Credits Department, providing that the total of the sums so lent, and not repaid, shall not, at any time, exceed £3,000,000.
That 25 per centum of the net annual profits of the Note-issue Department shall be paid into the Rural Credits Department until the amount so paid reaches a total of £2,000,000.
That for these purposes the bank may issue debentures.
That the amount of debentures issued, and not repaid, shall not, at any time, exceed - (a) the amount advanced ou primary produce by the Rural Credits Department, and still outstanding as at the date of the issue of the debentures; or (b) four times the amount of the aggregate of - (i) the sums lent by the Treasurer to the Rural Credits Department, and not repaid; (ii) moneys paid to the Rural Credits Department out of the net profits of the Note-issue Department ; and (iii) moneys at credit of the Rural Credits Department Reserve Fund, whichever is the greater.
That the bank may make advances to the Rural Credits Department, upon the security of primary produce placed under the legal control of the bank, to (a) the bank or other banks; (b) cooperative associations formed under the law of the Commonwealth, a State, or a territory under the authority of the Commonwealth; and (c) such corporations or unincorporate bodies, formed under the law of the Commonwealth, a State, or a territory. It is also provided that no advance under this part shall be made for a period of more than one year, and that, in lieu of making advances in accordance with the provisions of this part, the Rural Credits Department may discount bills secured upon produce placed under the legal control of the bank. The assets of the Rural Credits Department shall be available, firstly, for meeting the liabilities of the department, other than loans made to it by the Treasurer under this part, and interest thereon; and, secondly, for repaying those loans and paying that interest. The net profits of the Rural Credits Department shall be dealt with as follows: - (a) One-half shall be placed to the credit of a fund to be called the “ Rural Credits Department Reserve Fund,” and (b) one-half shall be placed to the credit of the Rural Credits Development Fund, to be used, in such manner as the board directs, for the promotion of primary production.

Senator Thompson:

– Losses are not anticipated ?

Senator PEARCE:

– If the act is operated with ordinary discretion I do not think that there should be any serious losses. I certainly think that the time has arrived when we should endeavour to remove these operations from the region of political action. I can think of no greater danger in our national life than that industries should be in a position to come to a government and, by political pressure, exerted perhaps at times of crises, extort from the government financial considerations that are denied to other industries. I do not say that that has been ‘done, hut, at the same time, there is always the danger of it whilst the government acts as a sort of fairy godmother in assisting industry from the funds of the taxpayers.

Senator Findley:

– Will this measure prevent the possibility of that occurring in future?

Senator PEARCE:

– I think that it will, because there will not be the same justification for government or parliament -to invade this area of finance. At any rate, that is the hope and the object of the Government in introducing the bill, which I commend to the consideration of honorable senators.

Debate (on motion by Senator Needham) adjourned.

page 1829

QUESTION

ESTIMATES AND BUDGET PAPERS, 1925-26

Debate resumed from 27th August (vide page 1754), on motion by Senator Pearce -

That the Estimates and budget-papers be printed.

Senator THOMPSON:
Queensland

– As a commercial man I should like to make a few remarks on the budget-papers. Possibly I may not submit my views in such an elaborate way as some honorable senators, but I trust that I shall make my meaning clear. The Treasurer deserves to be congratulated on having produced such a satisfactory statement of last year’s transactions. The revenue exceeded expectations, principally, of course, on account of the high Customs receipts. Some criticism has been offered on that very account, but men who move in commercial circles know of the many difficulties that surround the appraisement of Customs revenue. It will be within the knowledge of honorable senators that there was an unusual inflation of the Customs revenue during

July. Imports, generally, were said to be responsible for it, but I venture to say that it was caused principally by the anticipation of an increase in the duty on spirits. Happenings like that, which give the Customs revenue an unexpected fillip, make it very difficult for the Treasurer accurately to estimate the income. I am glad to notice that relief is proposed in indirect taxation to the extent of £750,000. The way in which that is to be done will, no doubt, be disclosed to us later.

Speaking as a member of the general public, it seems to me that three aspects of the budget will be particularly appreciated. The first is the proposed reduction in income taxation by 12£ per cent. That is highly desirable. I wish that the Queensland Government would follow the example of this Government in that respect. My private income last year was taxed three times as heavily by the Queensland Government as by the Commonwealth Government. I regret, however, that the Treasurer could not see his way clear to propose a reduction in taxation on companies. Our present companies tax is very high, and unsatisfactory. I know of one company which is paying 2s. 3d. in the £1 to the Federal Government and 3s. in the £1 to the state Government. A tax of 5s. 3d. in the £1 is altogether too heavy on this struggling company. Its profits are not sufficient, in these circumstances, to give the shareholders any return on their investment. The employees get a big cut out of the gross returns, the state and Federal Governments get a little more than 25 per cent., and the shareholders get nothing.

Senator Lynch:

– Is that a mining company ?

Senator THOMPSON:

– Yes ; a coalmining company. I have several times advocated in this chamber that our taxation forms should be simplified, but we still have the objectionable boomerang curve, which prevents any one but a taxation expert from checking the rate of his tax. We are, of course, able to check the extensions, but I submit that it ought to be within the province of any ordinary business man to check the rate of his tax.

Senator J GRANT:
NEW SOUTH WALES · ALP

– One would require to go to school for a long time to learn how to do it.

Senator THOMPSON:

– That is so. It requires theapplication of higher mathematics. Iam an accountant, but I am not able to follow the mathematical methods used.

Wemust all agree that the increase in the old-age and invalid pensions is at matter for congratulation.. Many of us are reaching: the old-age limit. We do not know when the pension may become acceptable to us; My personal opinion is that we should encouragepeople to prepare for their own old age. If. the National. Insurance Commission is able to. present a proposal which will be acceptable to Parliament by which this. may be done, it will be an excellent thing. We ought to do our best to provide an old-age pension which can in no sense be regarded as a pauper dole; although, of course, if through stress of circumstances; a man is compelled to accept the present old-age pension, he has the satisfaction of knowing that throughout his life he has contributed to the revenue out of which the pension is now being paid.

Senator J GRANT:
NEW SOUTH WALES · ALP

– It. is a. good thing to make the young; people pay for the old people.

SenatorReid. - And also to make the young people prepare for their own old age.

Senator THOMPSON:

– I know that in my young days I had to provide for the aged.

The next item for congratulation, speaking as a member of the general public, is the proposal to repeal those provisions of the Entertainments Tax Act by which tickets that cost less than 2s. 6d. are taxed. I appreciate this, although it must be borne in mind that a great many people at present make their sole contribution to the revenue through the entertainments tax. It must be clear that there is a. good deal to be said on both sides in connexion with this tax, but, personally, I welcome the relief that the Government’s proposal will afford. Entertainment is necessary in all ranks of life, and if the Government can make wholesome entertainment possible for the mass of the peonle at a cheap rate it will do well.

The reduction in the national debt isvery gratifying. I am afraid it is hardly practicable to provide that the debt shall not be allowed to increase. Our country is growing, of course, and its various public utilities must also grow. That means; the expenditure of more capital. We can hardly expect anything else, therefore; than that the national debt will increase, on account of the expenditure on public works, but Itrust that we shall do our utmost to reduce the old debts incurred for war expenditure, and other unproductive things.

The proposal to set aside £1,500,000 for defence is highly commendable. I am glad that a permanent scheme to be worked out over a number of years has been propounded. I hope later on to have something to say on defence details. The Leader of the Senate has, this morning explained to us the Government’s proposals in connexion with the establishment of a rural credits department of the Commonwealth Bank. The scheme ought to. be of great benefit to the man on the land. The proposal to spend a larger amount on post office services will also be welcomed, for it will benefit the whole community.

As a Central Queenslander I appreciate the remarks made by Senator Pearce, this morning on the cotton industry. I am glad that the Government intends to continue a guaranteed price for another season. In the meantime, I understand that it will consider sympathetically the paymentof a bounty on the production of cotton. That seems to me to be the preferable way to deal with the matter. It would. remove the industry from Government control to a greater extent than ia the case at present, and would be more beneficial to the individual grower. It is. difficult to determine the method by which the bounty shouldbe paid. A flat rate has been suggested. Against that it may be urged that a grower may produce great quantities of inferior cotton in order to collect as much bounty as possible, whereas the man who is careful to produce good cotton will be at a disadvantage in that respect. This is a matter which the Governments, with the advice of the Queensland Government, may be trusted to settle in the best way. I trust that before next season comes an appropriate bounty scheme will have been provided for by Parliament.

I notice in the Estimates that it is still proposed to set apart a considerable amount for the purchase of coal. I suppose that it will be expended on Welsh coal for the use of the auxiliary services of the Navy. In passing, I may say that

I tope the time is approaching -when we shall not need to go outside Australia to get a high-class coal of this nature. I submitted to the Government some little time ago a sample of coal sent to me by a party of tributers working a seam in Central Queensland. It was so satisfactory thatthe Government has expressed a desire that 25 tons of the coal may be tested to see whether the ash is non-clinker ing. The coal was said to be -very similar to Welsh coal. I have high hopes that it will prove to be so.

The representatives of a large state like Queensland .are naturally . very interested in the Government’s road grant proposals. It was anticipated that the grant for the ensuing year would be £1,000,000, but, .as I .said by interjection the other day, the various states were unable to expend the amount of last year’s grant -that was allocated to them. In these circumstances it could hardly be expected that the Government would earmark £1,0.00,000 for this year. As a matter of fact, the amount provided for in the Estimates, together with the sums at present unexpended by the states, will total about £1,000,000. It has been suggested that in -places where the bridging of creeks or rivers is necessary in connexion with roads that are being constructed by the expenditure of money from this fund, the cost of the bridges should also be chargeable to the grant. We, in Queensland., lean to that view, and we are hoping that the Minister will , make that concession. I ‘stress the necessity for making :a portion of the grant available for .the re-conditioning of roads which have long ‘been national highways, but which have got out of repair. It seems to me to be essential that ‘the Commonwealth should exercise a more thorough supervision of .the work that is being done. I have heard .of roads in my state which .have cost between £7,000 and £9,000 a mile. It may be that good work has been done, “but it seems to me that it is costing too much. Seeing that the Commonwealth Government is finding half of the money that is being spent, I think it ought to exercise some supervision.

A question has been brought under my notice by .peanut growers in Central Queensland. I believe ‘that there are great possibilties in the cultivation of pea nuts which can be -grown with great advantage in Queensland. Overtures have been made to the Minister for Trade and Customs for the imposition of a protective duty, and I understand that the matter will ‘receive consideration by ihe Tariff Board. Before I approached the Minister I asked the people concerned what .prospects there were of overtaking the importation, and I was assured by them that within twelve months Australia .could easily produce the whole of its peanut requirements. I trust therefore that the protection asked for will begiven.

I regret very much that the very valuable report on meteorology, prepared at great trouble by the Government Meteorologist, has not been, recommended by the Printing Committee to be printed . In previous’ years the reports of the Meteorological Department have “been printed, >but the Printing Committee considers that this year’s report is too bulky. No doubt it is bulky, and I think heads of departments would be well advised to condense their reports so that they will not be too costly to print. As I understand it would have cost £100 to print the report of the Meteorological Department, the Printing Committee was probably justified in pausing to consider whether it was worth while spending that amount of money ; but I think it is well worth the expenditure, because the report contains most valuable information to people on the land and those who travel by water.

Senator Reid:

– Could it have been cut down ?

Senator THOMPSON:

– Some of the. matter might have been omitted, and 1 propose to ask the Printing Committee to reconsider its decision.

The Commonwealth Government has been asked to pay a bonus on the production of gold, and as I come from a district where the Mr Morgan mine is situated, I am strongly in ‘favour of that request. No doubt it is very difficult for :any government to consider the payment of a bounty on a wasting asset such as gold-mining undoubtedly is; but if it can be shown that by the use of most up-to-date machinery, ore residuals and tailings can be brought into commission as quite new factors, and made to produce revenue, I think the ‘Government would be justified in paying such a bounty. There is, I am afraid, no use in suggesting that copper-mining should be favoured in the same way, although at the present time it is in a very bad position in Queensland. The Mr Morgan Company lost £150,000 last year, and that was only one of three years in which the total losses were £350,000.

I am pleased to see that special provision is being made to enable the Institute of Science and Industry to make further investigations into means for eradicating the prickly pear. This is a matter of supreme importance to Queensland. I believe the experiments of the Queensland Prickly Pear Board have reached the stage at which there is every prospect of arresting the further progress of the pear, but some quicker and more effective method is necessary. The cochineal insect is de-‘ struct i ve to the pear,’ but is so slow in its operations that I think the pear will beat it in the long run. £b far poisoning has proved to be the only effective means of combating the pest, and I think it is not beyond the bounds of possibility that the Institute of Science and Industry may devise some means of destroying the pear by spreading a poisonous gas over extensive areas. The suggestion that power alcohol should be made from, the pear is worthy of the keenest consideration. There are two schools of opinion on this subject. On the one hand, the Institute of Science and Industry considers that it is commercially out of the question to produce power alcohol from prickly pear ; on . the other hand a medical man in Sydney has declared that it can be done commercially. If there is so much doubt among scientists on the matter, it ought to be thoroughly investigated. I can conceive of nothing that would be of greater benefit to the community than the destruction of the prickly pear combined with the production of power alcohol.

Talking of power alcohol reminds me of the position of the sugar industry of Queensland. I think every one engaged in that industry should feel grateful for the recent decision of the Government to renew the embargo on the importation of sugar, and so keep the industry stabilized for a further period. The overproduction of sugar is a very serious matter, because the quantity that has to be exported must, be sold at a substantial loss. Of course, that loss is borne by those engaged in the industry. They have not come, cap in hand, to the Government for financial assistance to help them to bear it. Experts differ upon the possibility of producing power alcohol from sugar cane. Some declare that by itself’ the cane will not produce alcohol commercially. Another section in the north, led by Mr. Seymour Howe, claims on good grounds that it can be done. If it can be demonstrated that power alcohol can be produced advantageously from sugar cane, people can go ahead producing as much cane as possible, to the great advantage of Queensland, and Australia generally.

In regard to defence, I agree with the Inspector-General of the Forces, that he is very much hampered by lack of funds. It appears to me that he has been asked to make bricks without sufficient straw, but I think he will have to do his best with the funds available. I notice that his. report contains the usual talk about the unification of the railway gauges. The defence authorities must realize that this is a problem which, for financial reasons, must be tackled very gradually. It seems to me that, as well as continuing to remind the legislatures about the necessity for the unification of the railway gauges, they should work out the quickest and best means of transporting troops with the railways as they are to-day, or as they will .be in the near future, at the same time taking into consideration motor and other means of transport. There is plenty of scope- for their energies in this direction. In the meantime, they can still keep on impressing on the legislatures the need for that unification which will be brought about when sufficient funds are available.

I am aware that the vote for military camps is not what it ought to be. I am afraid that the military authorities in this regard will have to rely on a certain amount of voluntary effort. We used to do this in Queensland, and I cannot see why it could not be done in an Australian sense.

Senator Reid:

– There is no voluntary effort in that direction to-day.

Senator THOMPSON:

– We used to have a great deal of it. I have taken part in voluntary camps, and they have proved very effective.

Senator Pearce:

– I understand that there is a good deal of that done now.

Senator THOMPSON:

– I believe that there is, but it is a practice which could very well be extended. I agree with the suggestion that permanent sites for camps should be chosen. To lay down a camp every year necessitates considerable expense in the provision of water supply and fuel, and with the population increasing the difficulty of obtaining suitable sites becomes greater each succeeding year. The same remarks apply, but in a greater degree, to the finding of areas in which big gun practice can be carried on. The time is ripe when efforts should be made to secure control of areas in which the necessary big gun practice can be carried out annually. A question of detail has been raised as to what can be done with the men in camps on Sundays. My idea is that they can go to church in the morning - that is a parade in itself - and in the afternoon turn to work again. We followed that practice in Queensland at one time, and there was no outcry from the religious denominations.

The question of providing sufficient remounts is a very grave one. To-day we are not breeding the class or the quantity of horses we should require if war unhappily broke out again. Despite the other means of transport at our disposal, the horse has not yet been eliminated. Horses can go where motors cannot. Therefore, in order to supply the requirements of cavalry and artillery, we must still keep our eyes on horse production, and every effort must be made to encourage the breeding of the right type. As horse-breeding is not a profitable, proposition, it is possible that some financial assistance will have to be given directly or indirectly to those who engage in it.

I regret that the Bankruptcy Act has not been brought into force, but I dare say a good deal of machinery has to be arranged before it can be proclaimed. I notice that the Attorney-General announced the other day that matters were well in hand for an early proclamation of the act.

Steps for consolidating the companies law have not made much progress. A suggestion has been made that the States should surrender their rights in respect to company legislation, and that the Commonwealth should pass a uniform Com panies Act, which seems to be the best way out of the difficulty. I trust tha? the necessary legislation will be put through this session, because the time is over-ripe for a uniform Federal Companies Act. I understand that a committee appointed by the Chambers of Commerce of “ Australia is conferring with the Federal Government in connexion with this question, and I hope that some effort will be made to reach finality in the matter.

As the question of a new States referendum is to be brought under the notice of the Prime Minister (Mr. Bruce), I trust the matter will be given sympathetic consideration, and that the machinery necessary for creating new States will be simplified. An appeal would have to be made to the people by way of referendum, and that is all that is being asked for at present.

Queensland is indulging in a scheme of child endowment, in connexion with which, according to this morning’s newspapers, there is a possibility of some difficulties arising. I do not advocate the Commonwealth Government acting in the direction that Queensland is, because that would only have the effect of paralysing industry, as will be the case in that State. I believe in child endowment in a certain form. Pour or five years ago I brought under the notice of employers a child endowment scheme which I thought would be equitable to all concerned, but as it was not favorably considered, I did not proceed with the elaboration of the details. Briefly, the scheme was based on a basic wage for a single man, and had to be considered from the stand-point of the State and of the employers. As a rule it does not matter to the employer whether an employee is married or single, so long as he is efficient, although most employers take a sentimental interest in the conditions under which old and trusted employees are working. Strictly speaking, the employer’s interest is based on efficient service. The interest of the State lies in the man’s marriage and subsequent family. It seems to me that the basic wage of a single man should be built up from two angles. The employers should recognize efficiency, a margin of skill, and long ‘ service, and an understanding should be reached on these points by appointingsomething like the Whitley boards or councils to carry out the necessary investigations. From the stand-point of the State, it appears to me that thewage of a man should be increased when he marries, and further increased onthe arrival of each child, until they reach; say, fourteen years of age, when, in ordinary circumstances, they would be able to assist in supporting themselves. A fund established for that purpose should be contributed to by the Government, the employer, and the employee. I do not think it is the responsibility of the employer, but there would be more contentment amongst the workers, which would be useful, although agood deal could be said against the necessity of employers contributing at all. Such a fund is more the resfionsibility of the State and the employee than the employer.

What I have said will indicate liberal views towards employees, but it has been urged in some quarters that Iam an extremist. During a recent debate an honorable senator opposite desired to know where I was in 1891. Those who are conversant with the happenings of that period know that abush workers’ strike was in progress, and that a thousand men in camp were reported tobe drilling and sharpening shear-blades, and arming themselveswith Winchesterrifles with the assistance of which it was said they were going to “ collar “ the country.

Senator Reid:

– That wasnewspaper talk.

Senator THOMPSON:

-It was not. The (Government of the daycalled out the troops, and as I was an officer in the mounted infantryat that time, I had to obey the call. Owingtothe action of theGovernment serious bloodshed was avoided, andthestrike terminated without anyserious injury to human beings.

Senator Reid:

– There was not much likelihood of that.

Senator THOMPSON:

– It is idle to make such a statement. The honorablesenatormust remember that theprincipaltimbers in the Ebor Creek railway bridgewere sawn almost through, and a train was stopped just in time to prevent an accidentwhichwould have had very serious consequences, in which the workers’ friends as well as others would havebeen involved.

I have also been blamed in consequence of a garbled report of the proceedings at an employers’ meeting in Brisbane. The question under consideration was in relation to the machinery available when the lives of the people and property were endangered in consequence of riots arising out of strikes or revolution. I urged that in such circumstances it would be necessary to use force to protect the people, and indicated that trained forces were desirable in order to subdue the rabble. It was because I made that statement that I have been regarded as an extremist, and as the incident was recently mentioned in another place I thought it my duty to place the facts before honorable senators.

I express my extreme satisfaction with the budget, and I believe it will be very useful to submit its contents to the people prior to the forthcoming general election.

Senator HOARE:
South Australia

– It is only natural tofind honorable senators opposite pleased with the budget. It is onlywhat one could expect when it has been prepared by a government which theyare supporting. The Government intend to increase invalid and old-age pensions from 17s.6d to 20s. weekly,which, of course, will bea benefit to the poor; but at the same time we are informed that a reduction of12½ per cent. is to be made in income taxation, which, incomparison,, willbe of greaterbenefit to the wealthy people in our midst. The poor people are satisfied with an increase of 2s. 6d. per week,, which is equivalent to £6 10s. per year, but those whoare well able to contribute towards the revenue are tobe relieved of paying hundreds of thousandsof pounds in the aggregate. Why should there be any reduction in income taxation ?

Senator Elliott:

– Whyshould there notbe?

Senator HOARE:

– Why should we commence fey relieving the wealthy of their obligations, instead of removing the burden from the shoulders of those who are least able to bear it ? Those paying income taxation are ina position to do so.

Senator HOARE:

– That is no reason why they should be allowed to come here and force our Australian-born workers on the unemployed market.I am informed that while our people are obliged to pay £38 a ton for sugar, our exportable surplus is sold for £9 a ton.

Senator Crawford:

– Sugar cannotbe bought in any part of the world for £9 a ton.

Senator HOARE:

– Probably I have . as much right to believe the authoritythat supplied my figures as the honorable senator hasto believe the authority that supplied his.-

Senator Wilson:

– Senator Crawford is an expert in sugar.

Senator HOARE:

– If he is an expert in sugar, I am an expert in figures. We ought, as far as possible, to employ Australian workmen in this industry. If it were proved that there was more than sufficient employment for our Australian workers, I should not be averseto a few Italians coming here, but I hold that our own people have a perfect right topreference, seeing thatthe industry is so heavily protected. While I believe that the unification of our railway gauges should be carried out as expeditiously as possible, I agree with Senator Thompson that, because of the heavy cost involved, thework must be done slowly. However, it must be done sooner or later, not solely for defence purposes, but also in order to provide more efficient means of transport, and thereby permit of a reduction in freights.

If primary production is to make progress, we should have only one bank - the Commonwealth Bank - in Australia. Itwould be in a position to lendits money at cheaper rates of interest, and make advances much more f reely than is now possible. Australian industries would also expand. I trust that the Australian manufactured article will bear the stamp,” Made in Australia,” and that the people of the Commonwealth generally willgive honest support to the products of their own country. If they do so, our manufactures will expand, and we shall have no unemployed problem.

Debate (on motion by Senator

Elliott) adjourned.

page 1840

SPECIAL ADJOURNMENT

Strike of British Seamen - Immigration Restriction Act - Appointment of Peace Officers

Senator PEARCE:
Western AustraliaMinister for Home and Territories · NAT

.- I move-

That the Senate at its rising adjourn until 11 a.m. to-morrow.

Senator Pearce:

– The honorable, senator will get all the information in time.

Senator GARDINER:

– Yes, when, the ulterior motives of this Government are known.. Why is it not available now?.

Senator Guthrie:

– That is not true.

Senator GARDINER:

– Have honorable senators forgotten that whenever coercion has been attempted in this country by any government it has failed 1 Not very long ago the Wade Government in New South Wales leg-ironed strike leaders and sent them to prison. What happened ? There was really a political revolution. Just as the waters of the Red Sea passed over the chariots of . the Egyptians, so did the rising tide of public opinion sweep the Wade Government out of existence politically. For what reason ? Because it had offended against the liberties of the New South Wales people; it had leg-ironed men for the offence of standing up for their principles and their unions. Is this Government proceeding in a similar direction ?

Senator Barnes:

– The New South Wales Government at present is standing up very solidly for the freedom of its citizens.

Senator GARDINER:

– Yes, and it is voicing the opinions of the New South Wales people, because it is fresh from the constituencies. It is the New South Wales Government which is responsible for this Government’s change of tactics. Instead of a pliable, tory, subservient, lick-spittling form of government, that will do the bidding of the employing tyrants, there is in New South Wales a government that wants to be furnished with good, sound constitutional reasons before it will help to enforce any objectionable legislation.

The PRESIDENT (Senator the Hon T Givens:

– Under the sessional orders it now becomes my duty to put the question, which must be put without debate, “ That the Senate do now adjourn.”

Question put. The Senate divided.

AYES: 10

NOES: 16

Majority . . 8

Question - That the Senate do now divide - put. The Senate divided.

AYES: 20

NOES: 9

Majority . . 11

AYES

NOES

Question so. resolved in the affirmative.

Question - That the Senate at its rising adjourn until 11 a.m. to-morrow - put. The Senate divided.

AYES: 20

NOES: 9

Majority . . . . 11

AYES

NOES

Question, so resolved in. the affirmative.

Senate adjournedat 3.45 . p.m.

Cite as: Australia, Senate, Debates, 28 August 1925, viewed 22 October 2017, <http://historichansard.net/senate/1925/19250828_senate_9_111/>.

View PDF View XML View in Voyant

Senate28 August 1925

QUESTION

POSTMASTER-GENERAL’S DEPARTMENT

Senator McHUGH:through Senator Needham

Senator CRAWFORD:Honorary Minister · QUEENSLAND · NAT

COMMONWEALTH RAILWAYS BILL

CANADIAN PREFERENCE

Senator WILSON:Minister for Markets and Migration · South AustraliaMinister for Markets and Migration · NAT

Senator J GRANT:NEW SOUTH WALES · ALP

Senator WILSON:

Senator J GRANT:NEW SOUTH WALES · ALP

Senator WILSON:

Senator J GRANT:NEW SOUTH WALES · ALP

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator HANNAN:VICTORIA · ALP

Senator WILSON:

Senator Guthrie:

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator J GRANT:NEW SOUTH WALES · ALP

Senator WILSON:

Senator GRANT:NEW SOUTH WALES · ALP

Senator WILSON:

Senator WILSON:

Senator Lynch:

Senator WILSON:

Senator GRANT:NEW SOUTH WALES · ALP

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator Duncan:

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator Payne:

Senator WILSON:

Senator GREENE:NEW SOUTH WALES · NAT

Senator WILSON:

Senator Guthrie:

Senator WILSON:

Senator H Hays:

Senator WILSON:

Senator Ogden:

Senator WILSON:

DISTILLATION BILL

Second Reading

Senator NEEDHAM:Western Australia

Senator J GRANT:NEW SOUTH WALES · ALP

The PRESIDENT (Senator the Hon T Givens:QUEENSLAND

Senator GRANT:NEW SOUTH WALES · ALP

The PRESIDENT:

Senator GRANT:NEW SOUTH WALES · ALP

The PRESIDENT:

Senator GRANT:NEW SOUTH WALES · ALP

The PRESIDENT (Senator the Hon T Givens:

Senator J GRANT:NEW SOUTH WALES · ALP

Senator Gardiner:

Senator J GRANT:NEW SOUTH WALES · ALP

COMMONWEALTH BANK (RURAL CREDITS) BILL

Second Reading

Senator PEARCE:Minister of Home and Territories · Western AustraliaMinister for Home and’ Territories · NAT

Senator Reid:

Senator Thompson:

Senator PEARCE:

Senator Findley:

Senator PEARCE:

QUESTION

ESTIMATES AND BUDGET PAPERS, 1925-26

Senator THOMPSON:Queensland

Senator Lynch:

Senator THOMPSON:

Senator J GRANT:NEW SOUTH WALES · ALP

Senate
28 August 1925

Senator McHUGH:
through Senator Needham

Senator CRAWFORD:
Honorary Minister · QUEENSLAND · NAT

Senator WILSON:
Minister for Markets and Migration · South AustraliaMinister for Markets and Migration · NAT

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator GREENE:
NEW SOUTH WALES · NAT

Senator GREENE:
NEW SOUTH WALES · NAT

Senator HANNAN:
VICTORIA · ALP

Senator GREENE:
NEW SOUTH WALES · NAT

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator GRANT:
NEW SOUTH WALES · ALP

Senator GRANT:
NEW SOUTH WALES · ALP

Senator GREENE:
NEW SOUTH WALES · NAT

Senator GREENE:
NEW SOUTH WALES · NAT

Senator GREENE:
NEW SOUTH WALES · NAT

Senator GREENE:
NEW SOUTH WALES · NAT

Senator GREENE:
NEW SOUTH WALES · NAT

Senator NEEDHAM:
Western Australia

Senator J GRANT:
NEW SOUTH WALES · ALP

The PRESIDENT (Senator the Hon T Givens:
QUEENSLAND

Senator GRANT:
NEW SOUTH WALES · ALP

Senator GRANT:
NEW SOUTH WALES · ALP

Senator GRANT:
NEW SOUTH WALES · ALP

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator PEARCE:
Minister of Home and Territories · Western AustraliaMinister for Home and’ Territories · NAT

Senator THOMPSON:
Queensland

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator J GRANT:
NEW SOUTH WALES · ALP

Senator HOARE:
South Australia

Senator WILSON:
SOUTH AUSTRALIA · NAT

Senator PEARCE:
NAT