Senate
27 July 1934

13th Parliament · 1st Session

  1. Senate
  2. 13th Parliament
  3. 1934

ThePresident (Senator the Hon. P. J. Lynch) took the chair at 11 a.m., and read prayers.

page 813

QUESTION

SUGAR INDUSTRY

Senator MacDONALD:
QUEENSLAND

– Has the Leader of the Government in the Senate observed the following newspaper report of an interview with the AttorneyGeneral (Mr. Latham) after his return from the East : -

In Japan, somebody had asked him why Australia did not buy sugar from Java or Formosa.He replied, “ Are you not excluding the cheapest sugar in the world in the interests of Formosan sugar”? His questioner had answered in the affirmative, and there the conversation had ended. In Java, people had asked why Australia did not buy Java sugar. He had replied that it had been due to Java that Australia now grew so much sugar. Afterthe war there had been a sugar shortage, and sugar had been bought from Java at £80 a ton. Australia had found that she could produce sugar for much less than that, and had gone ahead and had not been able to stop before producing a large surplus.

If the Minister has Been the report, will he, in view of recent criticisms of the sugar industry, include it, for future use, in the archives of departmental informationrelating to sugar and sugar agreements?

Senator McLACHLAN:
Minister in charge of Development and Scientific and Industrial Research · SOUTH AUSTRALIA · UAP

– That information is already embedded in the minds of the Australian people, and also in the archives.

page 814

PAPER

The following paper was presented: -

Commonwealth Public Service Act - Appointment - Department of Commerce -H.W. Lees.

page 814

QUESTION

WHEAT PRICES

What wasthe average free-on-board price of wheatper bushel in the States of New South Wales, Victoria, South Australia, and Western Australia for each of thelast five years?

What was the average free-on-board price of wheat per bushel for the four States mentioned during the same period?

What was the average price of bread per 2-lb. loaf in Sydney, Melbourne, Adelaide, and Perth for each of the past five years? 1 am now in a position to advise the honorable senator that the replies to his questions are as follows: -

page 814

QUESTION

OIL FROM COAL

HydrogenationPlant.- L. J. RogersInvestigation.

Senator DUNN:
through Senator Hoare

asked the Minister representing the Prime Minister, upon notice -

  1. When does the Government intend to redeem its promise, if any, to erectahydrogenation plant for the purpose of extracting oil from coal?
  2. Has the Prime Minister been informed of the conditions existingon the coal-fields and that such conditions are due to the unemployment of6,000 minersand other workers?
  3. Did not the press demand that the Government do something immediately in this matter?
  4. Is it not a fact that during the month of March,1934, in the town of Kurri Kurri, New South Wales, the Prime Minister received a deputation representing over 1.000 boys of that locality whoseages ranged from15 to 21 years, on the subject of their conditions?
  5. If so, is it a fact that none of these boys had ever obtained employment?

Senator Sir GEORGEPEARCE.The Prime Minister supplies the following answers: -

  1. No such promise was made that the Government would erect ahydrogenation plant. The Prime Minister told a representative gathering of coal-mining interests at Cessnock on the 23rd March, 1934, that in view of the serious position on the coal-fields he was prepared to ask Cabinet to give consideration to the question as to whether it would be advisable, in co-operation with the Government of Now South Wales, to ask Imperial Chemical Industries Limited to undertake the construction of a plant in Australia for the production of oil from coal by the hydrogenation process concurrently with construction of a similar plant at Billingham-on-Tees, England. In accordance with that promise the matter was considered by Cabinet early in April, but during the intervening period, that is, between the 23rd March and early in April, other States had made representations on the subject. It appeared to the Commonwealth Government that there was considerable divergence of opinion as to the proper location of sucha plant, and as to the relative merits of brown coal as compared with black coal. Therefore in order that these matters might he investigated an expert committee was appointed comprising representatives of the Commonwealth and the States, and of Imperial Chemical Industries Limited with Dr. A. C. D. Rivett. Chief Executive Officer of the Council for Scientific and Industrial Research as chairman of the committee. The committee has been waiting the receipt from England of certain up-to-date information. This information is due now, and the committee will be called together about the end of this month or early in August. In the meantime, however, Dr. Rivett has, by letter, set out a number of matters that may receive the consideration of members of the committee, so that it can bo taken that no time is being lost in getting down to consideration of the subject. 2, 3, 4 and 5. Yes, but it is the responsibility of governments to see that in establishing any new industries, such industries have sound foundations. Any” ill-considered schemes of development would be certain to collapse, bringing in their wake conditions probably much more serious than those prevailing to-day.

Senator DUNN (through. Senator Hoare) asked the Minister administering the Development Branch, upon notice -

  1. What were the salary and travelling expenses of Mr. Rogers for the nine months he was investigating” the shale oil industry in connexion with the operations atNewes?
  2. What countries outside Australia were visited by Mr. Rogers during these investigations?
  3. Has Mr. Rogers presented his full report to the Government; if so, when will such report be available to the public?
  4. What are the problems which Mr. Rogers was unable to deal with in his recent investigations, and which now necessitate a further trip abroad?
  5. What is the estimated duration of Mr. Rogers’s further tour of investigation and the approximate cost thereof?
  6. Will the development operations at Newnes be further heldup pending another report from Mr. Rogers; and when is it expected that finality can bo reached in these preliminary investigations ?
Senator McLACHLAN:
UAP

– The answers to the honorable senator’s questions are as follows : -

  1. Mr. L. J. Rogers, the Commonwealth fuel adviser, was associated with the Newnes Investigation Committee during the whole period of its investigations extending from 16th February, 1933, to 9th April, 1934. During that timehe received: salary, £515 and travelling expenses, £258.
  2. Great Britain, France, and the United States of America.
  3. Mr. Rogers obtained information for the Newnes Investigation Committee and reported to the committee. The information which he obtained is embodied in the report of the committee.
  4. The purpose of Mr. Rogers forthcoming visit to the United States of America is to obtain a further check on the costs of refining of the crude spirit produced by the cracking ofNewnes shale oil and to bring back about 50 gallons of such spirit for road trials in Australia.It is intended that he should co-operate with an eminent petroleum technologist to be appointed who will also be asked to submit a report on the refining of the crude spirit. This action is being taken in pursuance of a recommendation made by the Newnes Investigation Committee.
  5. Approximately three months. The cost, including the cost of the services of the petroleum technologist, has been estimated by the Newnes Investigation Committee at £2,000. and such expenditure will be borne in equal proportions by the Governments of the Commonwealth and New South Wales.
  6. Negotiations in connexion with theconduct of operations at Newnes are at present proceeding. If a company of the Tight type can be induced now to undertake the development of Newnes it is unlikely that it would be ready to commence operations at Newnes before Mr. Rogers completes the work that he is now about to undertake. It is expected that the investigations will occupy a period of from three to four months.

page 815

QUESTION

PACIFIC ISLANDS SHIPPING SERVICE

Senator DUNN:
through Senator Ho are

asked the Minister representing the Minister for Commerce -

  1. Has his attention been drawn to the press reports appearing in Sydney newspapers, that W. Carpenter and Company. island traders, of Sydney, are placing two motorships of 9,000 tons to trade between England, Europe. Australia, and New Guinea ?
  2. Will the vessels be mannedby Australian white crews, and will they be registered in Australia?
  3. If not, why not?
  4. What number of passengers can each vessel accommodate?
Senator Sir HARRY LAWSON:

– The Minister for Commerce supplies the following answers : -

  1. . I have seen such reports.
  2. The intentions of the owners with respect to manning or port of registry are not known. As regards the latter, the company may register at its option at any British port at which it carries on business. None of its other vessels is registered in Australia.
  3. See reply to No. 2.
  4. It is not known what number of passengers the vessels can accommodate. They are not duo to arrive in Australia forsome months yet.

NEW BUSINESS AFTER 10.30 p.m.

Motion (by Senator Sir George PEARCE) agreed to -

That Standing Order No. 68 be suspended up to and including Friday, 3rd August, for the purpose of enabling new business to be commenced after half -past 10 o’clock at night.

page 816

EVIDENCE BILL 1934

Bill read a third time.

page 816

RIVER MURRAY WATERS BILL 1934

Bill read a third time.

page 816

WINE EXPORT BOUNTY BILL 1934

In committee: Consideration resumed from the 26th July (vide page 760).

Clause 3 -

The Wine Export Bounty Act 1930-32 is hereby repealed:

Provided that bounty may be paid under that act on fortified wine exported before the commencement of this net, and for the purposes of this proviso that act shall continue in force until the Minister declares, by notification in the Gazette, that he is satisfied that all bounty payable under that act has been paid.

Amendment (by Senator McLachlan) proposed -

That after the word “ that “ first occurring, the words “subject. to the Financial Emergency Act 1931 “ be inserted.

Senator McLACHLAN:
UAP

– The present practice is being continued; payments in the past have been subject to a deduction under the Financial Emergency Act.

Amendment agreed to.

Clause, as amended, agreed to.

Clause 4 -

In this act, unless the contrary intention appears - “fortified wine” means wine, the produce of Australia, which is the fermented juice of the grape . . .

Senator McLACHLAN:
Vice President of the Executive Council · South Australia · UAP

– I move -

That the words “ the grape “ be left out, with a view to insert in lieu thereof the words, “ fresh grapes “.

The Federal Viticultural Council has requested that no bounty be paid on wine made from dried grapes, as the wine made therefrom is of inferior quality and would not enhance the prestige of Australian wines abroad. Furthermore, the use of dried grapes in wine-making is prejudicial to the interests of the growers of wine grapes. One ton of dried grapes used to make wine would take the place of about three and a half tons of fresh grapes grown expressly for wine-making purposes. There is a duty of 20s. a gallon on wine made from dried grapes. That high rate of duty was imposed to prevent the use of dried grapes in the manufacture of wine for the domestic market.

As there is no duty payable on wine made in bond and exported direct, ex bond, dried grapes could be used to manufacture wine in bond for export purposes only. The representations which were made to me were submitted to the Minister for Trade and Customs (Mr. White), and although the matter is one which could be regulated by the department in its administration, the Government decided after the bill had passed through the House of Representatives to meet the situation in this way.

Amendment agreed to.

Clause consequentially amended.

Senator O’HALLORAN:
South Australia

.- In this bill the Government is making a commendable effort to ensure to the growers fair and reasonable prices for grapes which are sold to winemakers for manufacture into wine for local consumption. The matter has been the subject of conferences between representatives of the three States most vitally interested and the Federal Government; but the Minister, in his reply last night, indicated that only the Government of South Australia had agreed to a definite proposal. Can the Minister assure us that, under this legislation, the growers of grapes will be. guaranteed fair and reasonable prices for the grapes which they supply to wine-makers, irrespective of whether those grapes are used in the manufacture of wine or fortifying spirit for export or for local consumption?

Senator McLACHLAN (South Australia - Vice President of the Executive been made to the governments of the three States most concerned, but, so far, the only absolute assurance we have received is from the Government of South Australia. Negotiations are still proceeding with the Governments of Victoria and New South “Wales, but so far no definite assurance has been received from either of them.

Senator O’Halloran:

– Can the Minister say whether joint action by the Federal and South Australian Governments will ensure fair prices in South Australia?

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– Unless the other States fall into line, an injustice may be done to South Australian exporters of wine. I do not doubt that, ultimately, there will be uniformity on the part of the three States.

Clause, as amended, agreed to.

Clauses 5 and 6 agreed to.

Clause 1 -

The rate of bounty payable under this act shall be as follows: -

Provided that, if it appears in any financial year that notwithstanding the payment into the Wine Export Encouragement Account oi the total amount specified in the proviso to sub-section 7 of section 5 of this act, there will not be sufficient money available in thai account . .

Senator MCLACHLAN:
Vice-President of the Executive Council · South Australia · UAP

fll.22].- I move-

That the words “ it appears in any financial year that “ be left out, and that after the word “ act,” the words “ it appears to the Minister that, in any financial year “ bc inserted.

These amendments are necessary in order to make it clear that the Minister will be the authority to determine whether sufficient money is, or is not, available in the Wine Export Encouragement Account for the payment of the bounty in full in any financial year.

Amendments agreed to.

Clause, as amended, agreed to.

Clauses 8 to 21 agreed to.

Preamble and title agreed to.

Bill reported with amendments.

Standing and Sessional Orders suspended; report adopted.

Bill read a third time.

page 817

WAR SERVICE HOMES (SOUTH AUSTRALIA) AGREEMENT BILL 1934

Second Reading

Senator MCLACHLAN:
Vice-President of the Executive Council · South Australia · UAP

.- I move -

That the bill be now read a second time.

On the 17th August, 1922, the Commonwealth Government entered into an agreement with the South Australian Government, by which the State, through the State Bank of South Australia, under-, took to provide homes for returned soldiers aud others eligible under the War Service Homes Act, all loans being made under State legislation. The Commonwealth agreed to provide the necessary finance, which the State undertook to liquidate by paying to the Commissioner the principal repaid by purchasers each month. The State, however, was required to pay interest at the rate charged to purchasers on the total of the outstanding Commonwealth advances, whether or not such interest had been paid by purchasers. The effect of this provision was that the State, owing to purchasers being unable to meet their obligations through unemployment, and other causes, found itself called upon to withdraw funds from revenue to supplement the interest short-paid by purchasers. Subsequent to the agreement coming into force, a High Court judgment made it clear that agreements between governments, similar to that made with the State of South Australia in this instance, required ratification by the Parliaments in order to give them validity. The South Australian agreement was not ratified by the Parliaments, and for some time the State has made representations that it is not reasonable to expect it to shoulder the heavy liability which the agreement imposes, more particularly as neither party contemplated such a position arising at the time the agreement was entered into. The Government has given close consideration to this matter, and, having regard to all the facts, including the difficult financial position existing in South Australia, it has decided to release the State from the present agreement by arranging for the transfer of the homes to the War Service Homes Commissioner, who will in future control the activities in South Australia. The formal agreement between the State and the Commonwealth giving effect to this proposal is embodied in Hie bill. In submitting the measure for the approval of the Senate, I point out that the termination of the agreements with the Agricultural Bank, Tasmania, and the Victorian State Savings Bank, has enabled the commission to make a saving in administrative expenditure of £13,000 per annum, whilst the reduction in the remuneration payable to the Western Australian Government, which was agreed to by that State and commenced on the 1st January, 1934, will achieve a further saving of £4,000 per annum. It is anticipated that the transfer of the homes in South Australia to the control of the Commissioner will bring about an additional saving of approximately £1,000 per annum, making a total -slaving of £21,000 per annum. The object of the bill is merely to ratify the new agreement. The bill contains only the necessary machinery clauses, and T ask the Senate to carry it through all its stages.

Senator O’HALLORAN:
South Australia

, - I agree with* the principle incorporated in the bill of removing the financial disabilities imposed on the State ‘bank of South Australia. That institution is an instrumentality of the State Government, and disabilities imposed upon it are, therefore, disabilities borne by the people of South Australia. As the Minister said in his second-reading speech, when the original agreement was made no one foresaw the magnitude and severity of the present depression, which is entirely responsible for the arrears of interest that accumulated under the old agreement, and have to be made good to the Commonwealth by the State of South Australia through the State bank. It is generally agreed that the State housing activities of the State Bank of South. Australia have been administered with extraordinary efficiency. The hank has a staff of officers, many’ of whom have grown up with those activities over a long period of years; they are well-trained to handle housing, and thc;v effort s have given fairly complete satisfaction. What can be said of the administration of the St.ve housing activities, placed under their direct control by State legislation, can be said with equal truth of the administration of the war service homes under the agreement which this bill now seeks to terminate. There is, however, one point which, I think, will not earn the approval of the majority of the people of Australia, who desire that, wherever bodies representing a State government and the Federal Government respectively exist side by side within a State, performing similar duties, one of them shall be eliminated by amalgamation, and the work carried on by the survivor. I personally favour, wherever possible, that survivor being the federal authority, which is in a position to establish uniformity of principle for the whole of Australia, and ensure that all concessions, benefits, or advantages conferred shall be the same iri all parts of the Commonwealth. In this case, however, the position is somewhat’ different. The war service homes activities in South Australia, while they are fairly substantial, are small compared with the State housing activities carried out by the State bank under State legislation, and it would have been advisable, in the circumstances, to continue the policy of allowing the State bank to administer the Commonwealth war service homes, at the same time making provision to relieve South Australia of the liability for losses to the extent granted in all the other States in connexion with war service homes administration. The Minister has stated that, as the result of taking over similar activities in Victoria and Tasmania, the cost of administering war service homes has been reduced, and estimates that, in this connexion, the cost to the Commonwealth of administering war service homes in South Australia will also be reduced by £4,000 a year.. It is. however, unanswerable that the ‘State revenue will. suffer a corresponding loss, because the cost of administering the State bank cannot be proportionately reduced. To that extent, seeing that the State bank is an instrumentality of the State, the finances of South Australia will bc detrimentally affected. I admit that the amount involved is small, but seeing that tlie State bank is an instrumentality of the State Government and its losses or profits either injure or benefit the State revenues, we can scarcely call the reduction of Commonwealth expenditure by £4,000 in this instance a saving to the people. There is, however, no very strong feeling on the matter, because the Government of South Australia, which is, after all, the body most vitally concerned, has not, so far as I am aware, communicated with its federal representatives regarding it. For that reason I am not stressing the point strongly.

Senator McLachlan:

– The State Government could scarcely do so after signing the agreement.

Senator O’HALLORAN:

– Its attitude indicates, I suppose, its satisfaction with the new agreement. It appears to me, however, that in principle it is wrong where co-operat’ion in administration has been accomplished and a federal activity has been worked co-operatively with, and controlled by, a State activity, to discontinue the arrangement and create another federal body within the State. However, I offer no opposition to the bill.

Senator MCLACHLAN:
Vice-President of the Executive Council · South Australia · UAP

– All governments are anxious to give effect to the cleaning-up process to which the honorable sena to:r has referred, in order to have all governmental activities administered by one body. Pursuant to that policy, the arrangements made some years ago with the State Savings Bank of Victoria- and the Agricultural Bank of Tasmania, have been terminated. These arrangements, under happier conditions, might have worked very well, but the position changed completely when there was a lack of applicants for houses, and houses became empty. Up to a few week ago, there were, in South Australia, 295 vacant houses of this class, awaiting tenants or sale.

Senator O’Halloran:

– Are they habitable ?

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– I think so. In any case, the party with which the honorable senator is associated was responsible for the construction of most of them. Judging by external appearances, they are habitable.

Senator O’Halloran:

– I think that none of them are occupied.

Senator McLACHLAN:

– I think we can assume that in any selling and letting transactions the .State bank would first endeavour to dispose of those houses in which it is directly concerned, rather than the houses in respect of which it acts as agent for the Commonwealth. The arrangement proposed in this measure is not going to result in any. administrative loss to South Australia. I believe that the Minister in charge of war service homes has already arranged for the commission to take over certain members of the staff at present employed by the State bank.

Question resolved in the affirmative.

Bill read a second time.

In committee :

Clauses 1 to 6 agreed to.

Schedule.

Senator O’HALLORAN:
South Australia

.- The transfer of the administration of the war service housing activities in South Australia to the War Service Homes Commission must involve some adjustment of the staff now employed by the State bank. I do not think it is possible to provide complete safeguards in this regard in an agreement between governments. But I would like to have an assurance from the Minister that, as far as possible, those already employed in the administration of this act under the State bank will be protected. I make that point because, obviously, it will be necessary to establish a branch of the War Service Homes Commission in South Australia, and I think it would be unfair to engage employees from outside in preference to those now being employed in this work by the State bank.

Senator MCLACHLAN:
Vice-President of the Executive Council · South Australia · UAP

– This particular matter was the subject of prolonged negotiation between the Minister controlling war service homes and the South Australian Government. I gather that it was finally agreed that some of the employees concerned will be absorbed into the State Public Service or the State bank. In the appointment of any additional staff the commission will give preference to returned soldiers, with secondary preference to relatives of returned soldiers in respect of adults, and to children of returned soldiers in respect of juniors. That was the arrangement made between the State Premier and the Minister administering war service homes.

Schedule agreed to.

Title agreed to.

Bill reported without amendment.

Standing and Sessional Orders suspended.; report adopted.

Bill read a third time.

page 820

FLOUR TAX ASSESSMENT BILL 1934

Second Reading

Senator Sir HARRY LAWSON:
Assistant Treasurer · Vic toria · UAP

[11.55] - I move -

That the bill be now read a second time.

This is a measure to ratify certain administrative action which appeared to conform to the intention of the original Flour Tax Assessment Act, but of the validity of which there are certain doubts. The necessity for such action arose because, in the administration of the law, it was discovered that refunds could not legally be made of tax paid on, first, self-raising flour and ordinary flour in certain circumstances; secondly, flour exported from ships’ stores in certain circumstances; and thirdly, flour purchased in one of the States for consumption in the Northern Territory. The levying of the tax in those cases was clearly contrary to the intention of the law, because Parliament definitely contemplated that the tax would not have to be paid twice on any flour, and that flour for export or for consumption in the Northern Territory should be exempt. It was also clearly intended that a refund of £4 5s. a ton should be made with respect to flour that was not consumed when the act ceased to operate. I may add that there is nothing in the bill which has the effect of imposing any disabilities or further obligations upon those who were affected by the tax which was lifted on the 31st May last. As the measure aims at giving clear legal effect to the intention of Parliament when passing the original act, I feel sure that honorable senators will give the bill a speedy passage.

Question resolved in the affirmative.

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

Standing and Sessional Orders suspended; report adopted.

Bill read a third time.

page 820

LAND TAX ASSESSMENT BILL 1934

Second Reading

Senator Sir HARRY LAWSON:
Assistant Minister · Vic toria · UAP

[12.0]. - I move -

That the bill be now read a second time.

This measure deals merely with the method of calculating the unimproved value of leasehold estate in certain types of Crown leasehold which are subject to federal land tax. The cases concerned are conditional leases - that is to say, leases which have a fixed term, with the right of purchase - in New South Wales.

By the Crown Lands (Amendment) Act 1932 of New South Wales, the rent reserved on conditional leases was reduced by 22½ per cent. as from the 30th December, 1932. The effect of this reduction is actually to increase the unimproved value of these lenses for federal land tax purposes. The consequence is that an act which was designed to give some relief to these particular leaseholders would, in the absence of some such action as is proposed in the bill, result in the Commonwealth receiving by way of land tax a substantial proportion of the relief which the State Government sought to give.

The bill proposes that, for purposes of the calculation of federal land tax, the old ‘actual rent reserved before the reduction of 22½ per cent. was made should be re-instated. This provision is to be retrospective to assessments for the year commencing on the 1st July, 1.933, the first assessments affected by the reduction made by the New South Wales act already mentioned.

Question resolved in the affirmative.

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

Standing and Sessional Orders suspended; report adopted.

Bill read a third time.

page 820

COLONIAL LIGHT DUES COLLECTION BILL 1934

Second Reading

Senator Sir HARRY LAWSON:
Assistant Minister · Victoria · UAP

[12.4]. - I move -

That the bill be now read a second time.

Under the Merchant Shipping Act provision is made that where the British Government has erected any lighthouse on or near the coasts of any British possession, light dues may be imposed on ships passing and deriving benefit therefrom. These dues are leviable throughout the Empire.

At the request of the British Government, the Colonial Light Dues Collection Act was passed in 1932, to provide for the collection in Commonwealth ports of light dues on all vessels arriving here after passing and deriving benefit from certain lighthouses erected in the Bahamas and Leeward Islands, West Indies. Subsequently the Board of Trade of the United Kingdom, by virtue of powers conferred by the Merchant Shipping Act, modified the conditions governing the collection of the dues, exempting, for example, vessels in ballast. A request has since been received from the Dominions Office that similar arrangements be made here. The Colonial Light Dues Collection Act does not provide for, or permit of, any exemptions or remissions. An amendment of the act is consequently necessary to give effect to this request.

The proposed amendment takes the form of a new section - section 4a. Under this provision, the collector of customs for a State is authorized to grant exemptions from, and remissions of, light dues in circumstances similar to those under which the Board of Trade grants exemptions or remissions of light dues payable in the United Kingdom.

The bill also defines the ships which shall be deemed to have passed and benefited from the lighthouses and buoys specified in the schedule to the act. This matter is at present covered by subsections 2 and 3 of section two of the act, but these provisions are inelastic, and would necessitate the introduction of fresh legislation in the event of any alteration in the conditions governing liability for payment of the dues. It is accordingly proposed that the sub-sections mentioned be omitted, and section 10 be amended to provide for the making of regulations for defining the ships which shall be deemed to have passed and to have benefited from a lighthouse or buoy specified in the schedule.

Question resolved in the affirmative.

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

Standing and Sessional Orders suspended; report adopted.

Bill read a third time.

page 821

FINANCIAL BELIEF BILL 1934

Bill Teceived from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Sir Harry Lawson) read a first time.

Second Reading

Senator Sir HARRY LAWSON:
Assistant Minister · Victoria · UAP

[12.7]. - I move -

That the bill be now read a second time.

This is a comprehensive measure designed to give effect to the majority of the relief proposals mentioned in the budget. For convenience, the bill has been divided into eight parts, namely: -

  1. – Preliminary.

    1. – Sales tax.
    2. – Maternity allowance.
    3. – War pensions.
    4. – Salaries and wages.
    5. – Relief to primary producers.
    6. – Assistance to fruit-growers.

VIII.- General.

It is desirable that the measure should be passed as early as possible so that the relief proposals contained in it may have legal sanction. I am not suggesting that discussion should be curtailed or that the bill should not have proper consideration ; but I invite the co-operation of honorable senators in passing the measure as speedily as may be possible, consistent with due consideration of the Government’s proposals.

Part II., which is very lengthy, contains proposed amendments of the several Sales Tax Assessment Acts to give effect to the further exemptions announced in the budget speech. The proposed exemptions include a wide range of articles classified as building materials, certain requirements of the dried fruits, mining, fruit-growing, and pearling industries, specified foodstuffs, twenty additional articles or groups of articles used for primary production generally, fifteen miscellaneous articles or groups of articles, and a reduction of the basis of tax on spectacles. A detailed list of items expressed in general terms has been made available to honorable senators.

Last year the position of primary producers received special consideration, and it was thought that the further exemptions then granted exempted from sales tax practically all known items used by primary producers. It has since come to the notice of the Government that a few other items are used by primary producers, and these have been included in the list of additional exemptions.

The total relief involved in all these exemptions is estimated at about £220,000 a year. The exemptions will come into operation on the date of commencement of the amending legislation. There are also certain minor amendments with a retrospective effect, which will be explained in committee.

Part III. of the bill relates to maternity allowances. Under the existing law relating to such payments, an allowance is paid at a flat rate in respect of each birth, and there is also a flat rate income limit, above which an allowance is not payable. It is proposed to grant concessions in two directions, namely - (1) The income limit of £20S per annum is to be progressively increased by £13 per annum for each child under fourteen years of age, subject to a maximum income limit of £299 per annum; and (2) the present allowance of £4 is to be increased progressively by 5s. in respect of each child under fourteen years of age, subject to a maximum payment of £5. The cost of these concessions is estimated at £60,000 a year.

Part IV. deals with war pensions. It will be remembered that, when the Financial Emergency Act was passed in 1931, no reductions were made in the pensions of disabled soldiers, war widows, orphan children, or widowed mothers. On the recommendation of the committee, representative of ex-soldiers, which was appointed at that time, the reductions were restricted to the pensions of relatives, and to certain allowances paid under regulations to ex-soldiers and their dependants. In respect of the pesnions of wives of incapacitated soldiers, the reduction was 22$ per -cent. Last year a partial restora- tion of 12$ per cent, was made, and it is now proposed to restore the pensions in full. This further restoration will involve an additional £109,000 a year, and will benefit 57,000 wives. Including the restoration made last year, the total relief represents £245,000 a year. Other concessions in respect of repatriation benefits announced in the budget speech are not incorporated in this bill, but will be given effect to partly under the Australian Soldiers Repatriation Bill now before Parliament,. and partly by amending the relevant regulations.

Part V. relates to salaries and wages. Honorable senators are aware that, under arbitration awards and Public Service regulations, the salaries of Commonwealth employees are adjusted annually in accordance with the rise or fall of the cost of living. The original Financial Emergency Act embodied comprehensive reductions, including a reduction on account of the fall of the cost of living,, and a further reduction of “real” wages on a percentage basis, ranging’ from 1 per cent, to 24 per cent. Under the provisions of the Financial Relief Act 1933, a partial restoration was made last year of the reduction of “ real “ wages, namely, the reduction over and above that due to the fall in cost of living. The amount involved was £550,000, and it had the effect of fully restoring the reduction that had been made in “ real “ salaries up to £250, calculated according to the 1930 standards. It is now proposed to make a further restoration of £270,000 which will have the effect of restoring in full the “ real “ reduction of salaries up to £388, and of partially restoring reductions of salaries above that amount. As compared with July, 1930, the reduction, on account of the fall in the cost of living, for au adult male is £48, and that reduction will not be affected by the proposed restoration. “With this restoration, the percentage reduction of Commonwealth salaries, including reductions of the cost of living, will be -

From £389 to £1,000-12$ per cent.

From £1,001 to £2,000-15 per cent.

From £2,000-17$ per cent.

Salaries up to £388 per annum will be affected only by the cost of living reduc- don of £48. The percentage reduction on all salaries, including the cost of living reductions, will then average 15 per cent. A corresponding adjustment will be made in respect of females.

In the case of members of the naval, military and air forces, adjustments will be made which will have the effect of putting them in relativelythe same position as other members of the Public Service.

Part VI. of the bill provides relief to primary producers. In the Financial Relief Act 1932, provision was made to assist farmers in the purchase of fertilizers used in growing crops other than wheat. A subsidy of 15s. a ton on fertilizers applied to soil in 1932-33 was paid through the State governments. The total payments were approximately as follow : -

The subsidy proved of considerable benefit to primary producers, and encouraged the desirable practice of adequately fertilizing the soil. In view of the results that accrued, the Government is satisfied that further assistance is justified this year. Provision is accordingly made in the bill for £250,000 to enable the payment of a subsidy of 15s. a ton on fertilizers applied to the soil in the growing of crops, other than wheat, from the 1st July, 1.934, to the 30th June, 1935. It is estimated that £200,000 will be payable this financial year and £50,000 next year. Following previous practice, the amount will be paid to the State governments for distribution to the primary producers concerned, after claims have been certified by the Department of Commerce.

Part VII. of the measure relates to assistance to fruit-growers. Last year, £125,000 was made available to the States under the Fruit-growers Relief Act for assistance to the growers of apples and pears because of the serious con dition of the industry as a result of the extremely low prices realized for exports to the United Kingdom and Europe. During the current season exports are being reduced and restricted to the most suitable types of fruit. As one half the crop will be exported, the oversea prices are of great importance to the industry, particularly in Tasmania. Unfortunately, the prices realized up to date for the current year’s apple crop are very unsatisfactory, and growers will have difficulty in making ends meet. Further, the industry has suffered from adverse seasonal conditions. The Government believes that assistance is still necessary, and proposes . to provide a further £125,000 to the States for this purpose. Last year the assistance was limited to growers who had suffered losses on exports, and, as a result, were in financial difficulties. Owing to the practical difficulties of administering such an arrangement, and in deference to the general views of State governments, it is now proposed to dispense with this condition and to leave the method of distribution to the State governments, which, through their departments, are more closely in touch with growers than is the Commonwealth Government. The £125,000 will be allocated to the States on the basis of exports for the year from July, 1933, to June, 1934, the amount for each State being -

The State governments will be asked to consult with those engaged in the industry as to the method of distribution. Each State will, therefore, be free to assist the producers in such ways as will meet the conditions existing in the State.

Part VIII. refers to the commencement of the relief proposals. Generally, they will take effect on the date of the commencement of the legislation ; but, in the case of war pensions and salaries, the restorations will apply to the whole of the first pay after that date. The

Government is anxious that the relief provided in. the bill should not be delayed, and trusts that its passage will be expedited.

Debate (on motion by Senator Barnes) adjourned.

page 824

NAVIGATION ( MARITIME CONVENTIONS) BILL 1934

Message received from the House of Representatives intimating that it had agreed to the amendments made by the Senate in this bill.

page 824

NATIONALITY BILL 1934

Second Reading

Senator Sir GEORGE PEARCE:
ern Australia - Minister for Defence · West · UAP

[12.25].- I move-

That the bill be now read a second time.

The object of the bill is to give effect to Articles8 to 10 of the Convention on certain questions relating to the conflict of nationality laws, which was concluded at The Hague in 1930. Those Articles read as follow: -

Article 8. - If the national law of the wife causes her to lose her nationality on marriage with a foreigner, this consequence shall be conditional on her acquiring the nationality of the husband.

Article 9. - If the national law of the wife causes her to lose her nationality upon a change in the nationality of her husband occurring during marriage, this consequence shall be conditional on her acquiring her husband’s new nationality.

Article 10. - Naturalization of the husband during marriage shall not involve a change in the nationality of the wife except with her consent.

Every one will agree that it is very desirable that steps should be taken to remove the serious difficulty which arises when a British woman becomes stateless by reason of her marriage. The Commonwealth nationality law is based on the British Nationality and Status of Aliens Act of 1914. All the selfgoverning dominions have adopted Part II. of that act with a view to carrying out a uniform system of naturalization throughout the Empire, and of defining who are British subjects. It is obviously to be desired that such uniformity should be maintained.

The general principle which underlies the British law is that the wife of a British subject shall be deemed to be a British subject and the wife of an alien shall be deemed to be an alien. The Commonwealth law, however, in common with the general British law, already provides that, where a man, during the continuance of his marriage, ceases to be a British subject, by becoming naturalized in a foreign State, his wife may retain her British nationality by making a declaration that she desires to do so. It also provides that the GovernorGeneral may grant a certificate of naturalization to a British-born woman married to an alien who is the subject of a State which is at war with Hie Majesty. At present, there is no provision in the Commonwealth law by which a British-born woman, who, on her marriage with an alien, becomes stateless, may retain or regain her British nationality while her husband is still living, except under the special circumstances I have just mentioned.

The foreign law which has affected British women to the greatest extent in rendering them stateless on marriage, is’ that of the United States of America. Since 1922 a woman who married an American citizen did not thereby acquire her husband’s nationality unless she became naturalized on her own account after at least twelve months’ residence in the United States of America, and as she had lost her British nationality by reason of her marriage she had no nationality. Thousands of British women, including many Australians, became stateless through marrying American citizens. The position was regarded so seriously by Canada, which was naturally the dominion most affected, that, in 1931, legislation was passed to give effect to the Hague Convention. The British Parliament passed the necessary amending act last year, and New Zealand is now proposing to follow suit.

It is very desirable that the Commonwealth should lose no further time in fulfilling its obligations and doing its part to restore uniformity of nationality laws throughout the Empire. Anomalous situations are arising on account of the lack of uniformity.For example, wives of American citizens are arriving in Australia from time to time in possession of British passports under the British Nationality and Status of Aliens Act 1933, on which they are described as British subjects. An Australian-born wife of an American citizen, when abroad, would be entitled to claim the rights of a British subject, but in this country she must still be regarded as an alien. This anomaly should be remedied as soon as possible.

There have been strong representations from women’s organizations in Australia and elsewhere that the Hague Convention should not be ratified until it has been revised to embody the principle of equality between the sexes. These representations have received the very careful and sympathetic consideration of the Government from time to time, with the result that before the matter came up for reconsideration at the League of Nation!! Assembly in 1932, the British Government and the League of Nations were advised in the following terms: -

Australian Government is prepared to accept principle that ti. woman on marriage shall not tone her nationality or acquire new nationality without her consent nml to amend nationality law accordingly, provided Eis Majesty’s Govern men ti in United Kingdom and British self-governing dominions are agreeable to take similar action bo that uniformity of nationality laws throughout Empire may be preserved, such uniformity being of importance in the interests of the system of Imperial naturalization now in force.

The Government still subscribes to the views expressed in that message. During the past year the Commonwealth lias been requested to take a lead in passing legislation embodying the wider principle. This subject has been given very earnest consideration by the Government, which feels strongly that nationality, in so far as British subjects are concerned, should be dealt with on an Empire basis, and that any attempt on the part of tha Commonwealth to get out of step with the rest of the Empire would lead only to confusion. It may, however, be stated, emphatically, that this bill is not an alternative to the demands made by the women’s organizations. It is designed to remove a real hardship experienced by many women, and docs not close the door to further consideration of the principle of equality and to the acceptance of the women’s demands when a more general agreement on them can be reached between the various governments of the Empire.

A few words of explanation respecting the provisions of the bill may bc useful. .1 1 is proposed to substitute a new section for section 18 of the principal act. Paragraph 1 repeats the existing provision that the wife of a British subject shall bc deemed to be a British subject, and the wife of an alien shall be deemed to be an alien. Paragraphs 4 and fl re-enact the existing exceptions to the general principle, and paragraphs 2, 3 and 5 add new exceptions.

Paragraph 2 deals with the British woman, who marries a foreigner, but does not thereby acquire his nationality. It provides that whether she. was married before or after the commencement of this act, she will retain her British nationality. Paragraph 3 makes a similar provision for the British woman, who, having married a British subject, is liable to become stateless when her husband has become naturalized in some other country. Paragraph 4 also applies to a British woman whose husband changes his nationality after marriage; hut as a result of the provisions of paragraph 3, this provision will, in future, apply only in cases in which under the law of the foreign country the woman acquires her husband’s new nationality. Paragraph 5 is intended to give effect to article 10 oi the convention which provides that naturalization of the husband during marriage shall not involve a change in the nationality of the wife except with her consent. Paragraphs 3 and 4 deal with this provision so far as British women aro concerned, but paragraph 5 applies to the alien woman whose husband acquires British nationality by the grant to him of a certificate of naturalization. After the end of this year, she will be afforded an opportunity to declare whether she, too, desires to acquire British nationality. I have already explained that paragraph 6 re-enacts an existing provision.

In conclusion, let me repeat that the passing of this bill does not place any obstacle in the way of future consideration of the principle of equality. Whether we believe in that principle, or in the principle that the nationality of the wife should follow that of the husband, we are not committed by accepting the provisions of this bill. It will remove a hardship, and will avoid confusion that is resulting from the fact that Canada and the United Kingdom have already passed legislation containing provisions similar to those embodied in. this bill. They did so in the belief that Australia and the other selfgoverning dominions would follow suit, and no good purpose would he served by further postponement of legislation which is already long overdue.

Debate (on motion by Senator Barnes) adjourned.

page 826

SPECIAL ADJOURNMENT

Motion (by Senator Sir George Pearce) agreed to -

That the Senateat its rising adjourn till

Tuesdaynext at 3 p.m.

page 826

ADJOURNMENT

AssassinationofDr.Dollfuss, ChancellorofAustralia.

Senator Sir GEORGE PEARCE:
Minister for Defence · Western Australia · UAP

[12.33].-I move-

That the Senate do now adjourn.

Honorable senators have,no doubt, read in the press the report of the assassination of Dr. Dollfuss, tho Chancellor of Austria. Although the circumstances surrounding the assassination are not yet entirely clear, the official information received by the Government is generally on the same lines as the press reports. Martial law has been declared in Vienna, the army remains loyal to the Government, and the situation in the capital and provinces remains quiet.

I am sure that in expressing condemnation of this terrible act of assassination, and sympathy with the people of Austria and the widow and family of tho late Dr. Dollfuss, I am voicing the opinion of all honorable senators.

Question resolved in the affirmative.

Senateadjourned at 12.37pm.

Cite as: Australia, Senate, Debates, 27 July 1934, viewed 22 October 2017, <http://historichansard.net/senate/1934/19340727_senate_13_144/>.

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