29 October 1941

16th Parliament · 1st Session

The President (Senator the Hon. J. Cunningham) took the chair at 3 p.m., and read prayers.

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– Will the Minister representing the Minister for Commerce state what action, if any, the Government has taken regarding the appraisement of wool at Albany this season?

SenatorFRASER. - by leave- The Government has given consideration to the matter of conducting wool appraisements at Albany in connexion with the scheme of war-time acquirement of the Australian wool clip by the United Kingdom Government.

This matter was considered on several occasions prior to the advent to office of the present Ministry, and, in dealing with it, the Government had before it the decision of the previous Government, given on the 1st October, when it was decided that, in the interests of decentralization, appraisements should be carried out at Albany under the following conditions: -

  1. that 14,000 bales should be appraised at Albany this season ;
  2. that brokers be recouped the reasonable cost of putting the stores at Albany in order, to deal with such quantity of wool;
  3. that growers of wool outside the zone determined for the Albany district, who had to pay a heavier freight on wool toFremantle, and also those growers within the zone where the normal freight to Albany was less than to Fremantle, but who, owing to limitation of offerings, could not send their wool to Albany, should be charged freight at the same rate as to Albany;
  4. that, should overseas shipping not be provided at Albany, the Commonwealth Government would accept the responsibility for the paymentof freight on wool from Albany to Fremantle during the period of the appraisement scheme.

The Government has decided to abide by that decision. The Central Wool Committee hasbeen advised of the Government’s decision, and the Western Australian wool-sellingbrokers have also been notified, so that early steps could be taken to receive within the defined zone at Albany the present season’s clip. It is understood that one wool-selling firm, viz., Westralian Farmers Limited, has applied to the Central Wool Committee for a licence in terms of National Security (Wool) Regulation No. 25. and will shortly be authorized to receive wool into its stores at Albany for appraisement.

The Government hopes that other woolselling brokers operating in Western Australia will take immediate steps to obtain a licence in order to receive wool from their clients in the zone arranged. Any delay in receiving wool at Albany for appraisement from clients of these firms can be attributable only to their own tardiness in not taking steps to secure the necessary authority from the Central Wool Committee.

With regard to the renovations to stores and dumping equipment, &c, at Albany, the Government considers that it should be possible for the four woolselling brokers concerned to make some mutual arrangement for dealing with the 14,000 bales through interchange of the accommodation and equipment. By adopting such a procedure expense would be saved, repair work reduced, and an early start made with the handling of this season’s clip.

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Senator McLEAY:

– Will the Leader of the Senate state whether Ratliff and Thomas, who were interned for subversive activities, were released on the advice of the Government’s military advisers? If they were not, will the Leader of the Senate give to honorable senators an opportunity to review the papers disclosing the reasons why those men were interned?

Minister for the Interior · QUEENSLAND · ALP

– I think that the Leader of the Opposition knows the answers to his questions. I do not propose to supply them, even if he does not. If he is at all dissatisfied with the position, and will place on the notice-paper a question that can be properly dealt with, I shall see that he gets a proper reply.

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Senator LECKIE:

– Is the Minister for Aircraft Production the Senator Cameron who took part in a “ Heckle Hour “ debate at the 3DB broadcasting station on Saturday night? If so, will he state whether the views he expressed there, that so-called monopolies should be taken over without compensation, are the views of the Government on that matter?

Senator CAMERON:
Minister for Aircraft Production · VICTORIA · ALP

– I stand by the opinions that I expressed on Saturday night at that gathering, but they are not necessarily the views which the honorable gentleman believes me to hold.

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– Is the Minis ter representing the Minister for Commerce in a position to say what action the Government has taken in regard to the 1941-42 and subsequent apple and pear crops?

Senator FRASER:
Minister for External Territories · WESTERN AUSTRALIA · ALP

– I regret that, owing to circumstances over which the Government has no control, the report of the Committee on Apples and Pears has not yet been made available. As the Government desires that its policy in respect of the fruit-growing industry shall be placed before Parliament at an early date, I shall endeavour to have the report made available next week so that Parliament may he acquainted with its contents.

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Assent to the following lulls re ported : -

Supply Bill (No. 3) 1941-42.

Loan Bill (No. 2) 1941.

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The PRESIDENT (Senator the Hon J Cunningham:

– I have received from Mrs. J. Mullan and family a letter of thanks and appreciation for the resolution of sympathy and condolence passed by the Senate on the occasion of the death of formerSenator the Honorable James Mullan.

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– On the 21st August Senator Armstrong asked the Minister representing the Prime Minister the following question, upon notice : -

Will the Minister supply the names of the gentlemen whose services are being used by the Government but whose remuneration is not entirely paid by the Government?

I now furnish the following reply : -

  1. M. Badger, Executive Assistant to Chief Accountant- Finance Branch - Department of Munitions. (£250 allowance to cover cost of travel between Geelong and Melbourne. )
  2. Bolle, Assistant to Director of Finance. (£6 a week allowance - ex-public servant recalled. )
  3. Booth, Assistant Area Controller Machine Tools and Gauges Section (New South Wales ) .
  4. J. F. Boyer, Controller, American Division, Department of Information, Sydney.

Hugh G. Brain, Business Member of the Naval Board.

Major R. A. Briggs, Liaison Officer between all Services and Ordnance Production Directorate.

Sir Harry Brown, Director of War Organization of Industry and Co-ordinator of Works.

  1. J. Bult, Assistant Controller of Nonferrous Metals, Department of Munitions.
  2. Camphin, Assistant Area Controller of Gun Ammunition Production (New South Wales).
  3. Clark, Metallurgical Adviser, Department of Munitions.

Sir Reginald Marcus Clark, K.B.E., Adviser to the Commonwealth Prices Commissioner.

  1. Clarke, Ordnance Factory.
  2. H. Clements, Division of Aeronautical Research, Council for Scientific and Industrial Research.
  3. L. Dingle, Technical Investigator, Machine Tools and Gauges Section (New South Wales).
  4. G. Donaldson, Business Administrator, Ammunition Factory, Rocklea (Queensland).
  5. Donaldson, Director of Explosives Supply.
  6. F. Evans, Assistant Controller of Nonferrous Metals, Department of Munitions.

Sir Ernest Fisk, Economic Coordinator.

  1. D. J. Forster, Business Manager, Department of the Army.

Sir Colin Fraser, Director of Materials Supply.

  1. Fraser, Engineer. Ordnance Production

Section (New South Wales). (Retired. Remuneration of ?300 per annum from 1st July, 1941.)

  1. H. Glen, Assistant Controller of Tool Steel, Department of Munitions.

Colonel Goodyear, Ordnance Factory.

  1. M. Gosper, Liaison Officer, Timber Control. Board of Area Management (New South Wales).
  2. C. Harris, Accountant, Timber Control Board, Department of Munitions.
  3. J. Hartnett, Director of Ordnance Production.
  4. Hedberg. Co-ordinator of Projects in regard to all Optical and Electrical Work, Department of Munitions.
  5. E. Helsham, Engineer, Ordnance Production Section (New South Wales). (Retired. Remuneration ?155 per annum from 1st July, 1941.)
  6. McK. Hislop, Adviser to Commonwealth Prices Commissioner. Honorarium of ?500 per annum.
  7. E. Hooper, Leather Controller (Contracts), Department of Supply and Development.
  8. B. Hutcheson, Controller of Advertising, Department of Information.
  9. L. Jenkins, Secretary to Director-General of Munitions.
  10. Sydney Jones. Business Member, Air Board.
  11. E. Keegan, General Business Manager, Ammunition Factory, Footscray.
  12. J. Lasry, Adviser to the Commonwealth Prices Commissioner. Honorarium of ?500 per annum.
  13. B. Levick, Assistant Secretary (New South Wales).

Essington Lewis, Director-General of Munitions.

  1. E. Lockhart, Clothing Adviser on staff of Business Member Air Board (employed part time).
  2. McCormack, Engineering Assistant, Department of Munitions.
  3. K. MacDougall, Electrical Adviser, Department of Munitions.
  4. M. McShane, Technical Secretary to Director-General.
  5. R. Mackie, Assistant Controller of Ferrous Metals, Department of Munitions.
  6. Maguire, Consultant (Contracts), Department of Supply and Development, exPublic Servant(recalled). Allowance of ?300 per annum.
  7. Maling, Area Controller of Gun Ammunition Production (New South Wales).
  8. L. Marcroft, Assistant to Controller of Electrical Equipment.
  9. J. A. Massie, Director-General of Supply.
  10. T. Merrett, Technical Assistant to Director-General.
  11. R. Mitchell, Member (part time) Aircraft Production Commission. Remuneration ?500 per annum.
  12. Moore, Junior Clerical Assistant, Department of Munitions.

R, Morgan, Engineering Assistant, Department of Munitions.

  1. C. J. Nicholson, Controller of Electrical Equipment.
  2. A. Paddison, Director of Commercial Intelligence, Department of Commerce.
  3. F. Pollmitz, Board of Area Management, South Australia (State Officer).
  4. M. Ramsay, Liaison Officer, Department of Munitions.
  5. E. Scantlebury, Cost Investigator, Board of Area Management, South Australia ( State Officer - Allowance ?50 per annum ) .
  6. Scott, Financial Adviser to Board of Area Management (New South Wales).
  7. J. Smith, Director of Gun Ammunition.
  8. H. Stack, Assistant to Controller, Small Arms Ammunition Production.
  9. M. Steer, Area Controller, Machine Tools and Gauges Section (New South Wales).
  10. J. Stewart, Engineer, Ordnance Production Section.

Kenneth Syme, Inspector on staff of Business Member, Air Board (employed part time).

  1. G. R.Symonds, Cost Investigator, Board of Area Management, South Australia (State Officer - Allowance ?50 per annum).
  2. Thorn, Assistant Controller of Electrical Cables, Department of Munitions.

Colonel F. G. Thorpe, Director of Machine Tools.

  1. G. Williams, Assistant to Assistant Superintendent, Munitions Supply Laboratories.
  2. A. Witten, Assistant to Director of Machine Tools.
  3. Wright, Assistant Manager (Administrative). AmmunitionFactory, Footscray.

Except where shown above, and also for the provision of travelling expenses in certain cases, the services of the above personnel are being made available without cost to the Commonwealth Government.

The above information does not cover wartime boards and committees. Information in relation to some of these authorities was published in Hansard No. 8. 25th June, page 424.

Revised information in regard to all war-time boards and committees is at present being prepared by the Prime Minister’s Department.

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Senator AYLETT:

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

  1. Will the Minister supply to the Senate a copy of the indictment and a summary of the evidence received from the Commonwealth representative in America, against directors of the great international aluminium combine known as Alcoa?
  2. If not, will he give senators an opportunity to peruse the file?

SenatorFRASER. - This matter con- cerns the Minister for Munitions, who has made the following information available : - 1 and 2. A copy of each of the documents referred to has been placed in the Library for the honorable senators’ perusal. Advice was received to-day from the Australian Trade Commissioner, New York, to the effect that judgment on this case has now been delivered by the Federal Court and the company has been absolved on all charges brought against it.

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Service Pensions

Senator BRAND:

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

Can itbe taken for granted that the Government will honour the decision of the Fadden Government to grant a service pension to eligible South African war veterans?

Senator CAMERON:

– The Minister for Repatriation has supplied the following answer: -

Yes. Legislation to provide service pensions for eligible South African veterans will be introduced during the present session.

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Co-operationwithmilitary Forces.

Senator BRAND:

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

  1. Is it the intention of the Government to implement Major-General SirIven Mackay’s recommendation for closer Royal Australian Air Force co-operation so that, if and when the Australian Military Forces become engaged in active operations, there will not be a repetition of the disadvantageunder which AustralianImperial Force divisions went into action in the Middle East?
  2. Is it a fact that the enemy’s successes have been due to the Nazi air squadrons being placed entirely at the disposal of German Divisional Commanders to whom the enemy airmen report direct for orders and instructions ?
Senator KEANE:
Minister for Trade and Customs · VICTORIA · ALP

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

  1. This matter had the close attention of the Government prior to Major-General Sir Iven Mackay’s return to Australia. It is at present the subject of discussion between the Chief of the General Staff, the Chief of Air Staff, and the Commander-in-Chief of the Home Forces, to determine the extent to which it can be given effect in Australia, should the necessity arise.
  2. No. It is considered that the enemy’s successes have so far been due to the overwhelming air superiority he has enjoyed.

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Senator UPPILL:

asked the Minister representing the Minister for Labour and National Service, upon notice -

In view of the severe shortage of farm labour for the forthcoming harvest, will the Minister indicate to the Senate what action has been taken, or is contemplated, to meet this serious position?

Senator ASHLEY:
Minister for Information · NEW SOUTH WALES · ALP

– The Minister for Labour and National Service has supplied the following answer : -

This matter has been receiving the attention of the Man-power Priorities Board, and certain action, announced by the Minister for Labour and National Service several weeks ago, has already been taken to meet the position. Many representations have been made to the military authorities as regards universal trainees, and in a number of cases these authorities have been able to accede to the requests.

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Reject Badge

Senator BROWN:

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

  1. Is it true that men who serve in the Australian Imperial Force and are rejected before serving abroadbecause of ill health, not due to their own fault, are issued with a reject badge?
  2. Is this badge the same as the one issued to those who are rejected without serving?
  3. If the answer to No. 2 is in the affirmative, are any steps being taken to provide a different badge to those who have served a period in the Australian Imperial Force?
Senator KEANE:

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

  1. Men who enlist in the Australian Imperial Force and are discharged prior to embarkation medically unfit (not due to misconduct) are not issued with a reject badge hut with the general service badge. If, however, the disability existed at the time of enlistment, themember is issued with the medically unfit badge, which is the badge issued to those who are rejected without serving.
  2. See 1 above.
  3. See 1 above.

Sitting suspended from 8.19 to 8.58 p.m.

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Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

.- I lay on the table by command -

Estimates of Receipts and Expenditure (Revised) and Estimates of Expenditure for Additions, New Works, Buildings, &c. (Revised), for the year ending the 30th June, 1942.

Budget l941-42 (Revised) - Papers presented by the Honorable J. B. Chifley, M.P., in connexion with the revision of the Budget of 1941-42 and move -

That the papers be printed.

When the Treasurer (Mr. Chifley) delivered his financial statement in the House of Representatives to-day he indicated that the Government would carry out its duty to the country with determination and with all the capacity at its command. In view of the limited time available for an examination of the previous Government’s estimates of expenditure, these have been adopted, with some alterations. The main alterations are the provision for increased pay and allowances of members of the forces, the raising of the maximum rate of invalid and oldage pensions, and increases and extensions of service pensions. The Government will also proceed vigorously with the provision of houses for war workers.

First, as regards our fighting forces, we consider that the proposals of the previous Government for increases in pay and allowances at a cost - mainly in deferred pay - of £6,000,000 per annum, did not satisfactorily fulfil our obligations. The Government has provided increases in active pay and allowances at the rate of £7,300,000 for a full year, and additional deferred pay costing £200,000 per annum. All members of the forces on special force rates of pay will receive an additional1s. a day in active pay. The previous Government’s proposed increase of 6d. a day for wives without children has been adopted, and extended to wives with one or more children. The dependants’ allowance for the second child will be increased by 6d. a day. In addition, the standard allotment of a member will be increased from 3s. to 3s. 6d. a day. These increases will commence from the next allotment period. Members of the Royal Australian Air Force and Australian Military Force on special force rates serving at operational stations, such as Darwin, will be credited with deferred pay of1s. a day, while so employed. Members of the Royal Australian Air Force, who have been stationed in Australia longer than six months and who later embark for overseas, will be credited retrospectively with deferred pay for their service in Australia in excess of six months at a rate to increase active and deferred pay to that payable for overseas service. These increases involve payments this year of £4,900,000. After deducting £300,000 allowed in the previous Government’s budget, the increased provision is £4,600,000.

Invalid and old-age pensions will be increased to 23s. 6d. a week, which includes the 6d. increase which would become payable in January next as a cost of living adjustment. The principle of cost of living adjustments will be retained. For a full year the combined increase will cost £1,771,000, and for the balance of this year, £1,022,000.

Other concessions are provided for invalid and old-age pensioners, including the following: -

  1. Full invalid pension will be paid where the degree of permanent incapacity is at least 85 per cent. This concession will cost £150,000 per annum and £87,000 for the balance of 1941-42.
  2. For invalid pensions the Government will adopt the figure of £2 10s. as “ adequate maintenance “ for an adult in lieu of £1 10s. This proposal, which was provided in the previous Government’s budget, will cost £60,000 for a full year and £35,000 for the remainder of this year.
  3. The Government proposes that certain naturalized British subjects, mainly Syrians and

Lebanese, will in future be entitled to invalid and old-age pensions. The cost will be about £20,000 per annum, or £12,000 this year.

  1. Other minor matters brought under notice by the Parliamentary Committee on Social Security will also be included in the amending legislation.

In regard to service pensions, the pay-, ment to a single man will be increased to 23s. 6d. a week - an additional 2s. 6d. For a married man, an increase of 5s. will be provided to cover also his wife, whose pension will remain at 18s. Service pensions are also to be extended to ex-soldiers of the Boer “War. These increases and concessions will cost approximately £108,000 per annum, and £59,000 during the remainder of this financial year.

The decisions of the Government involving increased expenditure, after allowing for reductions of £S0,000 in the estimates for the Department of Information and £35,000 for advertising of primary products under the Department of Commerce, result in a net increase of £5,659,000. These alterations increase the estimated total war expenditure from £217,000,000 to £221,485,000, of which £162,485,000 will be expended in Australia and £59,000,000 overseas. In the interests of economy, the Estimates and budget papers are not being reprinted, but Estimates embodying the amendments have been laid on the table and additional budget papers showing the necessary alterations will be circulated.

The financial position may now be summarized thus -

Towards this £160,000,000, on the basis of last year’s borrowings, we can expect £66,000,000 from loans for war purposes, leaving £94,000,000 to be raised by increased taxes or increased borrowings over last year’s level. Labour’s war policy is to expand the war effort to the maximum ; to use all physically fit unemployed, and to divert labour and resources from civil to war purposes for the balance, whilst maintaining the essential living standards of the basic wage family. Prices must be rigidly controlled and private spending limited to the smaller flow of civil goods available. Expansion of credit can be successfully used to finance employment of reserves of manpower in the production of goods and materials. Any increase of the money volume must, however, be accompanied by a corresponding increase of production, and a thorough survey of the reserve man-power field is now in progress.

The task of the Government is therefore to provide for additional taxes on those best able to bear them; a national savings campaign; an appeal for maximum support for war loans and war savings certificates; and such further control and measures needed to divert our resources from civil to war purposes. Additional taxation is proposed which will produce about £29,000,000 in a full year and about £22,000,000 for the balance of this year. A very considerable increase is provided for income tax on higher incomes, which will bring the total rate almost to 18s. in the £1 in the highest taxed State. For individuals, the present rates for income from personal exertion increase progressively up to £1,500. The rate is 10s. in the £1 on income in excess of £1,500. No alteration is proposed in the scale up to £1,500, but thereafter the present rate of progression will be continued up to £2,500, and income in excess of that amount will pay 200d. in the £1. Corresponding changes are proposed for incomes from property, the excess over £2,000 paying 200d. in the £1. In this connexion, tables are being furnished to honorable senators. The increases mentioned are expected to produce £6,000,000 for a full assessment year and £4,500,000 for the balance of 1941-42. In addition, a number of changes are proposed in the method of assessing taxable income. “Where the wife of a taxpayer has a separate income subject to tax, i.e., over £200, this will be added to the husband’s taxable income to determine the rates payable by both. Some additional revenue is expected from this change and possible loss of revenue will be avoided where incomes are divided between husband and wife to evade taxation. Dividends received by Australian residents from companies whose profits are derived wholly or partly from outside Australia shall in future be taxable in the hands of the recipients. A small committee may be set up to devise a formula to mitigate any hardships arising from double taxation. The allowance of £50 for dependent children after the first child will be discontinued owing to the introduction of child endowment. This will not involve the disallowance of the present deduction for a child who attained the age of sixteen years during the. year 1940-41. It is proposed to deal equitably with cases where the endowin ent is payable for portion only of the present financial year. At present, where dividends are paid by companies out of Commonwealth loan interest which is taxable at 1930 concessional rates those dividends are taxable in the hands of recipients at the same concessional rates. This concession is proposed to be removed from the recipients of such dividends. The concession will still apply to actual holders - companies and others. Where trusts or settlements are created for the benefit of children who are minors and are unmarried, evasion of tax is to be frustrated by making the trustee liable for the additional tax payable had r.he settlor retained such property. The present deduction for calls paid on shares in mining and afforestation companies is to be discontinued. The profits of a private company are now taxable in full at individual rates either in the hands of the company or its shareholders. This principle will be applied to businesses conducted by partnerships or individuals. At present, when not less than 15 per cent, of the taxable income is required to be retained in the business, a rebate of the excess of the individual’s rate over the company rate is allowed. It is proposed to abolish this concession. These proposed amendments to the Income Tax Assessment Act are expected to produce £2,900,000 for the remainder of this financial year and £3,400,000 for a full year. In the case of companies, an increase from 2s. to 3s. is proposed, to yield about £4,500,000, most of which will be collected in 1941-42. The present scale for War-time Company Tax commences at 4 per cent., progressing by 4 per cent, steps for every 1 per cent, in excess of the statutory percentage of 8 per cent, on capital employed, with a maximum of 60 per cent, on total profits in excess of 22 per cent, on capital employed. The Government’s proposals provide for a statutory percentage of 4 per cent, instead of 8 per Gent., and for the commencing rate to be 6 per cent., increasing by steps of 6 per cent, until a maximum of 78 .per cent, is reached on taxable profits in excess of 16 per cent, on capital employed. These amendments will increase the present yield of £1,000,000 by £4,750,000 per annum, and produce an additional £4,000,000 during this financial year. Estate duty on estates of over £20,000 is to be increased on a sliding scale to a maximum of 27 per cent, at £500,000, instead of 20 per cent., as at present. In a full year £650,000 is expected from this increase, but little additional revenue is expected this financial year. Gift duty will be imposed upon gifts of money or transfers of property for which the consideration is inadequate. In addition to raising revenue, this will also control dispersions of property which are made to avoid other taxation thereon. The rates will be substantially the same as those for estate duty, and will be based on the aggregate value of the donor’s gifts within a period of five years. Exemptions are proposed to be allowed for retiring allowances and pensions to employees, also gifts for public, charitable, religious, educational, patriotic and defence purposes. This proposal is expected to raise £250,000 during the remainder of 1941-42 and £500,000 for a full year. Land tax is to be increased by 20 per cent, by a super tax, which will apply only where the taxable balance exceeds an unimproved value of £20,000. About £500,000 additional revenue will be collected in a full year and practically the same amount this financial year. Extra revenue is to be obtained from sales tax, but goods at present exempted will not be affected. The special fields at present taxed at 5 per cent, and 15 per cent, will generally be taxed at 10 per cent, and 20 per cent, respectively. The general rate of 10 per cent, will be retained, subject to certain transfers to the 20 per cent, field. Additional revenue of £1,900,000 is expected from these changes during the remainder of 1941-42 and £3,300,000 in a full year.

Postal and telephone charges are to be increased as follows to produce an additional £1,500,000 during the remainder of this financial year and £2,000,000 for a full year: -

  1. War postage tax of id. in addition to normal rates on all postal articles except mail matter to and from members of the fighting services, air-mail letters to addresses abroad, and parcels.
  2. Increased telephone rentals varying from 5s. to 15s. per annum, an additional Jd. for local calls, and increases on a sliding scale on trunk calls exceeding 25 miles.

Certain increases of customs and excise duties are proposed, which are expected to yield additional revenue of £2,350,000 during the remainder of 1941-42, and £3,500,000 in a full year. Details will be made available at a later stage.

All these increases of taxes and charges are expected to provide this financial year an additional £22,400,000, of which £5,750,000 is indirect taxation and £16,650,000- direct taxation. The total estimated revenue for 1941-42 will, therefore, be increased from £163,227,000 to £185,627,000.

The revenue’ budget may, therefore, be summarized as follows : -

The ‘ estimated total war expenditure of £221,485,000 is to be financed as follows: - Prom cash balances at the beginning of the year, £2,229,000; from revenue, £82,147,000; and from loans, £137,109,000.

I now refer briefly to other aspects of the Government’s financial policy. For our rural industries, the existing machinery for debt adjustment and for. the transfer of farmers from marginal areas will be speeded up. A meeting of Commonwealth and State Ministers will examine these matters early next month.

A bill will also be submitted early in the new year to establish a mortgage bank.

With regard to banking policy, the Government will introduce regulations to license trading banks with a view to preventing expansion of credit by those banks arising out of increased funds due to war conditions. The licences will include provisions that a licensed bank shall-

  1. hold on deposit with the Commonwealth Bank its excess investable funds on a basis to be determined by the Treasurer after fully discussing the matter with the Commonwealth Bank;
  2. publish accounts and balancesheets at intervals and in forms prescribed by the Treasurer;
  3. furnish to the Treasurer, through the Commonwealth Bank, such statements in respect of their business as the Treasurer directs, and to the Commonwealth Bank such statements as thebank directs ; and
  4. enable the Auditor-General to investigate and report upon the affairs of the bank periodically, or as directed by the Treasurer.

In order to assist war production, the Commonwealth has guaranteed certain overdrafts of several private manufacturers with trading banks. In future, this financial assistance will be provided by the Commonwealth Bank.

TheGovernmenthas recently been reviewing the administration of price control, and is determined to limit the scope for profiteering and to tax excess profits wherever they occur.

In conclusion, the Government asks for the co-operation and constructive advice of the whole community, and particularly appeals to industrial organizations to keep the wheels of industry moving. The Government has dealt with the financial problem as it now exists, but the war situation is changing rapidly. A review of the budget position willbe made early in the new year, and a supplementary budget brought down to provide for any additional finance which may be necessary.

Debate (on motion by Senator McLeay) adjourned.

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Motion (by SenatorCollings) agreed to-

That the Senate, at its rising, adjourn till Wednesday, the 12th November next, at 3 p.m.

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Flax Mills

Motion (by SenatorCollings) pro posed -

That the Senate do now adjourn.

Senator FRASER:
Minister for External Territories · Western Australia · ALP

– Earlier in the afternoon Senator J. B. Hayes asked the Minister representing the Minister for Supply and Development, upon notice -

  1. Is it intended to build several new mills to deal with the forthcoming flax crop?
  2. If so, will one be built at Scottsdale, north-eastern Tasmania?

The Minister for Supply and Development has supplied the following answer : -

  1. It is intended to build new mills in Tasmania at Wynyard, Ulverstone and Deloraine, and deseeding depots at Branxholm, Campania, Evandale and Sheffield.
  2. It is not proposed to build a new mill at Scottsdale. At the present time the mill machinery at Scottsdale is housed in leased premises, and the bulk of the 1940 crop for the Scottsdale area has already been processed at this mill.

Question resolved in the affirmative.

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The following papers were pre sented : -

Canned Fruits Export Control Act - Fifteenth Annual Report of the Australian Canned Fruits Board, for the year 1940-41, together with statement by the Minister for Commerce regarding the operation of the Act.

Commonwealth Bank Act - Treasurer’s Statement of Combined Accounts of the Commonwealth Bank of Australia and the Commonwealth Savings Bank at the 30th June, 1941, certified to by the AuditorGeneral.

Customs Act- Proclamation, dated the 3rd October, 1941, prohibiting the exportation (except under certain conditions) of Timber, viz.: - Logs, poles or piles; Timber, dressed or undressed; Railway sleepers; Veneers, rotary cut, but not including furniture veneers; Plywood made from rotary cut veneers.

Dairy Produce Export Control Act - Sixteenth Annual Report of the Australian Dairy Produce Board, for the year 1940-41, together with statement by the Minister for Commerce regarding the operation of the Act.

Judiciary Act - Rule of Court - Dated the 9th October, 1941.

Lands Acquisition Act - Land acquired at -

Boisdale, Victoria, - For Postal purposes.

Boyup Brook, Western Australia - For Defence purposes.

Busselton, Western Australia - For Defence purposes.

Glenorchy, Tasmania - For Defence purposes.

Glen Davis, New South Wales - For Postal purposes.

Muswellbrook, New South Wales - For Defence purposes.

Nowra, New South Wales - For Defence purposes.

Pearce, Western Australia - For Defence purposes.

Point Cook, Victoria - For Defence purposes.

Port Pirie, South Australia - For Defence purposes.

Rooty Rill (Wallgrove) , New South Wales - For Defence purposes.

Sunshine, Victoria - For Defence purposes.

Toowoomba, Queensland - For Defence purposes.

Williamtown, New South Wales - For Defence purposes.

Meat Export Control Act - Sixth Annual Report of the Australian Meat Board, for the year 1940-41, together with statement by the Minister for Commerce regarding the operation of the Act.

National Security Act -

National Security (General) Regulations - Orders - Inventions and designs (87).

Regulations - Statutory Rules 1941 No. 239.

Naval Defence Act - Regulations- Statutory Rules 1941, Nos. 238, 242.

Papua Act - Ordinances of 1941 -

No. 1- Supply 1941-1942.

No. 2 - Customs Tariff.

No. 3 - Prisons.

No. 4 - Dentists Registration.

No. 5 - Supplementary Appropriation 1940- 1941.

No.6 - Succession Duties.

No. 7- Appropriation 1941-1942.

Post and Telegraph Act - Regulations - Statutory Rules 1941, No. 236.

River Murray Waters Act - River Murray Commission - Report for year 1940-41.

Wine Overseas Marketing Act - ThirteenthAnnual Report of the Australian Wine Board, for the year 1940-41, together with statement by the Minister for Commerce regarding the operation of the Act.

Ministerial suggestion made thatin order to conserve stocks of paper the paper be not printed.

Senate adjourned at 4.18 p.m.

Cite as: Australia, Senate, Debates, 29 October 1941, viewed 22 October 2017, <>.