Senate
22 April 1940

15^th Parliament · 2^nd Session

QUESTION
- EXPORT OF FRUIT
QUESTION
- EXPORT OF SCRAP IRON AND PIG IRON
QUESTION
- WOLFRAM PRODUCTION
QUESTION
- LANDS FOR MILITARY PURPOSES
QUESTION
- EMPIRE AIR SCHEME
QUESTION
- AUSTRALIAN IMPERIAL FORCE
QUESTION
- AERODROMES
QUESTION
- WOOL PRICES
QUESTION
- AMALGAMATED WIRELESS (AUSTRALASIA ) LIMITED
QUESTION
- GOVERNOR-GENERAL’S SPEECH
SPECIAL ADJOURNMENT
ADJOURNMENT
- Flax Prices - Defence Contracts - War Loans - Inglewood Post Office
PAPERS

The. President (Senator the Eon. J. B. Hayes) took the chair at 3 P.m., and read prayers.

page 237

QUESTION

EXPORT OF FRUIT

Senator LAMP:
TASMANIA

– I ask the Minister representing the Minister for Commerce whether the Government will give consideration to a proposal that, in order to place the export, of fruit upon a just basis, the system be adopted of granting licences to all firms engaged in the export business last year, the quantity to be exported to be divided pro rata among them on the basis of 1939 exports?

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

– The honorable senator’s suggestion will be taken into consideration.

page 238

QUESTION

EXPORT OF SCRAP IRON AND PIG IRON

Senator FRASER:
WESTERN AUSTRALIA

asked the Minister representing the Minister for Commerce, upon notice - 1, What tonnage of scrap iron and pig iron has been shipped to Japan since the outbreak of War?

What tonnage has been shipped to other neutral countries T

Senator McLEAY:
Minister for Trade and Customs · SOUTH AUSTRALIA · UAP

-The Minister for Commerce has supplied the following answer : -

In view of the present international situation it is not the practice to make available for general information particulars of goods exported to specific countries.

page 238

QUESTION

WOLFRAM PRODUCTION

Senator HERBERT HAYS:
TASMANIA

asked the Minister representing the Minister for Supply and Development, upon notice -

Is it a fact that the Commonwealth Government lias taken all wolfram produced, and that those engaged in its production are being hampered in their operations by the price not yet having been fixed?
If so, will the Minister give this matter early attention so that those engaged in the industry may be in a position to make the necessary arrangements to carry on their industry ?

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

– The Minister for Supply and Development has supplied the following answer: - 1 and 2’. Arrangements have been made for the United Kingdom Government to purchase Australia’s exportable surplus of wolfram and scheelite. The price decided upon is 60s. sterling per unit free on board. The Government is not aware that the operations of producers are being hampered in any’ wan Advices of certain details from the United Kingdom Government are awaited. These are expected within the next fortnight. When they are to hand, full particulars on details will be available for the information of producers.

page 238

QUESTION

LANDS FOR MILITARY PURPOSES

Senator SHEEHAN:
VICTORIA

asked the Minister representing the Minister for the Army, upon notice -

Is it a fact that certain lands and/or buildings utilized or proposed to be utilized by the Army- Department for military purposes ha>-« been abandoned or are proposed to be abandoned by the department?
1. If so, will the Minister indicate where such lands and/or buildings are situated, the reasons for abandonment, and the total costs involved I

Senator FOLL:

– The Minister for the Army has supplied the following answers : -

Yes.
Lands and buildings have been utilized temporarily for military purposes in a large number of cases to meet requirements as they arose, occupancy being discontinued when the necessity no longer existed. The honorable senator’s question is of too general a nature to be answered without special and lengthy investigation; but if the honorable senator will indicate a particular locality in respect of which he desires this information it will be possible to furnish particulars earlier than would otherwise be the case.

page 238

QUESTION

EMPIRE AIR SCHEME

Recruiting

Senator CUNNINGHAM:
WESTERN AUSTRALIA

asked the Minister representing the Minister for Air, upon notice -

Is it a fact that very considerable delay takes place between the enrolment and passing of Air Force recruits and the call-up of men selected for service?
Is it a fact that great dissatisfaction exists among the applicants owing to such delays?

Senator FOLL:
UAP

– The Minister for Air has supplied the., following answers: -

Applicants for certain musterings in which there is a shortage of experienced personnel, notably fitters, are enlisted shortly after completing their tests. The - intake of recruits for aircrew and other musterings depends on the formation of new units and training establishments in accordance with an approved programme. Some period of waiting is, therefore, inevitable, particularly in the early stages, but all suitable applicants are being enrolled in the Air Force Reserve and called up as required. The period between the date of acceptance of- applicants and their enlistment will be reduced as the Empire Air Scheme develops and training facilities are extended. Where it is possible to do so, accepted applicants are being advised of the approximate date, on which their services will be required.
It has been appreciated that one of the major difficulties in connexion with the scheme would be to satisfy the understandable keenness of applicants to serve immediately after acceptance of their applications. The organization for. training is being .-established in accordance with the programme agreed on at Ottawa by the ‘four governments concerned, and it is not ‘ intended to depart from this programme.. Preparations so far are well up to schedule.

page 239

QUESTION

AUSTRALIAN IMPERIAL FORCE

Motors and Trucks - Paint Supplies - Transportation ok Trainees.

Senator BROWN:
QUEENSLAND

asked the Minister representing the Minister for the Army, upon notice -

Was it intended that Australian-built motors and trucks should he supplied to the Australian Imperial Force here and abroad?
Were orders given for the building of these trucks?
Have these orders, or a part of them, been cancelled?
If so, why?

Senator FOLL:
UAP

– The Minister for the Army has supplied the following answers : -

Consideration has been given to the supply of Canadian-built chasses and Australianbuilt bodies for use by the Australian Imperial Force in Australia and abroad. The Australian content of such vehicles is approximately 75 per cent.
Orders were placed for a certain number of vehicles for despatch abroad. 3 and 4. No.

Senator FRASER:

asked the Minister representing the Minister for the Army, upon notice -

How many trucks have been transported to Western Australia for use by the military authorities ?
Were tenders called in that State for the building of truck bodies; if not, why not?
Is it a fact that the paint necessary was also transported to Western Australia from the eastern States for the painting of the trucks?
Were tenders called for the supply of such paint; if so, were handling and transport charges taken into account when tenders were decided on?
If no tenders were called for the supply of paint, why was not the purchase of paint made in Western Australia?

Senator FOLL:

– The Minister for the Army has supplied the following answers : - .

One hundred and fifty-five.
No. The trucks were of two types - utility type and lorries, 30 cwt. and over. T hese vehicles were urgently required for training after the outbreak of war. Central contracts were arranged with Fords and General Motors for supply in each State, complete with bodies. The prices quoted were identical for delivery into Ordnance Stores in each capital city, the transport costs being absorbed by the contractors. The Department of the Army had nothing to do with the contract for the bodies, which, it is presumed, were built under mass-production methods at the. contractors-‘ factories in Geelong and Woodville.
This is probably so, as. the special paint for army vehicles is made to War Office specifications by factories in the eastern States. This paint, however, should be available through the manufacturers’ agents in each State.
No. Vehicles are ordered painted, and the contractor supplies the paint.
This was a matter for the suppliers of the vehicles. In any case, the paint used for army vehicles is not manufactured in Western Australia.

Senator FRASER:

asked the Minister representing the Minister for the Army, upon notice -

What was the cost per man of transporting the members of the 2nd/11th Battalion of the Australian Imperial Force from Western Australia to their respective camps in Now South Wales and Victoria - giving rail and boat costs ?
What cost was incurred per man for their return to their home State - rail or boat?
What was the average number of weeks of training per man in New South Wales and Victoria?

Senator FOLL:

– The Minister for the Army has supplied the following answers : -

The average cost was £11 per man for transportation by boat. No rail travel from Western Australia to New South Wales was involved for the 2nd/11th Battalion.
The average cost was £11 per man for transportation by both boat and rail.
The average number of weeks of training per man in New South Wales was fourteen weeks. No training was carried out by the 2nd/11th Battalion in Victoria.

Senator E B JOHNSTON:
WESTERN AUSTRALIA

asked the Minister representing the Minister for the Army, upon notice -

What was the approximate cost of sending Western Australian troops in the Australian Imperial Force to the eastern States for training?
Is it intended to continue this practice?
What training is given in the eastern States that cannot be afforded to these volunteers in their home State?

Senator FOLL:

– The Minister for the Army has supplied the following answers : -

Approximately £29,000 to the end of June, 1040.
No, except in the case of personnel Tor technical units.
In the case of signal units, trade qualifications required of personnel are so high that all available sources of man-power in Australia have to be utilized and men have to be chosen from- every State. It is essential to concentrate the complete signal unit for technical and collective training so that efficient communications may be obtained.Reinforcements of Artillery, Engineer, Signal, Army Service

Corps, and Army Medical Corps units are being sent to eastern States for training. In view of the small numbers involved in each monthly reinforcement it is not practicable to train all men in the States in which they enlist. In addition, the decision regarding the concentration for technical training in certain States was reached after careful investigation was made with a view to obtaining the most efficient training with the minimum of expenditure in providing the special facilities required.

page 240

QUESTION

AERODROMES

Wynyard: Bankstown

Senator AYLETT:
TASMANIA

asked the Minister representing the Minister for Air, upon notice -

Has any money been made available for enlarging and improving the Wynyard aerodrome?
If not, can the Minister give an assurance that there will be sufficient money made available in the coming financial year to carry out the necessary improvements to that aerodrome?

Senator FOLL:
UAP

– The Minister for Air has supplied the following answers: -

Proposals for the enlargement and improvement of Wynyard aerodrome, which involve considerable expenditure, have been under consideration but owing to reduction of departmental estimates it has not been possible to provide funds for this purpose during this financial year.
It is not possible at this juncture to give the assurance sought as the provision of funds for improvements to Wynyard aerodrome during the next financial year will depend upon the amount finally appropriated by Parliament for works and civil aerodromes throughout the Commonwealth.

Senator AMOUR:
NEW SOUTH WALES

asked the Minister representing the Minister for Air, upon notice -

Has the Department of Air any intention of acquiring for defence purposes an area of land which is the property of the Bankstown Municipal Council?
Is it a fact that the council and the Bankstown Agricultural Society have spent a considerable amount of money in establishing a showground on this area?
In the event of the department acquiring the area, will the Department of Air make adequate compensation in the direction of providing a suitable area of land for a showground, together with improvements similar to those made on the present area?

Senator FOLL:

– The Minister for Air has supplied the following answers: -

The establishment of an aerodrome at Bankstown and the acquisition of an area of land for the purpose is under active consideration of the Air Board.
The Air Board has no knowledge of this. The board’s inspecting officers -were informed by the local council that the possibility of establishing a showground was under consideration but no mention was made of any expenditure having been incurred.
The acquisition of land, if approved, will be made under the National Security Act, and the usual conditions in regard to compensation payable will be applied.

page 240

QUESTION

WOOL PRICES

Senator E B JOHNSTON:

asked the Minister representing the Minister for Commerce, upon notice -

What was the average price per lb. received for the Australian wool clip in the year 1914-15, and in each succeeding year to date?
In which years were sales made to the Imperial Government under the acquirement scheme ?
During which years did B.A.W.R.A. operate?
In which years were the prices on the gold basis; or what range of exchange prevailed between Australia and Great Britain?

Senator McBRIDE:
Minister without portfolio assisting the Minister for Commerce · SOUTH AUSTRALIA · UAP

– The Minister for Commerce has supplied the following answers : -

Australian wool - the Commonwealth Statistician’s recorded export values per lb. for the years shown were as under: -

The British Government acquired the Australian wool clip in November, 1010. It, therefore, acquired part of the 1916-17clip and the total clips for 1917-18, 1918-19, and 1919-20.
The British-Australian Wool Realization Association (B.A.W.R.A.) was incorporated on the 27th January, 1921, to manage the realization of 1,800,000 bales still on hand when acquirement by the British Government ceased. It disposed of the last bale of wool in its control on the 2nd May, 1924, and made the final distribution to the contributories to the association on the 15th March, 1932. While this was being done, the current clips were also marketed.
In 1914-15, the Australian currency was on the gold standard. On the 14th July, 1915, Australian currency followed sterling and went off gold. Except for two short periods in 1020-21, when, due to abnormal circumstances, sterling went to a premium, and in 1924, when sterling was at a discount amounting to a maximum of 3½ per cent., the two units of currency remained identical. On the 30th April, 1925, Australia, in company with Great Britain, returned to the gold standard, and the Australian £1 moved to parity with sterling. Australia went off gold in 1929, and Great Britain went off gold in September, 1931. Neither currency has returned to the gold standard since those dates. Subsequent movements of the rate of exchange between Great Britain and Australia were as under: -

September, 1929 - the Australian £1 was at a discount on sterling of 1 per cent, to 1.4 per cent.

In 1930, the rate of discount increased to 8.5 per cent.

In January, 1931, the rate of discount was 19.7 per cent.

In February, it increased to 30.0 per cent. and remained at that figure until December of that year, when it was reduced to 25.3 per cent.

In January, 1932, it was stabilized at 25.0 per cent., at which point it has since remained.

page 241

QUESTION

AMALGAMATED WIRELESS (AUSTRALASIA ) LIMITED

Senator McBRIDE:
UAP

– On the 19th April, Senator James McLachlan asked the Minister representing the Treasurer the following questions, upon notice: -

Is it a fact that the Government is the principal shareholder in Amalgamated Wireless (Australasia) Limited?
If so, will the Minister explain the reason for legal proceedings being taken against that company?
Was the said case dismissed, with costs against the Government, by the Full Court on Wednesday last?

The Treasurer has now furnished the following answers : -

The Commonwealth Government has a majority of shares in the company.
The Commonwealth considered that the company had invaded the exclusive rights of the Postmaster-General under the Post and Telegraph Act, and was so advised by counsel.
By a majority of three justices to two, the case was dismissed with costs but without prejudice to any action which the Commonwealth may be advised to bring in relation to the company’s obligation to conform to the International Telegraph Conventions of St. Petersburg or Madrid or the regulations annexed thereto.

page 241

QUESTION

GOVERNOR-GENERAL’S SPEECH

Debate resumed from the 19th April, 1940 (vide p. 197), on motion by Senator Wilson -

That the following Address-in-Reply to His Excellency the Governor-General’s opening Speech be agreed to -

We, the Senate of the Commonwealth of Australia, in Parliament assembled, desire to express our loyalty to our Most Gracious Sovereign and to thank Your Excellency for the Speech which you have been pleased to address to Parliament.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– I wholeheartedly support the motion. Honorable senators were well aware that this session would be devoted to business arising out of the war. If any doubt existed on that point, it has been removed by the GovernorGeneral’s Speech. When Parliament went into recess we were fully alive to the fact that war had been declared, but at that time hostilities directly affecting us had not actually occurred. To-day, however, we are faced with the realities of war; the fight is on, and there can be no retreat. For us it must be either victory or defeat. We were told that the last war was fought to end war. We little dreamt then that less than a quarter of a century later we should again be engaged in a lifeanddeath struggle for the preservation of not only the British Empire but also of democratic freedom throughout the world. In his speech, the Leader of ‘the Opposition (Senator Collings) evaded the main issue arising in this debate by dealing with what he called the internal war. He devoted much of his eloquence to that subject. What he described as the internal war, I submit, is but a minor issue. Senator Abbott, in seconding the motion, addressed himself principally to post-war problems and possible methods for their solution. Without in any way minimizing the importance of the honorable senator’s argument, because I fully realize that our post-war problems will he immense, I suggest that we must at this juncture deal with first things first, and that our most urgent problem now is the winning of the war. We are fighting for our very existence. That is the paramount problem which confronts our people to-day. Up to date the Government’s war effort has been commendable. I admit that it has not been spectacular. The Prime Minister has not gone around the country waving a flag and merely talking defence. He, and every member of the Government, are solidly applying themselves to the job, and so far their efforts have been outstandingly successful. The Leader of the Opposition declared that Labour’s defence policy to-day is the same as that enunciated by labour leaders 26 years ago. I do not agree with him. On the outbreak of the last war the then Labour Prime Minister of Australia, Mr. Andrew Fisher, when asked to declare Labour’s policy, replied that Australia would help Britain in the conflict “ to the last man and the last shilling “. Labour’s policy to-day cannot be -summed up in that phrase. Approximately 365,000 Australians volunteered for active service in the last war. To-day the Labour party is opposed to sending one man on active service overseas.

The Government’s defence policy has been criticised on the ground of its secretiveness. The defence policy of any country must, to a certain degree, be kept secret. Particularly is this so in a time of war. Should we blazon our proposals abroad, even among our own people, we should run the risk of betraying our intentions to the enemy. That, of course, would be greatly to our detriment. Not only in respect of purely defensive matters, but also on the economic side, this Government has already done much to assist the Mother Country in the present conflict. However, instead of meeting with a full measure of approbation, it has been attacked by carping critics. The Leader of the Sena’te (Senator McLeay)* in his address, reminded us of the sale of £120,000,000 worth of Australian primary products to ‘Great Britain. It is natural to expect a measure of adverse criticism of a deal of such magnitude, but such criticism as has been voiced has been directed to administrative rather than the organization aspects of the transaction. The attitude of a number of” critics can be summed up in these words, “ All right,..we have sold these products to Britain; but Britain wants those products just as much as we want to sell them to Britain “. That attitude is not justified by the facts. With the exception of wool, we are not selling anything to Britain which that country could not secure from neutral countries. In addition, such countries would be prepared to pay for the transport of all products which they sold to Britain. In our case, however, the Mother Country has undertaken to lift our products from Australia and to bear insurance, freight, and all other charges. Of course it is only human to be parochial. Usually we are prone to view big issues from our own particular point of view, and to judge transactions of this kind in the light of their effect upon ourselves. Unfortunately, many people have criticized the sales to the United Kingdom in that selfish manner. Our producers of wool, meat, wheat and fruit have been clamouring for greater sales -and higher prices for their products. Taken as a whole, however, this transaction represents a wonderful achievement on the part of the Government, and much of the criticism which has been levelled against it is entirely unfounded. Take for instance the sale of our wool to Great Britain. This is a controversial matter about which I profess to know something. Those who were associated with this industry during the eventful years 19i4, 1915, and part of 1916 know exactly what the position of the woolgrower was at that time. It was the most anxious period in the history of the wool-growing industry of Australia. The growers did not know from day to day what was going to become of their product. To-day, although still in the first years of this war, Australia has sold practically three-quarters of its total clip to Great Britain and payment for it has been made to the banks in Australia.

A good deal has been said regarding price levels. This afternoon the Minister gave a comprehensive list of average prices over a long period of years. Growers and others have told us through the press that the price of producing a pound of wool is approximately ls. 2d. This is nonsense. A. commission set up by the Commonwealth. Government in 1932 to examine this matter found that . the cost of producing wool was a little less than 9d. per lb. This finding was later supplemented by a commission appointed by the Queensland Government, which arrived at a price even a little less than that fixed by its predecessors. It can be seen therefore that the average price of ls. l£d. being paid by the Government of the United Kingdom is approximately 50 per cent, higher than the cost of production. The effect of the agreement under which we are selling our primary products to Great Britain, is that almost all of these products are practically pooled, and every one engaged in our primary industries is getting a share of the market. It is not possible under this scheme for one producer to rush in and grab the market for himself.

I feel confident that the Government is doing more than ever before to eliminate profiteering during the war. Some months ago, a very wise piece of legislation was passed through this Parliament presenting the prices ruling on the last day of August, 1939, as the standard of pre-war prices. In the previous war it was not until 1917 that the Commonwealth Government decided to embark upon a price-fixing scheme, and the difficulty then encountered was that of fixing a pre-war standard. The difficulty cannot occur in connexion with price-fixing during this war. If at any time it is desired to investigate the price of a commodity, with a view to controlling profiteering, a standard pre-war price is readily obtainable.

It is noteworthy that, although there never was a time when Australia was engaged to such a vast degree in the manufacture of munitions, these munitions are being turned out at cost price. All manufacture of munitions is under government supervision, and the closest scrutiny of profits is maintained. That is a very commendable state of affairs. A few days ago the Leader of the Opposition read out a list of rising prices. It should be realized, however, that 90 per cent, of the commodities referred to were primary products, such as bacon, eggs and fruit, the production of which is . subject- to seasonal conditions. Whether or not a war were now in progress, the prices of these- commodities would have risen because of adverse seasonal conditions.

The Leader of the Opposition also complained that the Government had kept Parliament in recess with the object of keeping the people in ignorance of what was going on. That assertion was unjust. I am sure that the Government had no such idea in keeping Parliament in recess. The honorable senator then went on to deal with inflation, which he said was being used by the Government as a bogy with which to frighten people who knew little about finance. That is not correct. The Government’s desire is not to frighten people but rather to make them realize that many of these newfangled ideas’ about raising money are, or will be eventually, not a benefit, but rather a detriment to the community. If inflation is the bogy with which we on this side are frightening the people, I can claim confidently that Douglas Credit is something that is being used by honorable senators opposite to. delude the people into the belief that they can get something for nothing. It has been tried over and. over again, and in no instance has it been successful. As an excuse its exponents usually claim that the scheme waa not given a proper trial, or that the credit was not of the right brand. Senator Darcey, who . frequently treats this chamber to eloquent addresses on the subject of finance, which he has studied so thoroughly, likened finance to an aeroplane. He said that an aeroplane, when used in peaceful transport is a vastly different instrument from an aeroplane used as a bomber. In the one instance, there is wise use, and in the other, abuse, of the machine. Similarly, inflation, or moneyless credit, may be wisely used or it may be abused. How is it to be controlled? We had inflation during the last war, and we are sure to have it during this war, but so long as it is controlled, and so long as the importance of the occasion warrants it - I maintain that wartime is a sufficiently important occa-sion - a country is justified in using itAs an everyday instrument of national finance it would not be of benefit to the community, but, on the contrary, would be a source of considerable danger. We have had many illustrations of social credit schemes, and I should like to cite one which occurred on the island of Guernsey in 1811. No doubt Senator Darcey, who apparently has studied this matter very fully, will know something about it. In 1811 the people of Guernsey decided that they wanted a meat market and consideration waa given to a . plan very similar to the social credit schemes propounded to-day. The people wanted £4,500 with which to build the market, and after a great deal of haggling and discussion, construction was undertaken in 1819. Bonds to the value of £4,500 were issued, and they were to- be redeemed in ten years by market rents from the butchers and a customs duty of ls. a gallon on wines and spirits. The market was successfully opened in 1822, but, instead of the debt being liquidated in ten years, as arranged, it was not discharged until 1894, or 72 years later. During that period the butchers had paid rent to the amount of £10,800, and the public had contributed £21,600 in customs duty, so that about £32,000 had been paid for £4,500 worth of credit. Will any of the exponents of the Douglas Credit system tell me how it could be applied successfully to public works, housing schemes, the relief of unemployment, and similar undertakings?

Reference was made by the Leader of the Opposition to the paragraph in the Governor-General’s Speech dealing with the proposal of the Government to amend the electoral law. He accused the Government and its supporters of proposing to do something for its own benefit. 1 claim that, if tie present voting system does not result in a true reflex of the will of the people, the Government is entitled to propose that it be altered. If, as was suggested by the Leader of the Opposition, the Government’s intention in this regard is to give a political advantage to its own parties, it is logical to suppose that the advantage under the present law rests with the parties in opposition to the Government. I maintain, however, that the Government has no desire to gain an advantage at the expense of its opponents. Its one object is to institute an electoral system by which the will of the people may be expressed.

The Commonwealth Court of Conciliation and Arbitration was established for the settlement of industrial disputes. The coal-miners who are now on strike have obtained a decision from the court, but have refused to abide by it. Therefore, there can be no argument as to which side is responsible for the present cessa-. tion of work. Arbitration courts have been brought into being at the instance of political parties of all shades of opinion.

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

– Before there was a Labour party in Australia, industrial arbitration was in operation in New Zealand, and Mr. Kingston had introduced it in South Australia.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– That is so. The coal-miners say that the employers could settle the strike if they wished to do so. Of course they could, if they gave the miners everything they asked for, but that would merely result in the postponement of the dispute. The Prime Minister (Mr. Menzies) had the courage to address the miners on the northern coal-fields ‘last Friday. When will Mr. Curtin, the Leader of the Opposition in the House of Representatives, go to the coal-fields in order to address them?

Senator Ashley:

– Ask Mr. Curtin.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– 1 am addressing the question to the people of Australia.

Senator Sheehan:

– The Arbitration Court should go there.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– The court has given its decision, &ad the miners are at liberty to appeal to the court again, if they wish to do so. Labour members of this Parliament had an excellent opportunity a few days ago to do something of a practical nature to settle the strike. They might have requested the parliamentarian from Great Britain.. Mr. Grenfell, M.P., who visited Canberra last week, to address the miners. He is a miner and a member of the Labour party in Great Britain who has risen from the ranks.

Senator Sheehan:

– He has also led a miners’ strike.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– He may have done so, but, if he made an impassioned appeal to the miners on the northern coal-fields similar to that made by him in this chamber, there would be something radically wron’g with the miners if they did not heed his advice. He could have told them that in Great Britain the miners had voluntarily increased their hours of employment to 60 hours a week, and were prepared to go even further than that if the authorities required them to do so.

Senator Ashley:

– That was in France.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– No, it was in England.

We have heard a good deal about the menace of communism. Doubt seems to have arisen in the minds of certain honorable senators as to where the Communists are, but we need have no further doubt upon the matter. A non-Communist Labour party has recently been formed in New South Wales, and this surely shows where the Communists are to be found. Senator Keane referred vaguely to this matter. He said that there might he a few Communists here and there, but he was not sure about it. He cited the Corio by-election as furnishing an indication of the power of the Communists in Australia.

Senator Ashley:

– They are the friends of the party opposite, because they helped the Government at election times.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– Whether they help the Government parties or not, they certainly vote for the Labour candidates. Senator Keane mentioned that, out of a vote of about 56,000, there were 2,000 Communist votes, showing that one elector in every 27 in Corio was a Communist. I point out, that, at the time of the Russian revolution, when the Soviet Government took control, the population of that country was over 150,000,000, and it was reliably estimated that the Communists numbered only 2,500,000. There was only one Communist among every 600 people, but’ they turned Russia into the Soviet Union. If that is a fact -

Senator Ashley:

– The honorable senator’s figures are not correct.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– I said that, the Communist candidate in Corio received about 2,000 votes out of a total vote of 56,000. Actually he had a little more than .1.800. It ia not necessary to search far to discover where the Communists are. One has only to read the report of a meeting that was held in the Northern coal-fields on Friday last. Mr. T. Hoare, the president of the miners’ organization, is reported to have said -

Russia has the only true Hag - the Red Flag /or the blood of the workers. All other Hags are just indications of geographical boundaries.

Then Mr. Orr, the general secretary of the combined Miners Union, said -

I have spent a lifetime studying Communism - aud it is the only thing for the workers.

Senator COURTICE:
QUEENSLAND

– Does the honorable senator associate us with those sentiments ?

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– I take it that the honorable gentleman does not dissociate himself from the activities of the coal-miners?

Senator Collings:

– Mr. Orr is not a member of our organization.

Senator JAMES McLACHLAN.;Are not the coalminers constituents of Labour senators? Can our friends opposite dissociate themselves from these gentlemen without dissociating themselves from the rank and file of the Miners Union?

Senator Collings:

– Those men do not belong to our party.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– Do not the coal-miners belong to the Labour party?

Senator Collings:

– Of course they do, but the honorable gentleman was speaking of two men.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– The truth is that the coal-miners who belong to the Labour party are controlled by these men.

Senator Sheehan:

– What does the honorable senator suggest should he done?

Senator Dein:

– Clean up the Communists.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– 1 take the following from the speech delivered by the Leader of the Opposition a few days ago. Referring to Senator Wilson, the Leader . of the Opposition said -

am prepared to credit Senator Wilson with having no evil intent. Probably he is suffering from fear, and not without very good cause. His world cannot go on much longer; our world - the world of the people we represent in this chamber - cannot continue much longer as it exists to-day. I have often declared in this chamber that there must be a new order of society, externally and internally, and a new world based on a better foundation of righteousness and justice. I have often warned honorable senators opposite, and . 1 warn Senator Wilson again this afternoon, that to-day his profits are in jeopardy; tomorrow it will be his capital, and, before long, unless we can bring both the external and internal wars to a successful conclusion, the very lives of those people who represent vested interests - the profiteers and exploiters - will be in danger -from those who are dispossessed of all things that make life worth while.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– The necessity to provide air-raid shelters and for the evacuation of the civil populations from great cities has also increased the cost of conducting a war. I am sure that the Leader of the Opposition and the people generally will agree that Great Britain is making wonderful preparations to meet the post-war problems. In 1915 the Mother Country was spending less than one-fourth of its revenue from taxation in order to meet war costs. Today, it is spending more than one-half and we have been told that the Government is prepared to go still further; so there will be, when the war is over, less leeway in social legislation to make up. let us examine the economic position of Great Britain, the Dominions and our Allies. After the last wat Britain’s debt to the United States of America was £2,300,000,000. The whole of the debt has not yet been paid. Summing up our resources for this war we find that Britain has a gold reserve of £500,000,000 ; France, £750,000,000 ; Canada, £54,000,000 ; and the other dominions £130,000,000, making a total of £1,434,000,000. Apart from gold reserves we have cash balances in the United States of America at the present time amounting to £317,000,000. One-half of this amount belongs to Great Britain. We also have liquid securities amounting to £355,000,000, and non-liquid assets amounting to £385,000,000, so that with our securities, cash balances and gold reserve we have in hand £2,490,000,000, as compared with £1,600,000,000 in 1914. The total of American sales to the Allies in the ‘last war was £2,300,000,000. If, at this moment, we owed that amount to the great Republic we could actually pay cash and still have a surplus. Also our trading position is better. Great Britain is buying less from the United States of America. The Empire is supplying itself with many essential commodities which we had to buy from the United States of America in the last war. For instance, in the 1914-18 war we paid to the United States of America £200,000,000 for wheat. In this war the Dominions are supplying the whole of the Empire’s requirements of wheat. Between 1914 and 1939 the annual gold production of the Empire increased from 14,000,000 oz. to 21,000,000 oz., or an increase of 50 per cent. It is unnecessary for me to inform the Senate that during that period the price of that commodity also has increased by 150 per cent. We have not only a substantial gold reserve, but also the annual production and price of gold have increased considerably. Between 1914 and 1939 the production in the Dominions of nickel, copper, aluminium and rubber has expanded from 277,500 tons to 2,117,000 tons. Materials which during the last war were purchased from foreign countries are now produced within the Empire. The production of fuel oil within the Empire remains at about 6,000,000 tons annually, whilst about 25,000,000 tons is purchased annually from companies operating outside the Empire but in which British capital is invested. These figures are very heartening because they show that, apart from having men of the necessary calibre to render excellent service in the defence .of the Empire, we also have the money and materials. The Empire is in a sound economic position and should, if necessary, be able to starve the armies under Hitler, and I would prefer them to be brought to a state of starvation rather than that human beings should bc slaughtered. The economic position is strongly in our favour, and I sincerely trust that this great conflict will soon terminate to our complete satisfaction. We, and those who have preceded us, have enjoyed such uninterrupted freedom that we regard our freedom as an inherent right, but it could be lost. I trust that it will not be; but if it should be we should not add to the humiliation of defeat a realization of the fact that we had not done our best.

Senator CUNNINGHAM:
Western Australia

– I followed with interest the Speech read by His Excellency the Governor-General in opening this session of Parliament, and since then I have studied it with an equal measure of interest. The Speech, which conveys a message to the people of Australia, demonstrates clearly that we are faced with our share of responsibility in the terrific war which is now being waged in Europe. It also demonstrates to us that, although we may not be in a theatre of war, other nations not now at war are enshrouded in war clouds. Fearful as conditions now are, something even worse may be in store for the nations of the world. Civilization is faced with a dreadful prospect. A few months ago when we were carrying on our ordinary vocations, it seemed impossible that within such a short period the nations which wo regarded as civilized would be at deathgrips, and using all kinds of infernal engines for the destruction of mankind. That is the picture that is presented to us to-day. We have been informed that the people of Australia will be asked to pay heavier taxes in order to enable the Commonwealth Government to sustain its war effort. We all know that that means not only taking away from the people the money which they now have, but also that the taxpayers are to be asked to mortgage their future earning capacity. That is an enormous responsibility; but the position has to be faced. I agree with those who say that we can pay tribute to the Prime Minister of Great Britain for using every effort to avert war. Regardless of what has been said concerning the attitude of the Labour party towards this conflict, that party is prepared to do its share to assist in the defence of this country, and to help other self-governing dominions within the British Commonwealth of Nations to do their part to protect civilization. The members of the Opposition are fully aware of what may happen, and efforts must be made by all parties to safeguard the Australian people and at the same time assist those who are fighting overseas.

There are other matters of more or less local concern with which we can deal. The Treasurer (Mr.

Spender) has - announced that in all probability amending legislation will be introduced to repeal the gold tax. I am not surprised because when the legislation imposing the tax was before the Senate some months ago, I pointed out that it should not be allowed to pass in the form in which it was presented to Parliament. I said that the imposition of the tax would interfere seriously with the present and future development of the gold mining industry; but I shall reserve further comment on that subject until the legislation foreshadowed is before the Senate. Reference is also made in the Speech to the Government’s price-fixing policy, and whilst I believe that the action taken has done a great deal of good in the interests of the community, there have been many breaches of the regulations. Members of the Opposition will endeavour, not only in the Senate, but also by getting in direct touch with the Commissioner, to bring under his notice the fact that some persons in Australia are taking advantage of the present situation to extract money to which they are not entitled from the pockets of the people. Many cases have been brought under the Commissioner’s notice and others will be ventilated shortly. It is the responsibility of the Government and also our duty to see that the profiteers are not allowed to amass wealth when the nation is fighting to preserve its existence. This £s not a time when unscrupulous persons should enrich themselves at the expense of others. A matter which has been brought under our notice by the Treasurer was raised by members of the Opposition some time ago. He has warned mortgage companies against increasing rates of interest, and promises that drastic action will be taken unless they act differently. Warnings are not much good to such persons; legislation should be passed by this Parliament without delay in order to safeguard those who are burdened with heavy mortgages.

As a member of the Labour party, I should like to express my personal views on the subject of defence. I am not satisfied with the efforts made by the Government for the proper defence of Australia. I believe that it should do a great deal more. The defence of the country is tie first responsibility of the Administration.

– A proper system is that advocated by the Australian Labour party which proposes to utilize not only the cash reserves and the credit but also the material and manpower of the country, having regard to the defence requirements of other self-governing dominions within the British Commonwealth of Nations. I also urge the Government to give immediate attention to problems likely to arise immediately after the conclusion of the war. Now is the time to get to work on such matters. The conflict may last for many years; it may end very soon. Nevertheless we must build for the future. If we wish to avert confusion in the economic life of the people we must now prepare to deal with post-war problems. The Government should make a pronouncement on this matter. We should be advised of what proposals it has in mind to deal with post-war problems. The people need to be assured on such matters if we hope to maintain contentment amongst them. We should not leave them in a state of uncertainty. I should like to know that the Government is utilizing every means in its power to ensure that the people shall not be let down when hostilities have ended. I do not blame the Government for all that happened during the depression. I know that governments had very little to do with the depression which brought so much misery and trouble on the world in 1930. That development was managed by international financial manipulators who control and, indeed, govern most countries. I have no doubt on that point. Although I cannot completely follow Senator Darcey in his advocacy of monetary reform, I commend that honorable senator for bringing this subject so much before the public. He has visited many country centres in order to speak on this matter, and has thus enabled the people to do their own research on the subject. We all are very much interested in the problem of monetary reform. Every honorable senator, I believe, has made up his mind that action must be taken to bring about reforms in the present monetary system. Such a development must come in the natural order of things. Our own economic welfare, as well as our relations with other countries, demand* such a reform.

Senator Wilson appealed to honorable senators on this side to take action to rid the country of Communists. Hedeclared that thousands of working men in Australia are controlled by a small minority of Communists in our midst. The Leader of the Senate (Senator McLeay) also appealed to honorable senators on this side to take action against the Communists. He declared that upon us was cast the responsibility of taking political action against the communistic element in the community. What does the Minister mean? He also said that the Communists were retarding the nation’s war effort. Senator Wilson said the same thing. We have been asked to take political action against the Communists. Surely honorable senators opposite realize that wo as an opposition are not able to enact legislation; that is the responsibility of the Government. I point out that these charges are levelled against us to-day although the war has been going on for eight months. Honorable senators opposite claim that foreign influences are at work in this country retarding our war effort, but during that time the only thing which the Government has done to suppress such influences has -been to prohibit the publication of a few communistic newspapers. Yet to-day it asks the Opposition to take political action against the Communists.- The responsibility of dealing with disruptive elementsin the community belongs to the Government, and I should like to know what it proposes to do in this direction. It possesses full constitutional power to deal with the Communists and it should, if necessary, introduce legislation immediately to safeguard the interests of this country against such disruptive elements.

Senator Dein:

– “Will the honorable senator support the Government?

Senator C CUNNINGHAM:
WESTERN AUSTRALIA

– Of course. Last session we were called upon to pass the National Security Act from which the Government derives almost all the war powers that it requires. Yet no action was taken. Now the Minister asks this party to take political action, but such action can only be taken if a party has sufficient numbers in both Houses of Parliament to pass the legislation which it initiates. The present Government has the power to do that. Irrespective of what honorable senators opposite may say, the statement that Communists control the Labour party is untrue.

Senator Dein:

– They do in New South Wales at least.

Senator CUNNINGHAM:

– Not only during the past eight months, but for many years, the Labour movement has been purging its ranks of not only “ red “ elements, but also other undesirable influences.

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

– Without much success.

Senator CUNNINGHAM:

– We have been most successful. We have been far more successful in purging our ranks of Communist elements than have the United Australia party and the Country party in their endeavours to control the law-breakers who have brought these parties into disrepute by the evasion of our arbitration laws. Law reports contain list after list of unscrupulous employers who have not only’ been breaking arbitration laws’, but have also called upon youths to sign false declarations as to the amount of money they have received weekly. Is it fair to blame any government or any party for the misdeeds of these* people who are out to make greater profits? Honorable senators on this side of the chamber rarely impute dishonest or questionable motives to the people’s1 representatives on the other side of the chamber. Yet we are told that we are tainted with “ red “ doctrines, because here and there throughout this great working-class world in Australia, there are some individuals who make statements of an irresponsible character. An examination of the evolution of the Labour movement in Australia will show that a cleansing process is continuously in operation. We are always out for the purification of the rank and file because the Labour movement stands for high ideals which, when put into effect, will raise the standard of living and working conditions, and improve the mentality and culture of the people of Australia. For that reason we cannot allow any poisonous influences to wreck the Australian Labour party.

I should like to refer also to the remarks of the Leader of the Government (Senator McLeay), and also those of Senator Wilson, in connexion with the “ Hands off Russia “ resolution in Sydney recently. The fact is that the conference in question carried a motion declaring a policy of non-aggression towards all neutral countries - countries with which we are not at war.

Senator Dein:

– Russia was the only country mentioned.

Senator CUNNINGHAM:

– The resolution referred to all neutral countries, including Russia.

Senator Dein:

– I repeat that Russia was the only country mentioned.

Senator CUNNINGHAM:

– I ask Senator Dein to be fair. All countries with whom we are not at war, including Soviet Russia, were included. I am not a Communist nor do I sympathize with Stalin; I do not believe in Russian methods; I am hostile to the procedure adopted by what are referred to as Communist governments; I do not support fascism; I have a tremendous dislike of nazi-ism ; therefore I cannot have levelled at me a charge of being a “ Red “. I am not a “ Red “ ; I never have been, and I never shall be. But not many years ago a British Cabinet Minister sponsored an invitation to Soviet Russia to enter the League of Nations. As a result of Russia’s acceptance of that invitation, the league lost Italy and Japan, and, in addition, Germany said that it was useless to continue its membership of the league if Soviet Russia were to be admitted.

Senator Foll:

– Italy left the league because of the Abyssinian affair.

Senator CUNNINGHAM:
WESTERN AUSTRALIA · ALP

-HAM.- Mr. Anthony Eden supported the invitation which led to the acceptance of Soviet Russia as a member of the League of Nations. We also know that representatives of France and Britain sued for favours from Russia just prior to the announcement of the Russo-German pact. I do not blame them, because nations have to do these things. Similar negotiations are in progress to-day. Shortly after the peace ‘between Russia and Finland was signed the British newspapers announced that the tone of the Moscow press, previously very pro-<German, had changed considerably and was more favorable to France and England. Efforts to reach an understanding with Russia are still being made, and a few days ago a Cabinet Minister stated in the House of Representatives that Australia had no quarrel with Russia. That statement may be found in Hansard. It was published to the world by the newspapers as the statement of a responsible Minister. In making that statement, the Minister and the Government knew quite well that international relationships are continually changing, and that those who to-day are our enemies might to-morrow be our friends. Who knows what tomorrow has in store for us? He who can prophesy what will happen in international affairs six months hence is indeed a wise man.

I have made my position clear. I have no wish to be an ally of Russia I do not stand for the Russian system headed by Mr. Stalin; I would not support or encourage any representatives of Stalin in Australia, and I advise the people of Australia to give such representatives, if any, a wide berth; I support whole-heartedly any action taken by this Government to safeguard the interests of this nation against the insidious influences of any foreign power. En saying that I speak in harmony with my colleagues of the Labour party.

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

– Does the honorable senator agree with the “ Hands off Russia “ resolution ?

Senator Lamp:

– Does Senator A. J.

Senator ALLAN MacDONALD:
Western Australia

– It is only natural that the first expression by His Excellency should have been in connexion with the war and the part . which the Commonwealth of Australia will play in it. I congratulate the Government upon the declaration by the Prime Minister (Mr. Menzies) immediately following the Corio by-election. Up to that time there was a feeling abroad, and I shared it, that, seven months having elapsed since the declaration of hostilities, Australia was not doing what many , people considered to be its full part in helping the Mother Country. The Prime Minister stated that Australia’s expeditionary force would be expanded immediately to a corps of two divisions, with the addition of the necessary corps troops. That is a substantial first contribution by this country towards the defence of the Empire. The declaration has no doubt had a timely effect on other nations, especially those which continue to imagine that Great Britain is a country of only 46,000,000 people. They overlook that there are also India and the other Dominions, which demand that they be taken into account when lesser breeds forget the extent and power of the British Empire. They seem not to have profited by their experience of 25 years ago, when nearly 3,000,000 Empire troops, apart from those of the Mother Country, went to the Empire’s assistance. Possibly that number, and half as many again, will be in the field before this struggle is brought to a conclusion. If Germany or any other nation continues to flout the peaceful endeavours of Great Britain and France, they must expect to reap the full results of their perfidy in again involving the world in a holocaust. For that reason I thank the Prime Minister, on behalf of the people of Australia, for offering these additional troops, as well as our complement of the Empire Air Scheme, in order to restore world equilibrium, so that there may be some hope for calm and peace in the future.

Many proposals such as we are accustomed to hear in the GovernorGeneral’s Speech are missing on this occasion, and the charge could be made that the Speech contains little or no indication of what honorable senators may expect during this session of Parliament. If one reads between the lines, however, there is a wealth of possibilities in regard to the work that the Senate may be called upon to do in the next two months or so. With regard to taxation, particularly, there will, no doubt, be much heartburning ; but the war situation has to be faced, and the only way to do it is with a full purse. I draw attention to the continuous kite flying from Canberra, and the threats of increases of all sorts of taxes, which have a disturbing effect upon commerce generally. The people of Australia know that taxation will naturally have to be increased for war purposes, and it is undesirable to harp upon that fact. For heaven’s sake, let us know the worst, so that the people may become reconciled to it at the earliest possible moment, and adjust their affairs accordingly.

Honorable senators will recall that last session a good deal of discussion took place regarding the gold tax. During the recess I have endeavoured to move the apparently immovable Treasury towards relaxing certain conditions, which, owing to the incidence of this tax, have a rather serious effect on certain low-grade mining propositions in Western Australia. It is urgently necessary to assist these mines to keep in operation, because most of them provide the sole means of employment in their respective districts, and, should they cease operations, disaster would overtake the employees, their families and the tradespeople who supply their needs. I suggest to the Leader of ;he Senate that further representations be made to the Treasurer to assist Western Australia in this regard. In respect of one mine the increased benefit enjoyed from the excess price of gold during the last seven months’ operations has been about £6,000, of which no less than £4,500 has gone in increased costs of the treatment of ore. The actual increase has been ls. 6d. a ton. No added cost has been met as regards head office administration or other incidental expenses, which are usually debited on a twelve months’ basis at the termination of the taxation year. I am dealing only with a broken period. It should not be particularly difficult for Treasury officials properly to supervise an exemption in a case such as that I have mentioned. The closing down of this mine would mean the collapse of one of our smaller mining centres. I hope that the Treasurer will exempt such mining enterprises from the payment of the gold tax.

Supply and Development (Sir Frederick Stewart) would favour an extension of the scheme to all States.

Senator AMOUR (New South Wales) [5.30J. - Regardless of what has been said by honorable senators opposite I do not believe that the Government is acting with sufficient expedition to provide for the adequate defence of Australia and the territories under its control. Although the Minister for the Interior (Senator Foll) spoke at some length on the policy which the Government has adopted with respect to the production of flow oil, which is the life-blood of any nation, its energies are not being exerted in the right direction. I am not in any way concerned with the schemes mentioned by Senator Arthur, and I am not interested in the production of flow oil by small companies in which persons invest their capital, or by major oil companies which have tremendous resources. The time has arrived when the Government itself should take immediate action to discover flow oil in Australia, instead of being guided by the recommendations of the companies. 1 2-emind the Minister for the Interior, who said that Mr. Steinbuchel will have to leave Australia by the 4th June, that if is the responsibility of the Government to protect those who have invested their capital in the companies formed by that gentleman. I do not know whether Steinbuchel possesses any special equipment or whether he is merely what is known as a “ diviner “, but the persons who have invested their money in the companies which he has formed should be protected. If he says that oil can be found at a certain depth, he should be permitted to continue operations, even if it be necessary to protect him from the activities of the oil combines. If oil be found at the depth predicted the Government should pay this man the prize of £50,000. Indeed, if he were successful, I suggest that the Government should pay to him a much bigger sum per annum in order to retain his services for the nation. I put that proposition seriously. I have no confidence in the Government’s geological advisers. I recall that on one occasion, when Dr. Ward gave a lantern lecture in the Senate club room on the search for oil in Australia, the projection machine was operated by a Japanese.

To mo that was most astounding, particularly when most of the operations on the fields were under guard. It is evident that the major oil companies have been responsible for the failure to discover flow oil in this country, or to produce oil from coal or shale. Must I repeat over and over again what happened in connexion with the production of oil in the Wolgan Valley in order to demonstrate that those companies are doing their utmost to prevent the production of oil in Australia? I am confident that oil will be produced here when these companies find it convenient to do so. That will be a glorious day for this country, but we should not wait for the major oil companies to crown our efforts with success. If Steinbuchel is genuine lie should not be deported. The Minister for the Interior (Senator Foll) suggested that he is a fake. If this be so he should be put in gaol, because it is the duty of the Government to protect those people throughout New South Wales, Victoria and South Australia who have subscribed to his companies. If he is found to be genuine the Government should use his services; if he is not genuine it should deal appropriately with him. The Government is not seriously concerned in the search for oil. I base that view on the belief that the Minister for Supply and Development (Sir Frederick Stewart) is most anxious that no action should he taken to increase oil production in this country. Recently the Bankstown Municipal Council received a circular which was distributed by another local authority to all of the local governing bodies throughout New South Wales. The Town Clerk of Bankstown wrote to the Minister for Supply and Development supporting the representations made in the circular, which was as follows: - Dear sir,

I am directed to seek the co-operation of your council in urging the Federal Government to make available portion of the increased revenue from the petrol tax for the exploitation of the extraction of oil from coal-shale as a necessary and urgent defence measure.

Australia depends entirely upon ocean-going transport for the whole of its oil and petrol supplies. In the event of a determined enemy blockade, this important link could be broken, transport would become immobile and the wheels of industry idle within a very short period.

After the last war it was generally conceded that petrol shortage, due to the Allies, effective blockade, was primarily responsible for Germany’s collapse.

During the years following the last war, all nations, other than Australia, were actively engaged upon consolidating oil supplies and Germany now leads the world in the production of synthetic motor spirit from coal. Spain legislated for the Government control of the refining and distribution of oil. Italy spent vast sums in seeking further oil production in Albania, Northern Africa and the Near East. France trebled her oil production in the Near East. The growth of Russian oil production has been the main lever for her various trade pacts and Overseas credits. Japan’s military occupation and control of the oilfields of Sakhalien bland and the exploitation of Manchurian shale deposits enables petrol to be sold in Japan at about one-third the price obtaining in Australia. Diplomatic activity and military stategy in the present war all pivot upon oil supply. In the face of all this evidence, the lethargy of the Federal Government in neglecting a definite attempt to make Australia in some measure independent of overseas oil supplies, is very difficult to understand.

It is a generally accepted geological fact that the prospects of the discovery of flow oil in Australia are negligible. Australia has unlimited coal supplies and a number of dormant shale deposits. The Newnes Shale deposit ( the only one being worked ) will produce shale with a content of 102 gallons of crude oil per ton, which in turn will produce 60 gallons of petrol, 30 gallons of fuel oil, together with other valuable by-products. Other shale deposits exist at Baerami, Barigan, Burragorang, Wollar, Murrurundi, Marrangaroo and in many parte of Queensland. Coal deposits, rich in oil content, everywhere await development.

The importance of awakening public interest in the necessity for a determined effort to produce oil from coa] and shale, both in the interest of national security and for the economic advantage which must accrue from the establishment of an important new major industry in time of war or in time of peace, needs no elaboration.

Council will very much appreciate the valued co-operation of your council in forcibly bringing this matter under the notice of the Federal Government, per medium of the Federal Parliamentary Representative of your district, urging that Australia produce Its own oil and petrol supplies.

Thanking you for your assistance in this matter.

In the first paragraph of the circular will be noted a reference to “coal-shale”. It is evident that this reference was an error. It should have read “coal or shale”. But the Minister based the whole of his reply on this error. I suggested to him that the way to comply with the representations made in the circular would he to allocate a sum from consolidated revenue for this purpose. His reply was-r-

My dear Senator,

I have to acknowledge your letter of the 4th instant, with enclosures from the Bankstown Municipal Council.

– The honorable senator has the Essington Lewis complex.

Senator AMOUR:

– The honorable senator has that complex, and he will retain it for just so long as his patriotism remains the same as it has been in the past. That patriotism starts with profits for the rich, and there it stops. In the interests of those who are deriving wealth from this war, the Government is sending men overseas as cannon fodder when their proper place is in the factories. This action enables people such as Essington Lewis to exploit the community, because the sending- of men overseas creates the demand for the profitable munitions. The Government should have heeded the request of the Leader of the Opposition (Senator Collings), expressed at the beginning of the war, that the manufacture of arms and munitions should be retained in the hands of the Government.

His Excellency referred to what he called “ a full measure of defence The Government has conscripted certain categories of youths for service in the Militia. These lads are paraded twice a day in the camps, and urged to volunteer for service abroad with the Australian Imperial Force. In this connexion, the Government is employing tactics similar to those used during the last war. When the militiamen are paraded and asked to volunteer for the Australian Imperial Force, certain men - urgers or buttoners - step forward. These, however, are only dummies, and are switched from company to company in order to give the same performance, and so encourage others to volunteer. The Minister for the Army (Mr. Street) has denied the existence of this practice, but despite his protestations, it is carried out, and I challenge contradiction on this point. I do not suggest that representatives of the Government go into the military camps and urge the boys to join up for overseas service, but there are in these camps, certain jingoistic officers who are responsible for this work. I fear that there will be a general call-up, which will, in effect, be conscription. The boys who are now conscripted for service in the Militia will be forced to go to the war. Once again I warn the country against the enemy within. There is a sinister influence at work to get these hoys out of the country. Is that what is meant by “ a full measure of defence “ for Australia ? Should the Government be unable to secure sufficient volunteers for the Australian Imperial Force, we may again see in operation a system which was in- augurated during the last war, when proclamations were issued and posted at military establishments and police stations, stating: -

Whereas by the Defence Act 1903-1915 it is amongst other things enacted that in time of war it shall be lawful for the Governor-General, by Proclamation, to call upon persons liable to serve in the Citizen Forces to enlist and serve as prescribed:

Dear Sir -

The society’s solicitor has made application to the Federal Treasurer under the National Security (Capital Issues) Regulation on behalf of the Permanent Building Society for permission to start business.

You would be able to give the application a push along and this would be very much appreciated by the local lads of the Building Society Board and building trade, and yours truly,

A. Land us.

In Bankstown there are still SOO persons out of employment, and I am greatly concerned about the action of the Commonwealth Government in this matter, which has had the effect of retarding employment, although the Speech by His Excellency the Governor-General was so framed as to suggest that everything possible had been done to provide for the defence of Australia. This country cannot be adequately defended, if thousands of men are out of employment; therefore, I regard the speech as mere political propaganda.

When I heard the speech by Senator Abbott regarding international affairs, I thought that it would be a good thing if something could be done in the direction indicated by him for the prevention of war. I happened to refer by interjection to the Menzies Government, and the honor able senator slightingly suggested that, as he was speaking of matters of international moment, it was inappropriate for me to refer to such local matters as unemployment at Bankstown, but I consider that it is of the utmost importance to deal immediately with this problem. We should do something to relieve those workers whose cupboards are bare, and whose clothing is far too scanty to enable them to face the rigours of winter. The honorable senator and other supporters of the Government would be better Australians if they displayed greater readiness than they do to consider the best means of promoting the welfare of the unemployed. The success of the building society operations at Bankstown would give impetus to the local building trade, in the success of which I am particularly interested. The Government would have the people believe that it is doing everything possible to ensure the adequate defence of Australia ; yet thousands of men and women are unemployed, and they and their’ children have insufficient food and clothing. Nothing is more demoralizing than keeping able-bodied men and women in idleness for long periods. What is morally wrong cannot be economically right or politically sound. It is essential to put into employment all the men and women who are anxiously seeking it. Sitting suspended from 6.15 to 8 p.m.

Senator BROWN:
Queensland

– Many years ago, when I was a boy in England, I read over the editorial in the local newspaper the following lines, which had been dedicated to an old crow : -

Fond of the speculative heights,

Thither he wings his airy flight, And thus securely sees

The bustle and the raree show That occupies mankind below, Secure and at his ease.

Those lines came back to me while I was listening to the speeches of honorable senators this afternoon. In the security of the Senate we sit at out ease, and we should be able to discuss, calmly and deliberately, the various issues that come before us. On the other side of the world nations are being wrecked and men are being blasted out of existence. Knowing of this we should keep the debate on a high plane. Our friends opposite have on many occasions told us that we should do this. Of- course we all wish that that were possible. I do not suggest, of course, that we are all so many Jekylls and Hydes; but somehow when men get together in debate, they say things which they would not say in private conversation. One gentleman I know is normally very calm, yet when he rises to speak in public ho becomes almost a revolutionary. I think sometimes that this change in men is, perhaps, psychological. We can find examples of this phenomenon amongst Fascists, Communists, and even amongst members of the United Australia party.

In the Speech of the Governor-General which, I presume, was written by the Prime Minister (Mr. Menzies) or someone deputed by him to do so, three matters are specifically mentioned - the colossal conflict on the other side of the world, the cunning Communists, and the coal strike. I am somewhat disappointed with the Speech, not because of what it contains, but because of what is not to be found in it. The Prime Minister some months ago declared that the right thing to do during this war was to carry on as usual. It would appear, however, that the right honorable gentleman has not followed his own precept, because he has left out of the Speech many matters which might very well have been included.

Sometimes in my pessimistic moments I think that we shall never be free of international conflicts, because wars are, in some respects, biological in their origin. There is, I believe, in most of us, a pugnacious impulse which must have an outlet. I am reminded of the truth in the following lines by Edwin Arnold in his Light of Asia. The gentle buddha noted. -

How lizard fed on ant, and snake on him, And kite on both; and how the fish hawk robbed

The fish tiger of that which it had seized; The shrike chasing the bul-bul which did chase

The jewelled butterflies; till everywhere Each slew a slayer, and in turn was slain. Life living on death. So the fair show Veiled one vast, savage grim conspiracy Of mutual murder, from worm to man, Who himself kills his fellow.

It seems inevitable that men will always display this fighting spirit. It is pos.sible, though perhaps this is wishful thinking, that some day we may sublimate our individual or national pugnacity and we may be able to direct it on to a higher plane, eventually treading the path to a better world. We may thus evolve a form of society in which it will be possible for every individual to get the best out of life without doing harm to his neighbour.

We on this side believe in a real democracy. We are strongly opposed to totalitarianism. We stand for democracy - not only political democracy, but also industrial democracy. We believe that in fighting Hitler-ism Ave should endeavour to establish in this country a really democratic form of government so that we could prove to Hitler or any other dictator that we have solved all social problems without doing violence to any individual. I do not think that we have yet gone very far along that road. We have in our midst a number of sentimentalists, who tell us that the day is coming when we shall have a universal language and shall abolish armaments; that, in fact, we shall achieve such a measure of amity among the peoples of the world that it will be possible for one small army to police international law. We have such idealists in this chamber - honorable senators who use nice language and speak almost with tears in their voices when speaking of the world that is to come. But when we are discussing Australian industrial conditions, and when it is a question of establishing a real democracy, in which every citizen of the Commonwealth will enjoy what is his just due, these, gentlemen display an extremely pugnacious spirit and almost evince a desire to crack someone’s skull, particularly the skull of unfortunate workers who dare to demand a betterment of their conditions. Senators Wilson and Abbott have lately given us their conception of the new world order -

Till the war drum throbbed no longer, and the battle flags were furled

In the Parliament of man, the Federation of the world.

But there was very little sentiment about these gentlemen when they came to deal with the coal strike. They declared that “we must deal with these people “. They were, of course, referring to the terrible Communists who, we are told by some, are in control of the coal-miners. In this Parliament we have “ Shoot-‘ em down “ Thorby and “ Cannon-ball “ Cameron. Both these gentlemen would counsel the use of force against the workers in this strike. I have no doubt that Mr. Archie Galbraith Cameron and Mr. Thorby have some sentimental ideas about the future world order but their immediate need, apparently, is to come down with a heavy hand upon those workers who are struggling at the present time to uphold the original decision of the Arbitration Court.

I would call the attention of Senators Abbott and Wilson, Mr. Thorby and Mr. Cameron to the fact that there is something more in this fight on the coal-fields than the adherence, by coal-miners, to the lead of men who owe allegiance to the Communist faith. No one can persuade me that thousands of men will vote almost unanimously in favour of a strike, knowing full well that it will put them on the bread line and cost them the loss of wages for many months, merely to follow some will-o’-the-“wisp Communist who is obsessed with the doctrine of Stalinism. I do not believe that Mr. Orr or any other leader of trade unionism has such authority over the coal-miners as to persuade them, against their will, to strike against an award of the Arbitration. Court.

Yesterday in the Sydney Domain, I listened to a lady speaker, who is a familiar figure at these gatherings. Behind her was the Union Jack. I understand that this lady, Mrs. Thomas Walsh, formerly Miss Adela Pankhurst, is now crusading under the auspices of the Guild of Empire. When I met her first, 25 or 30 years ago, she was a very active member of another political faith. As a matter of fact she has run the gamut of political beliefs. At one time she was a red-hot socialist. To-day she has other views. But the lady is always interesting, and I was impressed by what she said on Sunday. She told us that the Government would be doing wrong if it attempted a policy of repression in this dispute, because, she added, in the coal-fields areas there were thousands of men who had been cavelled out of jobs in the mines and thousands of young men who had no hope whatever of getting employment in the mines. A spirit of hopelessness permeated all these workers and the urgent need was for the Government to convince these men that they had a solution of their problem. She said further that it was a mistake to suggest that a few Communists were controlling and ruling all the coal-miners in New South Wales, and she declared that, as soon as a solution of the economic problems in the coal-fields district was in sight, the influence of Communists, Fascists or Nazi agents would disappear. The remedy for the present trouble was economic security and the right of every man to earn a living in consonance with Australian standards.

I should like to impress this fact upon those Government supporters who are too prone to declare that all this trouble on the coal-fields is due to the influence of Communists. Despite our wealthproducing powers and despite our capacity to feed, clothe and educate our people, a vast number of workers are not to-day getting a square deal. I am supported in that contention by Bishop Moyes, of Armidale, who, according to a paragraph which appeared in a Sydney newspaper, interviewed some of the coal-miners and their wives. He said that the workers did not trust the bosses and the bosses did not trust the workers, but he was impressed by the straightforward sincerity of the representatives of both parties. He contended that he could not see how the problem could be solved by emphasizing li.o existence of an Arbitration Court. Bishop Moyes, who spent a good deal of time on the coal-fields, conversed with the rank and file, and even went down some of the mines, concluded his state-‘ ment with these words -

Some of the miners with whom I conversed had opposed the strike, while others voted in favour of it; but all were convinced that there was a massed feeling on the men’s part and that the strike was not the result of agitation by a few.

Senator Ashley:

– And expended almost entirely in Victoria.

Senator BROWN:

– That may be; but, no matter from which State a man hails, if he is an Australian citizen and willing to work, employment should be found for him.

Communists are produced because of the intensity of the economic struggle. Give the workers economic security, and the Communist bogy will be slain. If the statement in the tory press that the huge sums being collected from the people are not being expended as rapidly as they should be., thus reducing unemployment, is correct, there is a grave fault somewhere. We should be informed whether the accusations in the articles on this subject published in the Sunday Sun, the Brisbane Telegraph and the Courier-Mail are justified. It appears that full use is not being made of the services of the people for the prosecution of this war against totalitarianism. If that be the case, it is time that another government was put into power to see that Australia wages a 100 per cent, fight for real democracy.

Senator AYLETT:
Tasmania

.- I am disappointed at the tone of the speeches from the Government side of the Senate. The Empire is on trial for its life, and islands in the East, only a few days’ journey from our shores, are also seriously threa tened. Last week Senator Wilson and Senator Abbott congratulated the Government upon its efforts in. prosecuting the war, but I fail to see why the Government should be congratulated. Honorable senators opposite who have spoken on the motion for the adoption of the Address-in-Reply have accused the Labour party of having failed to get rid of the Communists and of having done nothing to settle the coal strike, but are they not aware, that the Opposition has no. power to do these things.?. One industry after another is becoming para:lysed because of the present industrial dispute. What has the1 Government done to bring about a settlement pf it,? The Commonwealth Conciliation, and Arbitration Act charges each judge with the duty of endeavouring at all times,, and by all lawful means, to reconcile the parties in industrial disputes. Whilst I cast no reflection upon the judiciary, I remind the Government of the growing feeling among the people that the judges, of the Arbitration Court have not acted in the interest of the Commonwealth, because they have failed to call a conference of the parties with a view to a settlement. Even if the judges do not consider it necessary to take this action, does npt the- Government consider it desirable to call the parties together? In reply to a question submitted by me, the Government replied that it had no power to dp this; but we know that it has all the power it needs to summon a compulsory conference if only it had the spine to use it.

Senator Dein:

– Could not the trade unions ask for a conference?

Senator AYLETT:

– It is the duty of the Government to make some effort to bring about a settlement. Has not the Government under the National Security Act all the powers necessary to call a compulsory conference of the parties? Neither the mine-owners nor Commonswealth Ministers appear to desire a settlement at the present time.

Senator Herbert Hays:

– I would not say that.

Senator AYLETT:

– If the Government does not desire the dispute to continue, why is no effort made to bring the parties together? Reference has been made by Senator James McLachlan to the fact that the Prime Minister (Mr. Menzies) endeavoured to induce the miners to return to work, but did he also address the mine-owners in order to bring them into line? The whole of the blame for the dispute seems to be cast upon the miners. Senator James McLachlan also asked why Mr. Curtin, the Federal Labour leader, had not also addressed^ the miners. If the mine-owners and the miners could be brought together, Mr. Curtin would be prepared to do anything to effect a settlement of the dispute, but the duty devolves upon the Government to take action.

Senator Dein:

– Who broke the agreementthe owners or the miners?

Senator AYLETT:

– The owners were really the first to break it. It has been pointed out repeatedly in this chamber that Judge Drake-Brockman made an award which was acceptable to the miners, who were quite willing to work under it, but the owners appealed on a technical point regarding the competence of an arbitration judge, sitting alone, to make, an award touching standard hours. That led to the trouble, Senator James McLachlan offered some, comment on the remarks of the Leader of the Opposition (Senator Collings) with reference to this internal Avar. My leader was quite right. The internal war is on to-day, and it has been, going on for many years. Every honorable senator knows what was in the mind of the Leader of the Opposition when he made that remark. If there were no internal war, there would be no dispute in the coal-mining industry to-day.

– I am referring more particularly to the chaos which has occurred in Sydney.

Senator McLeay:

– The Sydney people arc capable of looking after themselves.

Senator AYLETT:

– Had the Minister agreed to the appointment to the Sydney board or committee of a Tasmanian representative who has had extensive experience in connexion with the marketing of apples, a good deal of the chaos and confusion may have been avoided. Is the Minister aware that under the old system apples arriving in Sydney were cleared on the day of arrival, or at the latest by midday on the following day; but under this scheme they have been left lying on the wharf for a week or more before being cleared. It has been estimated that on one shipment alone the Tasmanian Apple Board lost over £12,000 in one week. This was due solely to the muddling and bungling which occurred in Sydney, for which mismanagement was largely responsible. According to a paragraph which appeared in the Queensland Producer, the Leader of the Senate, when Minister for Commerce, said that the estimated crop in the apple-producing States this year would be: Victoria 2,800,000 cases, New South Wales 2,800,000 cases, Western Australia. 2,000,000 cases, and Tasmania 6,500,000 cases. I do not know whether the Minister has been correctly reported, but when it is real.ized that in. 1938 New South Wales produced only 1,234,000 cases, it is difficult to understand how the production could increase to 2,800,000 cases. In 1937 New South Wales produced only 1,400,000. Will the Minister explain how New South Wales could double its production in one year? It appears that the New South Wales crop was overestimated for a specific purpose. As New South Wales did not come under the scheme until the 1st March, or some time later than the other States, the producers in that State were able to dispose of a large portion of their crop at whatever price they desired, and thereby obtained benefits which were denied to producers in other States. In order to show bungling and muddling on the part of those controlling the scheme, I cite the following paragraph which appeared in Fruit Culture, published on the 10th April : -

The charge for stamps and stationery which has been in dispute for so long in this State, has assumed additional importance to agents owing to the necessity of returns to the Acquisition Committee being separately recorded on account sales. It has been suggested to the writer that one agent collected more than £4 on just over 1,000 cases owing to their necessitating more than 160 account sales, while another on 35 cases comprising 22 brands and necessitating the use of 22 account sales collected Us. for stamps and stationery. And this is in addition to the usual commission.

In view of the circumstances in which such charges were incurred it would be interesting to know whether the Minister has the capacity to estimate costs, and whether he has any conception of what the scheme will cost the country.

Senator McLeay:

– Does the honorable senator intend to oppose the scheme next year ?

Senator AYLETT:

– I have no desire to do so, but I trust that those responsible for its administration will exercise greater care and display more business ability than was shown ‘ by the Leader of the Senate when he was associated with it. If those controlling the scheme do not display more knowledge of the acquisition and marketing of fruit than was displayed by the Minister they had better seek the advice of those who do understand the business. It appears that the New South Wales Government prevented its officers from co-operating with other officers and in that way endeavoured to wreck, the whole undertaking. The Leader of the Senate said that the Leader of the Opposition was spineless and lacked the necessary courage to clear the Communists out of this country. The Leader of the Opposition and the Labour party have not the power at their dis*posal to clean the Communists or any other disruptive elements out of this country; the Leader of the Senate and the Government have the .power but. lack the courage to do so. Had the Leader of the Senate, when Minister for Commerce, not been so spineless and had he had the courage to take a definite stand under the National Security Act to enforce his decisions in regard to the scheme, much of the chaos and bungling which has caused a severe loss to the growers of apples and pears would have been avoided, and the baby would not have been left for the present Minister for Commerce to hold.

Senator CAMERON:
Victoria · CP

. [ have read with considerable interest the Speech of His Excellency the GovernorGeneral, because it was delivered under war conditions. In perusing the Speech I find that some of the statements are misleading. For example that relating to unemployment reads -

Bearing in mind the great importance cif preserving and extending employment, my advisers took steps to accelerate defence works by employing relatively unskilled labour, and pursuing a financial policy calculated to prevent industrial retrogression.

That is true up to -a point; but it is not correct to the degree implied. The fact is that considerable unemployment still exists in every State. In Victoria the number of registered unemployed for April was 16,005. In a. time of war it is essential to utilize our man-power in building-up our material resources for the welfare of both the fighting forces and the civil population, and the Government can offer no valid excuse for the present position. Unemployment figures prove that the Government is either unwilling or unable to use the man-power available. One of the effects of this is that children are starving. At the annual conference of the Victorian Teachers Association, held in Melbourne on the 25th January, it was pointed out that between 74,000 and 75,000 school children in Victoria were not up to the Al physical standard, whilst from 8,000 to 9,000 school children suffered from malnutrition in an extreme form. This matter is not new; it has been referred to repeatedly, and forcibly, by honorable senators on this side, who have urged the Government to relieve the position. It has been pointed out that something can be clone in that direction, but very little lias been done.

Senator Herbert Hayes:

– Does the honorable senator say that very little has been done?

Senator CAMERON:

– Yes ; I say also that much more could be done, particularly when we take into consideration the resources which are at the disposal of the Government. It possesses dictatorial powers, by the exercise of which it could provide employment for every man in this country who is able and willing to work. It has the resources whereby it could make it possible for every child to be properly fed. However, it has not attempted to use those powers or resources to the degree that is necessary. Consequently, the statement in the GovernorGeneral’s address on this point is misleading, because the inference to be drawn from it is that everything that could be done in this direction has been done by the Government.

Senator McLeay:

– Will the honorable senator give us his war policy?

Senator CAMERON:

– I am pointing out that the Government is not doing all it can to relieve unemployment, and that the Governor-General has been misled on this matter. Commenting on the statement made at the conference of the Victorian Teachers Association, the Herald, Melbourne, stated -

It is a very shocking thing that teachers in Victoria should have to report from their experience that there are 8.000 or 0,000 children attending our schools suffering from malnutrition in an extreme form. These are the children who cannot, in their present circumstances, go to their class rooms with a smile, pass through their school years in good health and emerge as efficient citizens. The health of the children whom it has to teach is very much the concern of the Education Department, but there was truth in Sir John Harris’s remark if he meant that the remedy lies deeper than in proposals for the provision nf meals at schools, though that might help to ameliorate the situation.

There may be some cases of malnutrition which are due to the ignorance or criminal carelessness of parents, but these are few compared to the number that are due to economic conditions. Children are ill-fed and ill-clothed mostly because their parents have not the means to feed and clothe them better. An inelastic minimum wage system does not make proportionate allowance for the costs of maintaining children in health and comfort. The real remedy lies in a national plan for child endowment which would cost the community so much less in money than it would repay in health, efficiency and happiness.

The Leader of the Senate (Senator McLeay) asked me to deal with the war. [ point out to him that if the Government is not prepared to feed our children as they should be fed it will not be in a position to build up effective man-power. Such a policy of inaction amounts to an act of sabotage even worse than that of which the Government accuses the Com>munists, because it declines to use the enormous powers and resources it possesses in order to ensure the health of our children. In Victoria, alone, the cost of maintaining the unemployed under conditions of semi-starvation amounts to £1,200,000 annually. Most of this money is derived from wages of the workers. That state of affairs should not be tolerated in a country like Australia.

The Governor-General’s Speech contained the following statement: -

My advisers are resolved to do everything possible to maintain essential production so that the needs of the fighting forces may bc mct with as little interference as possible with the substantial requirements of the civil population.

That statement is not correct. Proof that the Government has not done everything possible in this direction is to be found in the number of our unemployed. When so many of our men are idle it cannot be said that we are building up our material resources. Of course, statements of this kind are put into the mouth of the Governor-General; but they are not fair to His Excellency as they cause him to be regarded with suspicion, lt is not His Excellency; but members of the Government, who are responsible for misleading the people in this way.

Another important matter is referred to in paragraph 6 of the GovernorGeneral’s Speech -

My advisers have given full consideration to the problem of financing the huge costs of war. They axe convinced that, while a liberal and modern approach must be made to it, there is no easy path to be followed. They are resolved to avoid the evils of monetary inflation, since it imposes unjust and inequitable financial burdens, particularly upon the wage and salary earner, destroys public confidence, is destructive of savings and would lead inevitably, if pursued, to financial collapse and post-war depression.

– Very little imagination is required when the facts are on record. I know from my’ own experience exactly what was done before. I could show to honorable senators bundles of galley proofs which I use as exhibits, when necessary, illustrating how Labour articles were suppressed, and also how articles criticizing or reflecting on the Government in , any way, were “ bluepencilled “ by the censors. If that is not a prelude to fascism, then I do not know the meaning of fascism.

During the Corio by-election, the Melbourne Herald, of the 15th February, contained the following statement: -

Tho position is that a small and bitter section of the people, who are anti-British, have an unduly great influence in the Federal Labour party, and on this occasion are conducting its policy.

Can it he suggested that men like the Leader of the Australian Labour party (Mr. Curtin), or the Leader of the Opposition in this chamber (Senator Collings), are dominated by anti-British influences? There was no suggestion that, because it stated deliberate and malicious untruths, the Melbourne Herald should be censored. There was not a single protest from any section of the community that is opposed to the Labour party. On the contrary, leading representatives of antiLabour parties repeated this statement, and even the Prime Minister himself solemnly assured the electors of Corio that Hitler was waiting to see which way they voted. In fact, he said every vote for Labour would be a vote for Hitler. If the right honorable gentleman were an ignorant person I could make allowance for a statement of that kind; but, during the last war, he expressed opinions to the contrary, and showed that powers had been abused in exactly the same way as he has abused his own powers. If the Government is successful in suppressing Communists, the next step will be to suppress honorable senators on the Opposition side and the newspapers which the Labour party controls, so that the only voice permitted to be heard will be that of the Government. In the leading evening paper of Australia, which is controlled by one of the most powerful- financial groups in this country, a statement was made which the owners of the newspaper knew to be untrue, but it was never subsequently modified or withdrawn. When persons in responsible positions hold my colleagues up to contempt, and appeal to the strongest of all prejudices, that of race, we have an indication of what would follow if appropriate action were not taken by this Parliament. This newspaper did not appeal to reason, or to our conception of right and wrong, but to vicious racial prejudice, in order to discredit a respectable returned soldier Labour candidate and the party which he represented. It made a similar statement on the 2nd February as follows: -

The anti-British complex, which is the dominant factor in the Federal Labour party to-day, is not concealed.

So I return to the point that I made at the outset, that if an attempt to suppress Communists and their publications were successful, a further effort would be made to suppress Labour journals.

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

– Any other seditious newspaper will be suppressed.

Senator CAMERON:

– The Minister would suppress any newspaper holding views in opposition to his own. Any newspaper would be regarded as seditious if it challenged the policy of the Government, and showed that the Government was responsible for the state of affairs that has arisen in the coal-mining industry. It could be shown beyond doubt that the policy to which the Government is committed is that which has reduced the miners to a state of desperation in which they have no alternative to the action that they have taken.

When Judge Drake-Brockman gave his award he had examined the miners’ claims exhaustively in order to satisfy himself as to the conditions under which they were working. On the 29th June, 1939, he decided that the hours of employment for all workers should be 40 a week, these to be worked in five days, Monday to Friday, of eight hours. These hours were to be inclusive of crib time for underground workers, and exclusive of crib time for workers on the surface. The award also provided that the members of the craft unions should receive an increase of the daily rate by 20 per cent, in order to compensate them for loss of earnings occasioned by the reduction of the number of working days. The Miners Federation was invited to claim the same adjustment in respect of the daily rates, and two weeks’ annual leave also was granted. An appeal was made by the employers to the Full Court on the 21st August, 1939, and, without hearing any evidence, that court decided, in a majority judgment delivered on the 4th October, 1939, that the rates of underground workers and of employees engaged on the surface in handling coal from the pit mouth to the wagons should be 40 a week, five days of eight hours each, inclusive of crib time, but that the hours of other workers, including engineers and engine drivers, should be those operating prior to the dispute. Judge DrakeBrockman dissented from the Full Court’s decision. The hours of a large number of members were restored to 43 and 44 a week, and the increase of the daily rate was withdrawn. Some members of the Miners Federation. who had in the past worked only eight hours a day, inclusive of crib time, actually had their daily hours increased by half an hour, hut the daily rate of pay was not altered.

In a statement issued by the general secretary of the combined mining unions on the 12th February, 1940, in reply to the Prime Minister, he said, inter alia -

After the judgment was delivered, Judge Piper admitted that he did not know what the hours of work in the coal-mining industry were, and he and the Chief Judge had to order a correction of the Full Court decision. When the Chief Judge was asked in the court to give an interpretation of the “ face-to-wagon group “, and also who should enjoy the 40 hours, he said he would have to visit the minefields to find out.

Senator CAMERON:

Senator McBride:

– It does not say that at all.

Senator CAMERON:

– The employer, however, is to have not only the rights that he now enjoys, but also additional power. He will be able to compel the trainee to observe the terms of the agreement as he would have them. That is the first step towards industrial conscription. If that were not pointed out to the workers, a similar state of affairs would soon exist in other industries, and gradually the workers would bo reduced to the position which existed in England during the last war. The employers could demand that their employees should work overtime without pay, or do more work than they were able to perform. They could make all sorts of demands of their employees, who would have no right of redress. Possibly, benefiting by what happened during the last war, the employers are anxious to establish similar conditions during this war. Those are my two objections to the scheme. Where labour is diluted in the ordinary way, even though the rates are lower and the conditions more arduous, the employee has the right to refuse to work if he thinks that he is not receiving proper treatment. Moreover, he has the right of appeal; but in this agreement there is no such provision. Whether or not this is the actual agreement that would be signed, I do not know. It is a copy of the proposed agreement which the Engineering Union is expected to sign. I submit that those two objections are sound, and I hope that they will be upheld. So far as I am able, I shall not hesitate to explain to the workers what is intended. As I have said, the Government is in a position to give better conditions, and it should do so. If there were a scarcity of commodities1, and the Government could prove that it could not pay the proper rates a different stand would be taken; but where we have abundance - we have more fruit and wheat and other commodities than we can use - the Government’s proposal cannot be justified. It is not a matter of money, for money is simply used as a medium of exchange. There should be no scarcity of money while there is no scarcity of commodities. The Government’s claim is unjust and should not be agreed to.

Debate (on motion by Senator Collett) adjourned.

page 287

SPECIAL ADJOURNMENT

Motion (.by Senator McLeay) agreed to-

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

page 287

ADJOURNMENT

Flax Prices - Defence Contracts - War Loans - Inglewood Post Office

Motion (by Senator McLeay) proposed -

That the Senate do now adjourn.

Senator FOLL:
Minister for the Interior · Queensland · UAP

.- To-day, Senator Aylett asked the Minister representing the Minister for Supply and Development, upon notice -

Is it a fact that the Government has fixed the price paid for flax to the growers?
If bo, why did they not fix the price of the processed fibre, instead of calling tenders for same?
Is it not a fact that Flax Fibres Pro prietary Limited hold all the seed in Australia and are the only people in a position to tender ?
Has any tender been accepted yet for the supply of flax fibres ; if so, at what price?

The Minister has supplied the following answers: -

Tenders were called for the supply of flax fibre and tow and one condition of the supply is that producers of flax straw shall be paid promptly at rates which have produced increasing quantities of straw in recent years. This rate is £5 -a ton for standard quality.
There is no current or established rate for fibre and tow. Despite many attempts by various interests, the processing of . flax has not been developed sufficiently to ascertain the costs of efficient production is Australia.
No control has . been exercised in seed.

Tenders were invited to discover all potential suppliers.

No. Details will be announced if and when any tender is accepted.

Senator Collings:

asked the Minister representing the Minister for Supply and Development -

What is the present method of calling for applications for defence contracts?
Are tenders called?
Are accounts connected with such con tracts subject to the scrutiny of the AuditorGeneral ?

The Minister has supplied the following answers: - 1 and 2. Normal practice is for tenders to be invitedby public advertisement, and with the exception of certain requirements such as supplies and services for camps of training, &c, tenders for which must necessarily be confined to the State or locality concerned, tenders for all large bulk requirements are invited throughout the Commonwealth. However, it has been found necessary to requisition production capacity or to distribute orders in other ways’ to secure the large quantities of cloth, and clothing, boots, hats, &c, urgently needed for the Defence Forces. Allocations and prices are determined after conferences with manufacturers having regard to civil needs, to previous tender and contract rates, and in some cases after investigation by the Prices Commissioner.

Yes.

Senator DARCEY:
Tasmania

– I am sorry that I have not been able to get any answers to the questions I have asked this session regarding the raising of money for war purposes. For that reason 1 placed a question on the notice: paper this morning. There are three ways of raising money for the war: First, by taxation, which really amounts to a confiscation of the people’s money; secondly, by public subscriptions to war loans by way of bonds; and, thirdly, by borrowing in the usual way through the banks. Any money obtained from the people by the purchase of war bonds for cash is worth at least ten times as much as is subscribed by the banks, yet it seems that the Government’s programme provides almost wholly for the raising of money through the hanks. If the public -subscribes £2,000,000 in cash it will be quite competent for the Commonwealth Bank to advance to the Treasurer £20,000,000 on the cash so provided. I therefore suggest to the Government that ‘ it should look more and more to this means of raising the money that it needs. The, purchase of bonds by the people is undoubtedly the best means available to supply funds. It was to direct attention to that fact that I put my question on the notice-paper. I took the action also because the members of the Government appeared to be at sea whenever I ask a question about finance.

Senator CLOTHIER:
Western Australia

– I take this opportunity to make an appeal to the Government to proceed with the erection of the new post office at Inglewood, Perth, in view of the development which is occurring there. A block of land has already been purchased for this purpose, but it is not practicable to send telegrams or purchase stamps on a block of land. A building and some staff are required. Hitherto when I have been asked by the people of Inglewood what is being done to provide them with their promised post office, I have been obliged to reply that the Government needs what money it has available for war purposes; but. as £1,600 has been provided on the Estimates for this post office I urge that the work be put in hand. I have already had reason to complain about the deficiency of the Government’s works programme in Western Australia. I therefore feel fully justified in urging that this particular job be put in hand at once. Non-official post offices do not provide for the requirements of a growing district. We know very well that postage stamps in excess of 10s. cannot be purchased at non-official post offices, nor can certain other business be transacted at such agencies. At present pensioners in that district have to go from a mile to two and a half miles in order to collect their pensions. That also is most unreasonable for aged people. I therefore urge the Government, in the interests of the pensioners, and also of the community in general, to proceed at once with the erection of the new building.

Senator McLEAY:
South AustraliaMinister for Trade and Customs · UAP

– in reply. - The representations of Senator Clothier will be brought under the . notice of the PostmasterGeneral. Consideration has already been given to the suggestions advanced by Senator Darcey.

Question resolved in the affirmative.

page 288

PAPERS

The following papers were presented: -

National Security Act -

National Security (Aliens Control) Regulations - Orders - Enemy aliens to report ( 10 ) .

National Security (General) Regulations

By-laws - Controlled areas (5).

Orders -

Control of highways.

Prohibiting work on land.

Taking possession of land, &c. (49).

Use of land (6).

Apple and Fear Export Charges Act - Regu lations amended - Statutory Rules 1940, No. 67.

Dried Fruits Export Charges Act - Regulations amended - Statutory Rules 1940, No. 41.

Gold Tax Collection Act - Regulations - Statutory Rules 1939, No. 179.

Trade Commissioners - Act- Regulations amended - Statutory Rules 1940, No. 42.

Norfolk Island - Report for year 1938-39.

Senate adjourned at 11.34 p.m.

Cite as: Australia, Senate, Debates, 22 April 1940, viewed 22 October 2017, <http://historichansard.net/senate/1940/19400422_senate_15_163/>.

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Senate22 April 1940

QUESTION

EXPORT OF FRUIT

Senator LAMP:TASMANIA

Senator McBRIDE:SOUTH AUSTRALIA · UAP

QUESTION

EXPORT OF SCRAP IRON AND PIG IRON

Senator FRASER:WESTERN AUSTRALIA

Senator McLEAY:Minister for Trade and Customs · SOUTH AUSTRALIA · UAP

QUESTION

WOLFRAM PRODUCTION

Senator HERBERT HAYS:TASMANIA

Senator McBRIDE:SOUTH AUSTRALIA · UAP

QUESTION

LANDS FOR MILITARY PURPOSES

Senator SHEEHAN:VICTORIA

Senator FOLL:

QUESTION

EMPIRE AIR SCHEME

Senator CUNNINGHAM:WESTERN AUSTRALIA

Senator FOLL:UAP

QUESTION

AUSTRALIAN IMPERIAL FORCE

Senator BROWN:QUEENSLAND

Senator FOLL:UAP

Senator FRASER:

Senator FOLL:

Senator FRASER:

Senator FOLL:

Senator E B JOHNSTON:WESTERN AUSTRALIA

Senator FOLL:

QUESTION

AERODROMES

Senator AYLETT:TASMANIA

Senator FOLL:UAP

Senator AMOUR:NEW SOUTH WALES

Senator FOLL:

QUESTION

WOOL PRICES

Senator E B JOHNSTON:

Senator McBRIDE:Minister without portfolio assisting the Minister for Commerce · SOUTH AUSTRALIA · UAP

QUESTION

AMALGAMATED WIRELESS (AUSTRALASIA ) LIMITED

Senator McBRIDE:UAP

QUESTION

GOVERNOR-GENERAL’S SPEECH

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator A J McLACHLAN:SOUTH AUSTRALIA · NAT

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Ashley:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Sheehan:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Sheehan:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Ashley:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Ashley:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Ashley:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator COURTICE:QUEENSLAND

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Collings:

Senator Collings:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Collings:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Sheehan:

Senator Dein:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Sheehan:

Senator A J McLACHLAN:SOUTH AUSTRALIA · NAT

Senator Collings:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Sheehan:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Collings:

Senator JAMES McLACHLAN:SOUTH AUSTRALIA · UAP

Senator Collings:

Senate
22 April 1940

Senator LAMP:
TASMANIA

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

Senator FRASER:
WESTERN AUSTRALIA

Senator McLEAY:
Minister for Trade and Customs · SOUTH AUSTRALIA · UAP

Senator HERBERT HAYS:
TASMANIA

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

Senator SHEEHAN:
VICTORIA

Senator CUNNINGHAM:
WESTERN AUSTRALIA

Senator FOLL:
UAP

Senator BROWN:
QUEENSLAND

Senator FOLL:
UAP

Senator E B JOHNSTON:
WESTERN AUSTRALIA

Senator AYLETT:
TASMANIA

Senator FOLL:
UAP

Senator AMOUR:
NEW SOUTH WALES

Senator McBRIDE:
Minister without portfolio assisting the Minister for Commerce · SOUTH AUSTRALIA · UAP

Senator McBRIDE:
UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator COURTICE:
QUEENSLAND

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Senator CUNNINGHAM:
Western Australia

Senator C CUNNINGHAM:
WESTERN AUSTRALIA

Senator McBRIDE:
SOUTH AUSTRALIA · UAP

Senator CUNNINGHAM:
WESTERN AUSTRALIA · ALP

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

Senator ALLAN MacDONALD:
Western Australia

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

Senator MCBRIDE:
UAP

Senator McBRIDE:
SOUTH AUSTRALIA · UAP