Senate
12 August 1969

26th Parliament · 2nd Session

  1. Senate
  2. 26th Parliament
  3. 1969

The PRESIDENT (Senator the Hon. Sir. Alister McMullin) took the chair at 3.30 p.m., and read prayers.

page 3

REPRESENTATION OF SOUTH AUSTRALIA

The PRESIDENT:

– On 27th May last I announced the appointment of Martin Bruce Cameron by the Governor of South Australia as a senator to hold the place in the Senate rendered vacant by the death of Senator Laught until the expiration of 14 days after the beginning of the next session of the Parliament of South Australia. I have now received from the Deputy of the Governor of South Australia a certificate of the choice of Martin Bruce Cameron at a joint sitting of the South Australian Houses of Parliament to fill the vacancy in the representation of South Australia in the Senate. The certificate will be read by the Clerk.

Certificate read by the Clerk.

page 3

AUSTRALIA PARTY

Senator TURNBULL:
TASMANIA · IND; AP from Aug. 1969; IND from Jan. 1970

– by leave - I desire to inform the Senate that a new political party, named the Australia Party, has been formed and that in future I shall represent that Party. Owing to the factor of numbers, I shall be its leader.

page 3

QUESTION

NATIONAL SERVICE

Senator MURPHY:
NEW SOUTH WALES

– 1 address a question to the Leader of the Government in the Senate. I ask: Now that you have lost the war in Vietnam, will the Government tell the people that all Australian troops will be withdrawn as soon as possible and will you extend the same clemency, which in the past has been shown even to murderers and criminals, and release those young men who are in prison because of their conscientious opposition to the war, which is shared by half the people of Australia? If you are so unrelenting that you will not release all those young men, will you at least let out John Zarb on the compassionate ground that his mother is gravely ill?

Senator ANDERSON:
Minister for Supply · NEW SOUTH WALES · LP

– I do not know how good a tactician Senator Murphy is,

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QUESTION

METRIC SYSTEM OF WEIGHTS AND MEASURES

Senator LAUCKE:
SOUTH AUSTRALIA

– In directing my question to the Leader of the Government in the Senate I refer to the report of the Senate Select Committee on the Metric System of Weights and Measures which was tabled over a year ago.

Senator Hendrickson:

– A point of order, Mr President. Senator Gair has interjected and said that I should be in Pentridge. All I want to say to him is that I proved myself in the First World War and that he has never shown anything but the white feather all his life.I ask for a withdrawal of his remark.

The PRESIDENT:

– Order! There is no substance in the point of order.

Senator Hendrickson:

– I ask for a withdrawal.I should not be given offence.

The PRESIDENT:

– I did not hear anything.

Senator Hendrickson:

– Well, I did. He should withdraw.

Senator Cavanagh:

– I heard the interjection, Mr President, and I think if should

Senator Branson:

– A point of order, Mr President. Is it not a fact that when a senator raises a point of order he should quote the standing order on which his point of order is based? I am at a loss to understand the point of order raised by Senator Hendrickson.

Senator Hendrickson:

– Our friend Senator Branson has stated thatI should quote a standing order. What standing order did he quote when he queried what I did? AllI ask is that Senator Gair withdraw his remark.

Senator Murphy:

-I do not know whether you heard the remark, Mr President. Senator Hendrickson states that a most offensive remark was made to him by Senator Gair and Senator Gair has not denied that he made the remark.In those circumstances Senator Hendrickson is entitled to a withdrawal. I suggest that you require Senator Gair to withdraw in accordance with Senator Hendrickson’s request.

The PRESIDENT:

– It is extremely difficult for me to call on a senator to withdraw a statement that I did not hear.

Senator Murphy:

– You have been told that Senator Gair made the remark and he is not denying it.

Senator Gair:

– Why should I?

Senator Murphy:

– He said that Senator Hendrickson should be in Pentridge.

Senator Gair:

– I did not use the word Pentridge’.

Senator Murphy:

– You did.

Senator Gair:

– I did not say it.

Senator Cavanagh:

– You said he should be there.

Senator Anderson:

– Mr President, this cannot go on indefinitely. I know that it is not normal to react to interjections but I did just hear an interjection by Senator Gair in which he said that he did not make the statement. That is where I think the matter will have to end.

Senator Gair:

-I did not use the word Pentridge’.

The PRESIDENT:

– I cannot do anything about it because I did not hear the remark. I call Senator Laucke.

Senator LAUCKE:

– I wish to pursue my question to the Leader of the Government in the Senate. I refer to the report of the Senate Select Committee on the Metric System of Weights and Measures, which was tabled over a year ago, recommending the early adoption of the metric system of weights and measures in Australia. Can the Minister inform the Senate whether the Government as yet has made a decision in respect of this recommendation?

Senator ANDERSON:
LP

– The position is that the Senate Select Committee on the Metric System of Weights and Measures, of which the late Senator Laught was Chairman, tabled its report in Parliament in May of last year, as I recall it. The only information I have available for the Senate and for the honourable senator is that the Government still has the Senate Committee’s recommendations under consideration. I am sure everybody will recognise the implications involved in a switch to the metric system and indeed will recognise that the substance of the very magnificent report presented by the Committee involves many aspects of the Australian economy. No Government could take a decision on such a matter without due and weighty consideration.

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QUESTION

NATIONAL SERVICE TRAINING

Senator COHEN:
VICTORIA

– I direct a question to the Leader of the Government in the Senate. It follows the question asked by the Leader of the Opposition and relates to our troops in Vietnam. Are we to take it from the Minister’s reply to Senator Murphy that the Government has no plans to withdraw any Australian troops from Vietnam?

Senator ANDERSON:
LP

– The honourable senator cannot take anything more from my words than what I say - except that in a legal sense, I suppose, he might try to interpret something to make an argument. In fact, my reply to Senator Murphy was quite clear. He made the categorical statement that the Vietnam war had been lost. I told him that I did not know what his criteria of judgment were or what his authority to say such a thing was.

page 5

QUESTION

CENTRAL QUEENSLAND POWER-HOUSE

Senator MAUNSELL:
QUEENSLAND

– My question is directed to the Minister representing the Prime Minister or to the Minister representing the Minister for National Development. Have the officers of the Snowy Mountains Authority completed their investigations into the economics of the proposed central Queensland power-house? If so, when is it expected that the findings will be discussed with the Queensland Government so that an early decision on this very important project can be made?

Senator SCOTT:
Minister for Customs and Excise · WESTERN AUSTRALIA · LP

– The central Queensland power-house proposition has been investigated by officers of the Department of National Development. They have made an extensive survey of the area. The project is a vital one to central Queensland; it is designed to develop power for secondary industry at the port of Gladstone and it will be of great assistance to the general development of this region. I understand that a report has been made to the Premier of Queensland and no doubt the Premier will be in touch with the Commonwealth Government about the report.

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QUESTION

BOUGAINVILLE

Senator TURNBULL:
TASMANIA · IND; AP from Aug. 1969; IND from Jan. 1970

– I ask the Minister representing the Prime Minister whether it would be possible for him to consult the Prime Minister to see whether representatives from this chamber and from the other place - perhaps one representative from each Party in each House-

Senator Branson:

– Listen to this!

Senator TURNBULL:
TASMANIA · IND; AP from Aug. 1969; IND from Jan. 1970

– Well, the honourable senator might prefer independents to members of Parties. Would it be possible for a party of, say, eight to visit Bougainville to study at first hand what is happening there?

Senator Marriott:

– Has the honourable senator been talking through his hat about this?

Senator TURNBULL:
TASMANIA · IND; AP from Aug. 1969; IND from Jan. 1970

– At least I have something in my head with which to talk through my hat. As it is extremely difficult to arrange air travel, as I have tried to do, on this occasion would it be possible to use a VIP aircraft so that we can have a look at the situation for ourselves?

Senator ANDERSON:
LP

– Before coming to the substance of the question, may I say, in relation to a statement made earlier by Senator Turnbull by leave, that I, as Leader of the Government in the Senate, congratulate him on the singularity of his achievement. I will always extend to him the same courtesies as 1 have extended to him in the past. Coming to the question of the proposed visit to Bougainville, let me say that it is my understanding that there has been a visit by members of both parties to Bougainville in the last few weeks. I recall seeing Dr Mackay, a member of another place, on television, and he indicated that he had just come back from that area. It is my understanding that the Minister for External Territories will make a statement on the Bougainville matter in another place later this afternoon and that Senator Wright will be making the same statement in this place. I would not want to make any comment ahead of the making of that statement.

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QUESTION

MEAT EXPORTS

Senator LAWRIE:
QUEENSLAND · CP; NCP from May 1975

– Will the Minister representing the Minister for Primary Industry inform the Senate of the reasons for restricting exports of meat to the United States of America for the balance of this year, and also of the number of exporters, if any, who will not be allowed to send any more meat during this period?

Senator MCKELLAR:
Minister for Repatriation · NEW SOUTH WALES · CP

– The position is as follows: The Chairman of the Australian Meat Board, Mr Shute, issued a Press statement on 6th August, setting out the reasons for the restraints on shipments of beef, veal and mutton to the United States of America as from 9th August. In brief, the reasons are that under the United States Meat Import Law arrivals in the USA in 1969 of beef, veal and mutton from Australia are restricted to 225,000 tons. Between November 1968 and July 1969 - that is, arrivals in the USA in the period from January to August 1969 - approximately 180,000 tons had been shipped, leaving a balance of 45,000 tons to be exported between August and midNovember. This period corresponds approximately to arrivals in the USA in the September to December period. The number of exporters currently prohibited from making shipments to the USA is around twenty; that is, one-eighth of those exporters licensed to ship to that country. Each of the remaining exporters will be entitled to ship to the USA up to the level of the credits he has earned under the Meat Board’s diversification scheme.

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QUESTION

APOLLO XI ASTRONAUTS

Senator ORMONDE:
NEW SOUTH WALES

– I direct a question to the Leader of the Government in the Senate. Has the Government invited the American astronauts to visit Australia during the currency of the coming election campaign? If so, will the Government give the Labor Party equal opportunities to entertain and honour these great men?

Senator ANDERSON:
LP

– It is true that the Prime Minister has extended an invitation, through the President of the United States, to the Apollo XI astronauts to visit Australia. That was done at the time when an announcement was made that proposals were in contemplation by the United States that they should go out of America on world tours. I am sure that everybody will agree that it was very wise and very proper for our Prime Minister to extend an invitation to them to come to Australia. I do not think I need to remind the Senate or the people of Australia that we in this country played and continue to play a very significant role in the Apollo programme. Perhaps question time is not the appropriate occasion for me to expand on that: but we will continue to play a very significant role as an agency of the National Aeronautics and Space Administration. So it is proper that we should have extended the invitation. As to the question whether the astronauts would come during an election campaign, when the time of the election is fixed I will be more competent to answer the question.

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QUESTION

ROAD SAFETY

Senator BRANSON:

– I ask the Leader of the Government: Was he not the Chairman of a Senate select committee which inquired into road safety? If he was, does he agree that Australian manufacturers of motor vehicles should be allowed to sell vehicles that are capable of 130 m.p.h in the case of a vehicle of one manufacturer, and 140 m.p.h. in the case of a vehicle of another manufacturer, when in most Australian States there is a speed limit of, at the most, 65 m.p.h.? Does he agree that these vehicles should bc allowed to be sold, in the case of some States, to people of 17 years of age, and in the case of other States, to people of 1 S years of age? Will he make representations to his appropriate colleagues for an increase in the duty on these vehicles to save young people from shocking 100 m.p.h. accidents of the sort that occurred recently in which seven decent young Australians were killed?

Senator ANDERSON:
LP

– The honourable senator asks a very comprehensive question. Yes, it is true that I had the honour to chair a Senate select committee which dealt with the question of road safety. Its report was put down in this place and was given consideration by the Government. It will be recalled by those who read the report that a fundamental problem from the Federal point of view was that the relevant power vests with the States. Whilst we looked at ali of the aspects of road safety, in the final analysis any recommendations that we made - with one exception I think - became the responsibility of the States for implementation. It is within their judgment as to whether they act in relation to excessive speed or in relation to the manufacture of types of vehicles. With the best will in the world - and I find myself greatly in sympathy with the sentiment expressed in the question - I say that responsibility does not lie with Federal Parliament; it lies with the six sovereign States.

As to some other parts of the question, it has been my understanding that an agreement was arrived at between the States and the Australian Transport Advisory Council that there would not be advertising of the speed capabilities of vehicles. I shall be interested to find out whether there is any validity in my understanding. The honourable senator raised a point in connection with duty. I think he would appreciate that in the modern scheme of things most motor vehicles sold in Australia have a high Australian content. We have what are known as our Plan A and our Small Volume Plan, whereby the Government has consciously encouraged more and more Australian content in the manufacture of motor vehicles. The only rebate of duty that manufacturers would get would be under a certain by-law concession for a percentage of imported parts, provided manufacturers planned to expand the

Australian content over a period of years to about 95%. So there is not much power of persuasion in a duty concession. To round off what I have said I say that I think it is extraordinary that there should be advertising which is calculated to attract young people by the high speeds of motor cars. I would hope that as a result of the honourable senator’s question the States will get the message that he conveys and will use some manns to discourage the advertising of the high speeds of motor vehicles, which is calculated only to make people buy the vehicles and see whether they can do those speeds.

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QUESTION

THE SENATE

Senator HENDRICKSON:

– I direct a question to you, Mr President. Are we to understand from your earlier ruling, Sir. that because you did not hear the remark which I allege Senator Gair made and which was heard by a number of senators on both sides of the chamber, in future a senator must ensure that you hear a comment which might be taken to be offensive or insulting before he can seek a withdrawal of the remark?

The PRESIDENT:

– I am not going to answer the question.

Senator Cavanagh:

– Why?

The PRESIDENT:

– I happen to be occupying the Chair. I do not intend to answer the question.

Senator Cavanagh:

– It is a shocking ruling.

Senator Anderson:

– I think the honourable senator should withdraw that remark.

The PRESIDENT:

– I think that honourable senators are getting into difficult waters. I suggest that they keep out of them.

Senator Hendrickson:

– I am the person in difficult waters. Senator Gair said that I should be in Pentridge. I know you did not say that, Mr President, but Senator Gair said that I should be there.

Senator Gair:

– Yes, you should be there.

Senator Hendrickson:

– 1 accept that. Thank you very much.

Senator Anderson:

– With great respect, I suggest-

The PRESIDENT:

– Order! We are faced with trouble at the present time and it is impossible to hear what people are saying because of the cross-fire in the chamber.

Senator Anderson:

– Mr President, regrettably 1 heard Senator Cavanagh make a remark which, 1 think, was a reflection on your ruling. He may have said it in the heat of the moment. I suggest, Mr President, that if you heard the remark you would feel offended by it.

The PRESIDENT:

– I heard what Senator Cavanagh said. This matter is getting out of hand. I think it was discourteous of Senator Cavanagh to make the remark he did. He did not know why I had arrived at the decision not to take action. If he did know why I made that decision then he was going out of his way to be discourteous to me.

Senator Hendrickson:

– You really agreed with Senator Gair that 1 should be in Pentridge. I am asking you, Sir, to give a ruling on it.

The PRESIDENT:

– Just how silly can things get. The honourable senator is asking me whether 1 agree that he should be in Pentridge Gaol. I do not agree with that, of course; I am glad to see him sitting where he is.

page 8

QUESTION

VIETNAM

Senator GREENWOOD:
VICTORIA

– My question is addressed to the Leader of the Government and it follows from questions asked by Senator Murphy and Senator Cohen. ls it a fact that the United States of America sent its armed forces into South Vietnam at the request of the South Vietnamese Government to assist the peoples of South Vietnam to resist the terrorism and insurrection of a North Vietnam directed Vietcong and active aggression sponsored by the North Vietnamese? Was Australia’s support and commitment of its forces to South Vietnam in pursuit of the same objective as that pursued by the United States? 1 also ask: Has the United States activity, supported by that of Australia and other countries, succeeded in very real measure in restraining the terrorism, insurrection and aggression of North Vietnam directed forces and in protecting and enhancing the democratic selfdetermination of the people of South Vietnam? If these assumptions are correct, is it correct to say, as Senator Murphy said, that Australia has lost the war in South Vietnam? If it is not correct to say that, is it to be taken as an indication of the desire of this so-called newly united Australian Labor Party that Australia should lose the war in South Vietnam?

Senator ANDERSON:
LP

– That is a very long question but I am grateful to the honourable senator for asking it. lt is true that the United States of America did go into Vietnam at the request of the South Vietnamese Government. It is true that Australian forces went into that country to give support on the same conditions and for the same objectives - to ensure that thai Government and those people would have the right to freedom, which was at risk because of Communist infiltration and the activities of the Vietcong. It is equally true, as Senator Greenwood said in his question, that because of the intervention of the United States, Australia and other nations, the people of South Vietnam have had preserved for them a way of life that we enjoy and which they expect to have. Against that background, what Senator Greenwood has said about the questions originally put to me is equally true. Where the situation exists that a country’s viability, independence and right to govern itself have been preserved, to suggest that by aiding in that situation you lose a war is legal talk that any ordinary person would never understand. Australia’s contribution should never be denigrated. It should always be regarded as one of greatness, and that is what history will prove it to be.

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QUESTION

WHEAT

Senator MCCLELLAND:
NEW SOUTH WALES

– My question is directed to the Minister representing the Minister for Trade and Industry. Did the Minister for Trade and Industry go te Washington last month to have discussion: with representatives of the United States of America, Canada, Argentina and the European Common Market on the critical over supply position of wheat? Did the discussions produce any workable solution to the great problems confronting the wheat producing countries of the world? Since the Washington conference took place, have both Japan and Brazil declared thai they will not purchase any more wheat from the

United States until world wheat prices are lowered? Is it the Government’s intention to bring down a ministerial statement on the Washington discussions so that the matter can be fully debated in this Parliament in this session?

Senator ANDERSON:
LP

– I agree with the honourable senator that it would be far better to make a statement in some depth in response to his question than to answer it at question time. It is true that the Minister for Trade and Industry recently visited the United States of America. It is true that he negotiated an agreement which is calculated to preserve Australia’s position. Since I am not the Minister directly concerned, but representing him, I would prefer that an answer be given in depth to the honourable senator by that Minister. I think the first thing for the honourable senator to do is to place his question on the notice paper in order to give the Minister an opportunity to furnish a considered and more detailed reply than I could give now.

page 9

QUESTION

POTATOES

Senator LILLICO:
TASMANIA

– Can the Minister representing the Minister for Trade and Industry indicate what percentage of the total Australian consumption of processed potatoes is imported? ls it correct that large quantities are imported from the United States of America and Canada at a price with which Australian processors cannot compete? Has an application been made to the Minister for Trade and ‘Industry to place this matter before the Tariff Board?

Senator ANDERSON:
LP

– I think that this question should also go on the notice paper. I would hope to get a reply for the honourable senator. At present no request for consideration by the special authority has been made. As honourable senators are aware, that procedure can operate prior to a Tariff Board inquiry. As I understand it, no such request has been made to date. I am sure all honourable senators would agree that it would be far better for me to get a reply in depth from the Minister for Trade and Industry in relation to this matter.

page 9

QUESTION

STANDARD GAUGE RAILWAY

Senator BISHOP:
SOUTH AUSTRALIA

– My question, which 1 direct to the Leader of the Government in the Senate, relates to the unnecessary delays in connecting Adelaide with the standardised rail system. This matter has been commented upon by spokesmen for the South Australian Government and the Opposition who claim that delays, particularly in relation to construction but more recently in relation to the consultant study which was offered by the Government in 1968 have been mainly the fault of the Commonwealth Government. In view of the importance of this railway line to South Australia, will the Leader of the Government in the Senate do whatever he can to facilitate agreement between the two parties in order that this rail link can be built as quickly as possible?

Senator ANDERSON:
LP

– I will naturally use my best offices in the direction indicated by the honourable senator. The Minister representing the Minister for Shipping and Transport may have more up to date information than I have, but as 1 have been asked to intercede T shall see what f can do to help. I accept the question and I shall do what I can.

page 9

QUESTION

INTEREST RATES

Senator WEBSTER:
VICTORIA

– My question is directed to the Minister representing the Treasurer. I refer to the recent decision of the Reserve Bank of Australia to increase interest rates by about 0.25%. 1 ask: Will the Minister give an assurance that the interests of Australia’s export industries, particularly those involved in primary production, have been given adequate consideration in this decision? As this is a matter of national importance, does the Minister consider that it would be wise for the Government to give a direction to the Reserve Bank that the interest rates imposed on this important sector of Australian industry should not be increased?

Senator ANDERSON:
LP

– The honourable senator asks about the recent increase in interest rates. It is true that there has been an increase. The honourable senator then link his question with the effect that this increase may have on primary industries. I think it is quite proper for me to say that any decision that the Treasurer makes in relation to a matter such as this is a Government decision. The Government would look at the matter to make certain that no particular or special damage was done to any section in isolation. It would have regard to the overall position of the economy. The decision would be calculated to ensure that the primary industries in Australia as well as every other industry continue to have the degree of success and prosperity that is being enjoyed today.

page 10

QUESTION

VIETNAM

Senator O’BYRNE:
TASMANIA

– My question is directed to the Leader of the Government in the Senate. Because of the untenable position in which Australia is now placed as a result of the United States Government’s change of policy on Vietnam - having realised the futility of the conflict - where the war is needlessly dragging on because of the stubborn intransigence of military diehards, I ask: What purpose is to be served in risking the lives of more Australian soldiers in pursuit of a policy of war which has been proved to the United States to be negative and militarily unwinnable?

Senator ANDERSON:
LP

– If anyone had any doubts about whether an election was pending I think today’s events would have dispelled them because some of the questions asked are quite obviously loaded with political overtones. It is true that the United States Government has said that there may be certain reductions in the United States forces in Vietnam. The background of the withdrawals is that the South Vietnamese needed time to develop the capability to take over certain of the commitments that outside forces were fulfilling. It was quite clear, and honourable senators opposite surely understood, that the South Vietnamese forces were being trained to defend their own country and that the need for expeditionary forces from outside Vietnam would be lessened. That is what is happening now. I do not intend to be drawn into a debate during question time on the broad issues predicated by the honourable senator.

page 10

QUESTION

DEVALUATION

Senator LAWRIE:
QUEENSLAND · CP; NCP from May 1975

– I wish to ask a question of the Leader of the Government in the Senate. How much is Australia’s trade likely to be affected by the devaluation of the French currency and the associated currency devaluation by some African coun tries? Does the French devaluation decision apply to the currencies of New Caledonia and French Polynesia with which Australia has a considerable export trade?

Senator ANDERSON:
LP

– It is early days to make a judgment and express views as to the implications of the French devaluation which took place a few days ago. If the situation remains that the devaluation is confined to the French Republic, that would be one matter. Indeed, if that were to be the position then I do not believe that the implications to the Australian economy would be significant. I think the real question is what the situation is going to be in future in the other countries of Europe. I am not competent to express a view on that matter, nor have I been briefed by the Treasurer on it. So I come back to what 1 said at the start: It is really early days to be making a judgment. At the present time, the effect of the devaluation is limited to the French Republic and I would presume that it would also affect the French territories. When there is a clearer picture of what is going to take place, if anything, I shall be happy to give an answer in the Senate.

page 10

QUESTION

VIETNAM

Senator DRURY:
SOUTH AUSTRALIA

– I address a question to the Minister representing the Minister for the Army. Is it true that while clearing a mine field a Victorian national serviceman was killed in Vietnam because of lack of training in this type of work? Is it also true that the serviceman had received only a crash course of one week in clearing mines although the normal course of training takes several months and only specially trained men are permitted to do this work? By whose authority was the serviceman detailed to carry out this duty. Was the order given with the full knowledge that the serviceman had received only the one week’s crash course? Will the Minister give an assurance to the Senate that in future only men specially trained in this work will be detailed to do it and that steps will be taken to make sure that sufficient men are trained for this dangerous work? Will the Minister give a full report on this disastrous incident to the Senate?

Senator Branson:

– I rise to order. With respect to the asking of questions, I cite Standing Order 419 which provides that no senator shall discuss nor anticipate discus- sion on any subject which appears on the notice paper. I point to Senator Gairs notice of motion No. 5 on the notice paper relating to defence which refers to universal national service for all males between the ages of 20 and 25 years. I ask for your ruling on the matter.

The PRESIDENT:

– Order! That standing order has never been interpreted to be so restrictive as that.

Senator McKELLAR:
CP

– I do not know to whom Senator Drury refers as the victim of the unfortunate occurrence which did take place. We all know that casualties have occurred in the clearing of mine fields in Vietnam. From the information I have received from the Army, I take it that a lot of mine fields were laid but later it was found necessary to remove them. This represented a considerable task. One of the reasons for removing the mine fields was the fact that they could not be looked after. Naturally, of course, certain personnel were engaged in clearing the mine fields. As I understand the position, normally only persons trained in the clearing of mine fields have been engaged on this work. As the honourable senator did not mention the name of the serviceman concerned, I am not sure how much training the serviceman had had. But the normal practice is to employ only those who have had sufficient training in the work. I should like to point out that according to my information there were at least thirty-four fatal Vietcong casualties as a result of the laying of these mines about which we have been hearing so much.

page 11

QUESTION

WHEAT

Senator McMANUS:
VICTORIA

– I desire to ask the Minister representing the Minister for Primary Industry questions relating to two aspects of a very serious problem. Firstly, is the Government making any plans or moves to co-operate with the States for the provision of temporary wheat storages in view of the grave likelihood that they will be needed? Secondly, are there any plans to use excess wheat for drought relief?

Senator McKELLAR:
CP

– The Minister for Primary Industry made a statement the other day. I forget exactly which day it was, but be said that he thought it was not practicable to expect the Commonwealth Government to provide wheat storages in the manner indicated by the honourable senator. He gave as his reason - and I think it is valid - that if this were done this year then, if the same conditions confronted us next year, no doubt the Commonwealth Government would be asked once again to provide storages. The position at the moment is that the wheat growers themselves have decided that there should be a quota system applied to wheat grown in Australia. The State governments also have agreed with this decision, but the Commonwealth Government has not put a quota on wheat production, although others have done so. In my own State of New South Wales the wheat growers have shown their approval of the quotas laid down by the Minister for Agriculture. To the best of my knowledge the Commonwealth has not so far been prepared to provide storage in the manner indicated by the honourable senator. I was asked also about the use of excess wheat being made available for feed in drought affected areas in the northern and southern parts of New South Wales and in Victoria. I do not know whether the honourable senator is suggesting that we should embark upon a different system of using surplus wheat for drought relief. Wheat is available and it can be used under the same conditions as it is now available.

page 11

QUESTION

REPATRIATION

Senator KEEFFE:
QUEENSLAND

– Can the Minister for Repatriation inform the Parliament how many patients are currently inmates of the Wacol Repatriation Pavilion in Queensland? Can he advise us also of the total number of patients who are deprived of their right to enrol on the Commonwealth and State electoral rolls and the reason why this right is denied to such patients?

Senator McKELLAR:
CP

– I cannot state off-hand the number of patients at Wacol. I have been there and I have seen the conditions under which these men are living. I feel that the patients at that establishment are receiving very good treatment. I do not know whether it is a fact, as the honourable senator suggests, that these mcn are not enrolled. If they are not enrolled it would be for a very good reason. I shall inquire and let the honourable senator know what the position is.

page 12

QUESTION

INDUSTRIAL SAFETY

Senator MULVIHILL:
NEW SOUTH WALES

– I address a question to the Minister representing the Minister for the Interior. Does the equivalent to legislation operating in the southern States and broadly known as lifts and scaffolds Acts apply to various types of cranes used at the Gove bauxite project in the Northern Territory? Do crane operators in the Northern Territory have the same traditional rights as crane operators in the southern States to refuse to operate a crane which they consider unsafe, pending an inspection by State lifts and scaffolds inspectors or, in this case, their Northern Territory equivalent? Is the Minister satisfied that such qualified lifts and scaffolds inspectors are available in the Northern Territory or has Nabalco Pty Ltd sought to downgrade safety provisions in its quest for greater productivity?

Senator SCOTT:
LP

– The honourable senator was good enough to advise me of this question. The answer to the first part of the question is yes, cranes are covered by the Northern Territory Inspection of Machinery Ordinance 1941-62. The answer to the second part of the question is that a crane operator must hold a certificate of competency in accordance with the requirements of Part X of the Inspection of Machinery Ordinance and Part V of the regulations made thereunder. By virtue ot their possession of such certificate it is considered that the operators have similar rights and similar obligations regarding safe operation as have crane operators in southern States. The answer to the third part of the question is that inspectors are available. Assuming that the crane in question was that concerned in a recent labour stoppage at Gove, this crane had been inspected and found safe for operations at loads recommended by the manufacturer. The crane is operated by a contractor to Nabalco - not by Nabalco. I understand that the crane was being used at a work capacity above that recommended by the manufacturer. Instructions have been issued by an inspector for the load operated to be reduced and the men have returned to work.

page 12

QUESTION

VIETNAM

Senator GEORGES:
QUEENSLAND

– I address to the Leader of the Government in the Senate a question without notice. Will he answer plainly and without equivocation? Does the Government intend to withdraw troops from Vietnam?

Senator ANDERSON:
LP

– The withdrawal of troops from Vietnam is clearly a matter of policy and at question time one does not give answers to questions relating to matters of policy.

page 12

QUESTION

BOUGAINVILLE

Senator BRANSON:

– Does the Minister representing the Minister for External Territories know why the Opposition as yet has not asked one question relating to Bougainville? It is well known that the Opposition intends to raise the Bougainville issue tomorrow as a matter of urgency. Does the Minister know why the Opposition has left it to its hatchet man, Senator Turnbull, to ask the only question so far about Bougainville?

Senator WRIGHT:
Minister for Works · TASMANIA · LP

– The minds of members of the Opposition are as inscrutable to me as they are to Senator Branson. I have no doubt that members of the Opposition are waiting to hear the statement that is to be delivered by the Minister for External Territories in another place and by myself later in the day.

page 12

QUESTION

WHEAT

Senator WILKINSON:
WESTERN AUSTRALIA

– My question is directed to the Minister representing the Minister for Primary Industry. Will he seriously consider alleviating the position of farmers in drought stricken areas of Western Australia by varying the conditions covering the operations of the Australian Wheat Board to enable those farmers to obtain wheat for their stock for $1.10 a bushel, the amount that they have received as advance payment?

Senator McKELLAR:
CP

– I shall refer the honourable senators request to the Minister for Primary Industry.

page 12

QUESTION

PROHIBITED PUBLICATIONS

Senator WHEELDON:
WESTERN AUSTRALIA

– Has the Minister for Customs and Excise received a request from Mr Gerald Glaskin, the Western Australian novelist, that he be allowed to read the novel ‘Portnoy’s Complaint* by Phillip Roth without having to go overseas to do so? If the Minister has received such a request what does he intend to do about it?

Senator SCOTT:
LP

– The novel ‘Portnoy’s Complaint’ is a prohibited publication. A copy consigned to Mr Glaskin was seized in Perth in July. Mr Glaskin wrote a letter of protest to the Collector of Customs for Western Australia and requested that, as an author, the publication be made available to him. The Collector advised Mr Glaskin of the special release provisions of regulation 4a of the Customs (Prohibited Imports) Regulations which allow the Minister to approve the conditional release of prohibited publications for bona fide purposes. Mr Glaskin now has made application to have the book for one month and, as required by legislation, 1 am awaiting a report from the Chairman of the National Literature Board of Review. I should like to advise the honourable senator also that in 1965 Mr Glaskin publicly protested at the seizure of two prohibited publications consigned to him. On that occasion he stated that he would be forced to leave Australia if the books were not returned to him. The books were not returned to him and he is still in Australia.

page 13

QUESTION

BOUGAINVILLE

Senator TURNBULL:
TASMANIA · IND; AP from Aug. 1969; IND from Jan. 1970

– I ask the Minister representing the Minister for External Territories a question of my own regarding Bougainville. I refer to the statement made by the Minister for External Territories, Mr Barnes, to the effect that the Administration had a 20% option on equity in Conzinc Riotinto of Australia. Is that statement true? I have been informed that the option can be taken up only if offered. Would the Minister clear up that point? The second point is: Has the Administration taken up the option?

Senator WRIGHT:
LP

– The Senate can be assured that the agreement between Bougainville Copper Pty Ltd and the Papua and New Guinea Administration provides that the Administration may take up 20% of the ordinary share capital of the company at par and that the company is under an obligation to make an offer of that option to the Administration.

Senator TURNBULL:
TASMANIA · IND; AP from Aug. 1969; IND from Jan. 1970

– Has the Administration taken up the option?

Senator WRIGHT:

– The time has not yet arrived for that option to be exercised, but continuing and careful consideration is being given, as the operations of the company develop, to the question whether to take up the option.

page 13

QUESTION

CENSORSHIP

Senator COHEN:

– Has the Minister for Customs and Excise seen a letter in this morning’s ‘Australian’ written by Mr Norman Talbot, a teacher of English at the University of Newcastle, of which the President of the Senate is Chancellor, complaining of the action of the Department of Customs and Excise in seizing some ten books required for research in his university work on a serious study which he believes is of importance to the social and cultural life of Australia? If the Minister is familiar with this case, is it a fact, as alleged by Mr Talbot, that the Vice-Chancellor of the University countersigned one series of applications for the release of these books, which apparently were among hundreds bought in the United States of America while Mr Talbot was a visiting fellow at Yale University? Has the Minister further noted Mr Talbot’s statement that he has no intention of selling or lending microfilms of these texts, that he will not teach or publish them and that he does not intend to lend them to any honourable senator’s teenage daughter? I do not know Mr Talbot, but surely this is an obvious case of a book being required for a bona fide purpose of the type mentioned in the reply that the Minister made to my colleague, Senator Wheeldon, about another censorship matter. Will the Minister have a good look at this case to see whether it is possible for him to make some effort to save Australia from being the laughing-stock of the world in matters of censorship?

Senator SCOTT:
LP

– I have read Mr ‘ Talbot’s letter and I would like to advise the honourable senator that on 9th May 1 gave approval for his application for special release of the ten prohibited publications. On 1 3th May Mr Talbot was advised by letter that his application had been approved and that he should contact the Collector of Customs for New South Wales to take delivery of the books. As Mr Talbot made no approach to the Department of Customs and Excise in this regard. he was contacted. I understand now that he did not receive the letter that 1 wrote to him on 13th May. Action is being taken to release the books to him.

page 14

QUESTION

MAXWELL NEWTON PTY LTD

Senator O’BYRNE:

– My question, which is directed to the Leader of the Government in the Senate, involves civil liberties and human rights. Now that Mr Justice Fox of the Australian Capital Territory Supreme Court has ruled that the search warrants issued for the searches of Maxwell Newton’s home, office and bank records were invalid, will the Government give an assurance that there will be no repetition of a misuse of the Crimes Act to search homes, offices and bank accounts on grounds as flimsy as those on which the warrants were issued against Maxwell Newton? Were not the whole proceedings designed to stop the strong criticism of the Government by Maxwell Newton’s publications in an election year?

Senator WRIGHT:
LP

– The honourable senator will well know that the procedures referred to were followed by legal action. The decision with regard to the validity of the search warrant is still under consideration and may not yet be final. The other decision, which involves Mr Pratt, is one of a most interesting character, lt appears that three cables from the Department of Trade and Industry were practically copied in the handwriting of Mr Pratt and were found, on the search to which Senator O’Byrne has referred, in the offices of Maxwell Newton, having been printed word for word in three separate issues of ‘Incentive’ a few days following the date upon which they were in the Department of Trade and Industry, where Mr Pratt had access to them. In those circumstances, although the magistrate found that in his opinion there was no evidence of communication of those cables by Pratt to Newton, as I say, the cables were practically translated and were in manuscript handwriting, proved to be that of Pratt. Other people are entitled to make their judgment as to whether there was a sound basis in reason and to enforce honesty in administration for the prosecution of Pratt in the circumstances of that case. To impute wrong political motives in any such prosecution is to make a completely spurious suggestion.

page 14

QUESTION

CIVIL LIBERTIES

Senator MURPHY:

– My question is directed to the Leader of the Government in the Senate. Is it in accordance with the standards of this Government that a Minister of the Crown should stand in this Senate and imply that a man is guilty although he has been acquitted by a judicial authority in this community?

Senator Rae:

– He was not acquitted.

Senator MURPHY:

– He was acquitted.

Senator Rae:

– The case was dismissed.

Senator MURPHY:

– Yes, the case was dismissed. The man was found by a judicial authority to be not guilty - whatever quibbling the honourable senator may interject. Is this the standard that this Government is showing to this country on questions of civil liberties and the liability of a citizen who has been charged and has had his matter dealt with before a judicial authority to have his innocence put in question by a Minister of the Crown in the Senate? Is that the standard that the Government is going to tolerate?

Senator ANDERSON:
LP

- Senator Wright responded to a question from Senator O’Byrne who, let me point out, if we are talking in terms of morals and standards, reflected upon the veracity of the Government’s intentions in relation to a prosecution that was launched. That was the basis of the question, and very properly Senator Wright defended the decision that the Government took. He gave the facts which were the basis of the Government’s decision. Quite frankly, I do not think one can go beyond that. Of course, there is a second side to this matter. It is that, just as I have responsibilities - Senator Murphy has directed his question to me - he equally, as Leader of the Opposition, has responsibilities. If he thought there was impropriety in the response Senator Wright gave, he had his responsibility to stand up and use the forms of the Senate when the answer was being given.

page 14

QUESTION

BOUGAINVILLE MINING VENTURE

Senator BRANSON:

– I would like the Leader of the Government in the Senate to tell me and other Government senators whether he has had any discussion with the Leader of the Opposition on the moving of an urgency motion in respect of the

Bougainville incident tomorrow. If there is to be a debate tomorrow, can the Leader of the Government tell me why no questions have been asked about it today, if it is so urgent, and why the motion should not have been moved today instead of tomorrow, when the proceedings will be broadcast?

Senator ANDERSON:
LP

– The discussions that I have behind the chair - which is the traditional way of describing such discussions - are sacred to the Leaders. Therefore I would not dream of revealing discussions I had with Senator Murphy in relation to the management of the Senate unless the matter was one into which I had to bring my Party. I would then do it in a conclave of my Party. That answers the first part of the question. As to the second part, I thought that Senator Wright gave a fair answer. It will be recalled that earlier I indicated that the Minister for External Territories would be making a statement in another place in relation to Bougainville and that Senator Wright would make the same statement on the Minister’s behalf later today in the Senate. I concluded that that was why no questions Save been asked in relation to the matter.

Senator Branson:

– There is no urgency.

Senator ANDERSON:

– Any Government or Opposition senator can use the forms of the Senate to move a motion in relation to such a matter. I think because the proceedings of the Senate are broadcast on Wednesdays matters of urgency are usually raised on Wednesdays.

page 15

QUESTION

DRUGS

Senator MULVIHILL:

– Does the Minister for Customs and Excise feel, in retrospect, that the Marianne Faithful! episode helped the crusade against drug addiction? Does he think that her film star status gave her immunity from police action? Does he feel that the case merits discussions between him and his colleague, the Minister for Immigration, on the question of convictions for drug addiction precluding the possession of an Australian landing visa?

Senator SCOTT:
LP

– The Department is using its best endeavours to stop the entry of drugs into Australia. Recently we chartered a special aircraft for service in the north west of Western Australia, to patrol the coastline to stop prohibited imports, including drugs, from entering Australia. The question of allowing into Australia people who are drug addicts concerns us quite considerably, but it is really a matter for the Minister for Immigration. I shall take this question up with him, see what can be done and advise the honourable senator personally of the decisions that we make.

page 15

QUESTION

PUBLIC SERVICE

Senator CAVANAGH:

– I refer the Minister representing the Attorney-General to his reply to Senator O’Byrne’s question. Is it the Minister’s opinion that the decision in the case of Graeme Pratt was a travesty of justice and not in keeping with the evidence before the court?

Senator WRIGHT:
LP

– I made some reference to the decision of the learned magistrate who dealt with the case of Graeme Pratt and in order to answer the honourable senator’s question I would be impelled to refer to one or two passages from that decision. It is necessary that I be accurate in my response to the question. The magistrate said:

I am satisfied the defendant did commit to writing all or part of the documents to which we have referred.

They are the three cables that were confidential information in the Department of Trade. The magistrate also said:

I am satisfied the documents found at 35 Kent Street were, in fact, those committed to writing by the defendant.

The magistrate said, in effect, that he was also satisfied that if Pratt did communicate a document then he was not authorised to do so. I have not quoted the whole of that sentence. The magistrate said:

In my view there is not a shadow of doubt that these documents were communicated either to Newton, his wife or some person connected with 55 Kent Street, Deakin. The first question is, how was this done and on (be evidence 1 am unable to answer this question. The second question is, when was it done and on the evidence, also, I am quite unable to answer that. The third question - I may be excused for using a nonjudicial term - the sixty-four dollar question is, by whom was this information communicated and on the evidence before me I would answer that question by saying, ‘probably by the defendant’.

Now, that answer would be based on suspicion and not on evidence. Let me say quite emphatically that the clouds of suspicion lie very heavily on the head of the defendant. It has never been the law to my knowledge, and I trust it never will be, that a man can be convicted or even required to stand his trial on suspicion alone and nothing else. So heavy and thick are these clouds of suspicion indeed that even the slightest thread of evidence, the barest thread, the minimum of evidence, that the defendant had in some way communicated these documents would, in my opinion, have been sufficient to have caused me to commit the defendant for trial.

I have searched the evidence minutely but I cannot find that thread which would convert suspicion into possible guilt.

I have quoted that to show the basis upon which I express an opinion - as I was invited to do by the honourable senator - on the question as to whether the magistrate was in error in finding that there was no evidence that Pratt communicated the document to the Press. I point out that there were three documents, not one. They were all in the handwriting of Mr Pratt. They were all published by the Newton Press soon after they were in the custody to which Mr Pratt had access. I am bound to say with some respect - I hope not a disproportionate degree - for my own opinion, that I hold the firm opinion that there was not only some evidence but strong evidence that those manuscript documents copying cables from the Department of Trade and Industry, which were found printed a few days later in the Newton Press, not on one occasion but on three occasions, were communicated by Mr Pratt to the Press.

page 16

QUESTION

WHEAT

Senator O’BYRNE:

– I wish to ask a question of the Minister representing the Minister for Primary Industry. Is it not true that the Australian Wheat Board and wheat growers of Australia are deeply concerned about lack of storage for surplus wheat, of which there is known so far to be over 200 million bushels? In view of the fact that there are about 20 million starving sheep in Queensland and West Australia which are dying to act as storages for surplus wheat, when will the Government practise what it preaches and eliminate starvation, in the midst of plenty, in the breeding stock of Australia?

Senator McKELLAR:
CP

– I have already answered this question when replying to two earlier questions. I cannot make the position plainer than I did earlier.

page 16

QUESTION

THE KING’S SCHOOL, PARRAMATTA

(Question No. 1256)

Senator WHEELDON:

asked the Minister representing the Minister for Education and Science, upon notice:

  1. Is it a fact that a Liberal Party political meeting will be held at The King’s School, Parramatta, on Saturday 24th May 1969 at 2.30 p.m., under the auspices of the Parramatta Conference of the Liberal Party.
  2. Has this school received considerable financial aid from the Commonwealth.
  3. If the answers to the foregoing questions are in the affirmative, will the Minister ensure that, if other political parties make application to the King’s School for the use of the school premises for political meetings, they also will be able to make use of the premises and facilities, substantially paid for by taxpayers of all political persuasions.
Senator WRIGHT:
LP

-The Minister for Education and Science has provided the following reply to the honourable senator’s question: (1), (2) and (3) The Commonwealth has granted $12,000 to the King’s School, Parramatta under its program of assistance for science laboratories and equipment in Government and independent secondary schools. The Commonwealth does not regard it as appropriate for it to seek to exercise any control over the premises of Government or independent schools assisted under this or similar programs. I have no knowledge of the meeting referred to.

page 16

QUESTION

CHEMICAL AND BIOLOGICAL WARFARE DEFENCE

(Question No. 1264)

Senator GEORGES:

asked the Minister for Supply, upon notice:

Is it possible for any experiments in chemical or biological warfare to be conducted by the Department of Supply or by any other Department, anywhere in Australia, without the knowledge of the Minister.

Senator ANDERSON:
LP

– The answer to the honourable senator’s question is as follows:

In replying to this question I wish to reemphasise that the work being carried out in this field in Australia is of a defensive nature only.

Senator Georges:

– Is the answer yes or no?

Senator ANDERSON:

– Does the honourable senator want an answer?

Senator Georges:

– It is just that the answer should be yes or no.

Senator ANDERSON:

– The honourable senator is displaying shocking manners. I have not finished giving the answer and the honourable senator is making a judgment before he hears the whole answer. I will proceed with the answer.

The broad scope of the research programme of the scientists working on chemical and biological defence at the Defence Standards Laboratories is formulated within existing Government policy and submitted through the appropriate Committees of the Department of Defence to the Minister for Defence for approval. These scientists are then obliged to work within that approved programme. Any change in policy as to the scope of the work would require consideration by the Cabinet.

From the outset of this work in Australia, the Government placed an absolute prohibition on experiments using bacteriological agents. In fact, as I have advised the Senate previously, no pathogenic agents are used in Australia in relation to biological defence.

In the chemical field, the Government has placed an absolute prohibition on research of an offensive nature, such as developing new chemical agents. Research into defensive measures against existing chemicals involving field tests cannot be undertaken without Ministerial approval.

Thus, the answer to the Senator’s question is: No, the type and scope of research into chemical and biological defence conducted in Australia is known to Ministers and experiments could not be carried out by my Department or by any other Department, anywhere in Australia, without the knowledge of the appropriate Minister.

Senator Georges:

– The Leader of the Government in the Senate has accused me of shocking manners.

Senator ANDERSON:

– We are dealing with questions on notice.

The DEPUTY PRESIDENT (Senator Drake-Brockman) - Senator Georges, you may ask for leave later to make a statement.

page 17

QUESTION

MAIL SERVICES

(Question No. 1273)

Senator KEEFFE:

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

  1. Is the Australian postal system being used for the distribution of football pool coupons.
  2. Has the Postmaster-General’s Department given official permission for the Australian mail service to be used for this purpose; if so, on what date was such a permit granted.
Senator Dame ANNABELLE RANKIN:

– The Postmaster-General has provided the following answer to the honourable senator’s question:

  1. Yes, and has been so used for many years.
  2. Postal Administrations are obliged to deliver, as addressed, all fully prepaid items of mail from other countries provided such items are not prohibited imports in the country to which they are addressed. As football coupons are not a prohibited import into Australia, no special approval is required for their postal transmission.

page 17

QUESTION

BACARDI RUM

(Question No. 1289)

Senator KEEFFE:

asked the Minister representing the Minister for Trade and Industry, upon notice:

  1. Is the importation of Bacardi rum a possible threat to the Australian rum industry.
  2. Have any representations been made by Australian rum distillers to protect the Australian industry; if so, what action is intended by the Government.
Senator ANDERSON:
LP

– The Minister for Trade and Industry has provided the following answer to the honourable senator’s question:

  1. and (2) Should the Australian rum distillers consider, at any time, that the level of imports is such as to pose a threat to the Australian rum industry, it would be open to them to approach the Department of Trade and Industry for a revision of the protection accorded against imports. No such representations have been received to date.

Fill AIRCRAFT (Question No. 1301)

Senator KEEFFE:

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

  1. Is it not a fact that the decision to purchase the Fill in 1963 was taken by the Government during a period when the Parliament was in recess.
  2. Is it also a fact that the Government was strongly criticised by British aircraft manufacturers and the British Government and consequently decided to purchase two BAC111s for the VIP fleet.
Senator McKELLAR:
CP

– The Minister for Air has provided the following answer to the honourable senator’s question:

  1. The Government decided to purchase the Fill on 23rd October 1963, and an announcement was made to this effect in both Houses on the following day. Both the decision and announcements were made during the first session of the twenty-fourth Parliament (fourth period).
  2. The Government decided to purchase two BACIII aircraft on 24th November 1965, to replace two Convair Metropolitan aircraft of No. 34 Squadron. This decision was not in any way connected with the decision to purchase the Fill.

Fill AIRCRAFT (Question No. 1267)

Senator COHEN:

asked the Minister representing the Minister for Defence, upon notice:

  1. What amount has been paid by Australia to date, under the agreement, for the purchase of twenty-four Fill aircraft.
  2. What further amounts will become due under the contract during 1969, and on what dates.
Senator ANDERSON:

– The Minister for Defence has provided the following answer to the honourable senator’s question:

  1. The amount paid in respect of the purchase of the Fill aircraft and associated equipment to 31st May, 1969, was $173,748,450.00.
  2. $9,329,503.00 is due to be paid to the Treasurer of the United States this month. The latest advice from the United States Air Force is that payments for the quarter ending 30th September, 1969, will be of the order of $15,000,000.00 and for the quarter ending 31st December, 1969, of the order of $9,000,000.00.

page 18

QUESTION

EDUCATION

(Question No. 865)

Senator MCCLELLAND:

asked the Minister representing the Prime Minister, upon notice:

  1. Did the Minister for Education and Science announce last December that the Commonwealth would make a gift of $3.6m to assist independent school building programmes in the Australian Capital Territory.
  2. In October 1968, did the New South Wales Government ask the Commonwealth for urgent approval to borrow $5m to build extra schools and classrooms, and was the application rejected.
  3. Was this request for a special loan one on which, if granted, the New South Wales Government would pay interest.
  4. What was the reason for the Commonwealth’s rejection of the application by the New South Wales Government.
  5. Does the reason advanced by the Commonwealth at that time still exist in the opinion of the Treasurer.
Senator ANDERSON:
LP

– The answer to the honourable senator’s question is as follows:

  1. No. The terms of the announcement at the time were: - “The Minister for Education and Science has announced a variation in the arrangements under which the Commonwealth assists independent school authorities in the Australian Capital Territory to build and extend primary and secondary schools.

Since November, 1965, the Commonwealth has accepted responsibility for repaying the amounts borrowed for approved school building projects, together with interest, subsidy up to the level of the long-term bond rate, over 20 year periods. However independent schools built in the Australian Capital Territory with Government approval between 1956 and 1965 have been the subject of interest subsidy only on the money borrowed to build them. The Government will change the arrangements for these earlier projects by taking over the repayment of the outstanding capital and continuing to subsidise interest payments for the outstanding periods of the present loans, up to a limit of 20 years.

Mr. Fraser said this action was being taken to assist the independent schools in the Australian Capital Territory to carry on with their school building programmes.”

  1. No. On 4 October the Premier of New South Wales wrote to the Prime Minister inquiring whether the Commonwealth would support an increase of $5m in his State’s allocation under the borrowing programmes approved by the Loan Council for State works and housing in 1968-69. The Premier stated that this increase was required to enable a supplementary school building programme to be undertaken. The Premier was informed that the Commonwealth Government could not agree, at that stage of the year, to support in the Loan Council a request for such an increase.
  2. Yes.

  3. The Commonwealth Government did not support the request by the Premier of New South Wales because of:

    1. the large estimated increase in 1968-69 in capital funds available to the States from the Loan Council borrowing programmes and from direct Commonwealth assistance;
    2. the need to restrain the recent rapid growth in public authority expenditure - parcularly public authority capital expenditure - in order to achieve a more appropriate balance between the public and private sectors and to ensure the preservation of a stable economy;
    3. the implications in relation to other States and other areas of Government expenditure where, it could be argued, additional funds were equally required for various other improvements to services.
  4. The Government believes that the reasons as stated have had continuing validity throughout 1968-69. However, in order to help the States improve their budget results, the Government announced at the Premiers’ Conference held on 13 March that it would provide special revenue assistance in 1968-69.

page 19

QUESTION

FERTILISERS

(Question No. 1159)

Senator PROWSE:
WESTERN AUSTRALIA

asked the Minister for Customs and Excise, upon notice:

  1. ls it a fact that press releases emanating from an overseas chemicals company have claimed that fertiliser prices in certain countries have fallen by 50% over the last 5 years.
  2. Will the Minister affirm or refute these statements.
  3. Will the Minister make available representative prices currently being paid by farmers in the ‘ United Kingdom, the European Economic Community and the United States of America, compared with prices paid by Australian farmers for similar fertilisers.
Senator SCOTT:
LP

– The answer to the honourable Senator’s question is as follows:

  1. Yes.
  2. The attached Table No. 1 sets out the average American wholesale prices, $U.S. per short ton in 1963 and 1968. While most prices have fallen, there is no indication that prices have fallen by as much as 50%. In the United Kingdom prices of all the commonly used fertilisers have risen in the period 1964-69. For the European Economic Community the available information indicates that fertiliser prices over the last 5 years have not fallen to any extent and in some countries prices have been steadily rising.
  3. The attached Table No. 2 sets out the average prices paid for the main fertilisers in

Australia and the specified overseas countries, as at April 1969, with overseas prices converted at ruling rates oi exchange (July 1969). Statistics showing the price actually paid by farmers are only available for the United Kingdom and the United States. For strict comparability, an amount to cover freight and cartage would need to be added to the price quotations for other countries. National average charges on fertilisers for freight and cartage are not available. As an indication of the importance of this component, prices paid by United States farmers for urea varied from a low of SA72 per ton in Arkansas to a high of SA106 per ton in Florida. A similar situation applies in Australia; freight and cartage are significant elements in the cost of fertilisers delivered on farm.

I would also draw your attention to the reply given by Senator McKellar on 19th November last to a question on the same subject.

page 20

QUESTION

WHEAT

(Question No. 1160)

Senator HENDRICKSON:

asked the Minister representing the Prime Minister, upon notice:

  1. Is it a tact that, because the Commonwealth Government would do nothing to help make the wool industry profitable by means of orderly marketing or subsidy, woolgrowers transferred their production to wheat, thus causing overproduction beyond the ability of the Wheat Board to sell; and further, that, because the Government entered into an International Grains Agreement which raised the minimum price, the Wheat Board, last August, lost a sale of up to seventy million bushels to China because China would not pay the higher price when she could buy cheaper wheat elsewhere, viz. Canada.
  2. Will the Government consider assisting the wheat industry by purchasing one million tons (approximately forty million bushels) of wheat and giving it to those countries where starvation exists.
  3. Is it a fact that the Government only raised the minimum price of wheat under the International Grains Agreement so that the Treasury would not have to provide so much money to bring the price up to the amount guaranteed under the Wheat Stabilisation Plan.
Senator ANDERSON:
LP

– The Prime Minister has provided the following answer to the honourable senator’s question:

  1. The wool growing industry benefits directly and indirectly from a wide range of measures of Government assistance. The present Commonwealth Government has always stood ready to consider the provision of all reasonable assistance in implementing proposals designed to improve the economic welfare of the wool industry and which have the support of all sections of the industry.

With respect to wheat, it has been a matter for farmers themselves to decide whether or not to expand production in the light of their individual circumstances. This year the Australian Wheat Growers’ Federation has proposed that a system of delivery quotas to the Australian Wheat Board should be introduced and this has been approved by the Commonwealth and all State Governments.

The outcome of normal commercial negotiations between the Wheat Board and its individual customers is a matter for the parties concerned. However, it is relevant to observe that the contract earlier this year under which the Wheat Board will supply 2.2 million tons to Mainland China represents the largest sale ever to that market. Mainland China also purchases wheat from Canada, France and Argentina.

  1. The Commonwealth Government has been making substantial gifts of wheat and flour to developing countries for many years. A development of major importance is the provision of food aid under the Food Aid Convention of the International Grains Arrangement which came into force on 1st July 1968. Under this agreement, a number of developed countries, including both importing and exporting countries, have agreed to provide the less developed countries with 4½ million metric tons of grain per annum for the three years 1968-1969 to 1970-1971.

Australia’s annual contribution under the Food Aid Convention is assessed at 225,000 tons and in 1968-1969 aid in the form of wheat or flour was sent to India, Pakistan, Afghanistan, Korea, Indonesia, Fiji, Ceylon and Nigeria.

  1. The minimum prices established under the Wheat Trade Convention of the International Grains Arrangement were the subject of negotiation and agreement. Australia’s prime objective in these negotiations was to achieve minimum price levels which would be equitable to both importers and exporters.

page 20

QUESTION

COTTON

(Question No. 1141)

Senator MULVIHILL:

asked the Minister representing the Prime Minister, upon notice:

  1. What Commonwealth Government aid was rendered to either the original cotton producers in New South Wales or the Government of that State to establish this industry.
  2. Does such aid, direct or indirect, still continue.
Senator ANDERSON:
LP

– The Prime Minister has supplied me with the following answer to the honourable senator’s question:

My colleague the Minister for Primary Industry has informed me that -

  1. The Commonwealth Governmenthas assisted the development of the cotton industry by means of the cotton bounty. This has been the only assistance provided by the Commonwealth.

In 1951 a Commonwealth bounty was introduced which provided for an average minimum return of 9½ pence perlb. on all seed cotton produced in Australia. The average minimum return was increased in 1953 to 14 pence per lb. which applied until 1963. The cotton growing industry in New South Wales, which started in 1962, was eligible for the benefit of this and subsequent bounty arrangements.

In the Raw Cotton Bounty Act 1963 the Commonwealth Government provided for the payment of bounty, commencing with the 1964 crop, within the limit of $4 million, on raw cotton lint produced and sold for use in Australia. This Act was amended in 1968 to provide for the payment of bounty on raw cotton lint produced in Australia from the 1968 crop.

Since the introduction of the raw cotton bounty the following payments have been made in respect of cotton produced in New South Wales -

  1. An amendment to the Raw Cotton Bounty Act in April 1969 provides for the continuation of the bounty on raw cotton lint producedin Australia for a further three years commencing in 1969. The bounty will be phased out during this period.

In 1969 the financial ceiling will be$4 million, in 1970$3 million, and in 1971 $2 million. This will be the final year in which bounty will be payable.

The most recent estimates show that on an Australian production of 167,000 bales, bounty payments to New South Wales producers in respect of the 1969 crop will approximate $3,154,000.

page 21

QUESTION

MINING

(Question No. 1183)

Senator BISHOP:

asked the Minister rep resenting the Prime Minister, upon notice:

Is is a fact, as disclosed by a survey conducted by the Australian Mining Industry Council, that there is a serious shortage of mining, civil, electrical and mechanical engineers, which will continue and retard the development of the Australian mining industry; if so, what steps have been taken, by special Federal Government assistance to universities, as suggested by the Council, or by other means, to provide adequate professional personnel.

Senator ANDERSON:
LP

– The Prime Minister has provided the following answer to the honourable senator’s question:

I understand that the question refers to the preliminary results of a professional staff requirement survey conducted by the Australian Mining Industry Council during 1968. I am informed that the survey report included a table indicating shortages of engineers as at December 1967 and estimated requirements of engineers in 1972. The 1972 estimates suggested that the mining industry would need a considerable additional number of engineers over and above its requirements in 1967.

We have been unable to trace any suggestion by the Council of’special Federal Government assistance to universities’. The executive of the Mining Industry Council in Canberra has been contacted and in unaware of any such suggestion having been made.

Shortages of labour have been a fairly general characteristic of the Australian economy ever since the end of World War II. Generally speaking, shortages of skilled personnel are greater than for the unskilled, and within the skilled groups, shortages of engineers are among the more noticeable. In the case of the mining industry, locational differences are also particularly important. Many jobs for engineers in the industry require residence in remote locations. At the same time engineering is, to some extent, an international profession and mining companies, particularly those with international affiliations, are in a position to attract qualified engineers from a variety of overseas countries.

The following table shows the additional number of graduates in mining, civil, electrical and mechanical engineering which the universities estimate will be produced in the years up to and including 1972, compared with the Australian Mining Industry Council’s estimate of requirements:

In addition to the graduates of the universities, there will also be the output of qualified personnel from the colleges of advanced education. In 1969 the total enrolment in colleges of advanced education in civil, mechanical, electrical and mining engineering, and allied disciplines such as applied and mining geology, is 9,430 - comprising 4,481 full-time and 4,949 part-time students. These courses are provided in 19 colleges in the six States and the enrolment in them represents approximately 25% of the total enrolment in all college courses. The projections show significant increases in enrolments in engineering courses over the 1970-1972 triennium.

One-third of the joint Commonwealth/State capital programme at colleges of advanced education during the 1967-1969 triennium is being devoted to the provision of facilities for engineering, metallurgy and mining courses. This capital expenditure is being incurred on fifteen projects in eleven colleges.

There is no reason to suppose that the mining industry will not be able to recruitthe numbers of engineers of different kinds which it estimates it will require by 1972.

page 21

QUESTION

CUSTOMS OFFICERS

(Question No. 1222)

Senator WHEELDON:

asked the Minister for Customs and Excise, upon notice:

With reference to the answer on 30 April 1969, to Question No. 1182, asked by Senator Wheeldon which referred to the prosecution of two Customs Officers in Fremantle for allegedly accepting bribes, in which the Minister replied that, as the charges had not been heard, he was not able to say whether the persons who had paid the alleged bribes would be prosecuted, and as one of the officers charged, Mr Frederick James Loveday, was tried and convicted by the Fremantle Police Court on 8 May, can the Minister now inform the Senate whether the man who allegedly paid the bribe is to be prosecuted.

Senator SCOTT:
LP

– The answer to the honourable senator’s question is as follows:

After seeking the opinion of the Deputy Crown Solicitor, it has been decided not to institute proceedings against the witnesses in the Loveday case.

page 22

QUESTION

ARBITRATION

(Question No. 1241)

Senator CAVANAGH:

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

  1. Who paid the fines imposed upon the Victorian Tramways Union.
  2. Was it the same authority which recently paid the fines of three boilermakers in Western Australia after industrial action was threatened.
  3. Do these mysterious payments indicate that, while penal provisions of the Conciliation and Arbitration Act will still operate, any well supported industrial opposition to payment of penalties imposed will result in payments being made by unknown authorities.
  4. Has Clarence O’Shea defeated the penal provisions of the Conciliation and Arbitration Act.
Senator WRIGHT:
LP

– The Minister for Labour and National Service has provided the following answer to the honourable senator’s question:

  1. Mr Dudley McDougall, a private citizen.
  2. This matter did not occur in a Federal jurisdiction. It was a matter involving the Western Australian Industrial Appeals Court, which, of course, operates under the legislation appropriate to that State.
  3. There has been no instance where settlement of penalties imposed under the Commonwealth Conciliation and Arbitration Act has been accepted from an anonymous source.
  4. The Honourable Senator is reminded that Clarence Lyell O’Shea was summoned to appear before the Commonwealth Industrial Court to be examined in respect of the books and records of bis Union. He refused to obey a lawful order of the Court and was proceeded against for being in contempt of court.

page 22

QUESTION

TRACTOR TESTING

(Question No. 1242)

Senator COTTON:
NEW SOUTH WALES

asked the Minister representing the Minister for Primary Industry, upon notice:

Does the Government intend to give long-term financial support to the tractor testing station at Werribee, near Melbourne.

Senator McKELLAR:
CP

– The Minister for Primary Industry has supplied the following answer to the honourable senator’s question:

Since the inception of the Australian Tractor Testing Scheme in 1954 the Commonwealth has met one half of the costs of establishment and operation of the Tractor Testing Station at Werribee, Victoria. Early difficulties in obtaining tractors for testing were overcome and in recent years the Station has operated close to or at maximum capacity with available staff and facilities.

The operation of the Station is currently being financed under an interim arrangement between (he Commonwealth and Victorian Governments. Representations have been made by the Premier of Victoria and the Minister of Agriculture, Victoria proposing longer-term arrangements for financing the operation of the Station and for some expansion of its activities. These representations are being considered by the Government and I will arrange for the Honourable Senator to be informed as soon as a decision has been reached.

page 22

QUESTION

INDUSTRIAL DISPUTES

(Question No. 1244)

Senator CAVANAGH:

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

  1. What effect has the enforcement of the penal provisions of the Conciliation and Arbitration Act had upon the prevention or settling of industrial disputes.
  2. What have been the man-hours lost through industrial disputes each year over the past 10 years.
  3. How many prosecutions, under the penal provisions of the Act, have been made over the same period.
  4. What fines were imposed during this period.
Senator WRIGHT:
LP

– The Minister for Labour and National Service has provided the following answer to the honourable senator’s question:

  1. The purpose of the sanctions provisions to be found in sections 109 and 111 of the Conciliation and Arbitration Act, as with the sanctions provisions of any legislation, is to seek to ensure that all parties observe obligations imposed on them under the law.
  2. The Commonwealth Statistician records time lost through industrial disputes in working-days. In respect of each year over the past 10 years the number of working-days lost through industrial disputes are:
  3. During the period 1st January, 1959 to 31st December, 1968 there were 1,226 actions under section 111 of the Act
  4. During this same period fines amounting to $282,660 were imposed.

page 23

QUESTION

ARBITRATION

(Question No. 1247)

Senator KEEFFE:

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

Is the Minister prepared to use his good offices with the Minister whom he represents in the Senate to have all penal sections of the Conciliation and Arbitration Act abolished; if so, how soon will he make such representations.

Senator WRIGHT:
LP

– I have nothing to add to the answer I gave to a question in the same terms which the honourable senator asked me without notice on 20th May last (Hansard, page 1354).

page 23

QUESTION

WEST IRIAN

(Question No. 1259)

Senator GEORGES:

asked the Minister representing the Minister for External Territories, upon notice:

  1. Did Indonesians cross the border from West Irian into the Territory of Papua and New Guinea on 26th April 1969.
  2. Did they, by shooting, put to flight unarmed Australian officials.
  3. Did they then search, house by house the settlement of Wutung and place people under arrest.
  4. Did senior officers of the Department of External Territories demand that a strong formal protest be made to the Indonesian Government.
  5. Were the officers of the Department of External Territories prevented from doing this by the Department of External Affairs.
Senator WRIGHT:
LP

– The Minister for External Territories has provided the following answer to the honourable senator’s question:

  1. to (3) A ministerial statement regarding the incident at Wutung on 26th April 1969 and the action taken by the Government in consequence was made to the Parliament on 30th April 1969.
  2. and (5) The Government’s actions are the responsibility of Ministers not officials.

page 23

QUESTION

JOINT DEFENCE SPACE RESEARCH FACILITY, ALICE SPRINGS

(Question No. 1265)

Senator ORMONDE:

asked the Minister for Supply, upon notice:

With reference to disturbing reports from America that tests of biological and chemical warfare materials have been made in the open air, and that volunteers have been injected with nerve gas to test its effectiveness on humans, and in view of suggestions that Pine Gap, despite its alleged role as a space research facility, may also be used as a testing centre for biological and chemical warfare materials, will the Government breach the secrecy barrier surrounding Pine Gap to assure the Australian public that such horrifying tests will not be undertaken there.

Senator ANDERSON:
LP

– The answer to the honourable senator’s question is as follows:

The Joint Defence Space Research Facility at Alice Springs comes under the jurisdiction of the Minister for Defence, who has provided the following information:

The Facility at Alice Springs will undertake a variety of space research projects. The honourable senator may be assured that these research projects do not include chemical and biological warfare testing and no such tests will be carried out at the Facility.

page 23

QUESTION

WEST IRIAN

(Question No. 1266)

Senator ORMONDE:

asked the Minister representing the Prime Minister, upon notice:

  1. Is the Prime Minister aware that the New Guinean and Papuan members of Parliament, who visited this Parliament on 21st May, 1969, have strongly criticised the so-called act of free choice which will ensure that Indonesia keeps control of West Irian.
  2. As this opinion comes from representatives of the people who will be greatly affected by the political repression of their neighbours, will the Government take more notice of it than it has taken of the disquiet expressed by the Minister for External Territories.
  3. Will the Government move to settle the serious conflict of policy over the West Irian situation between the Minister for External Territories and the new Minister for External Affairs.
Senator ANDERSON:
LP

– The Prime Minister has provided me with the following answer to the honourable senator’s question:

  1. and (2) I am aware of Press reports on this subject.
  2. The Ministers for External Territories and External Affairs have advised me that there is no conflict of policy regarding West Irian between them.

page 23

QUESTION

F111 AIRCRAFT

(Question No. 1268)

Senator COHEN:

asked the Minister representing the Minister for Defence, upon notice:

What would be the cost to Australia of cancelling the order for twenty-four F111 aircraft.

Senator ANDERSON:
LP

– The Minister for Defence has provided the following answer to the honourable senator’s question:

In the hypothetical circumstances advanced the matter would be one for negotiation between the United States and Australian Governments.

page 24

QUESTION

DEFENCE EQUIPMENT

(Question No. 1270)

Senator BISHOP:

asked the Minister rep resenting the Minister for Defence, upon notice:

Has the recent cancellation, by the Government of the United States of America, of orders upon an American Aircraft Manufacturer, to the value of $US700m, allegedly because of faulty workmanship on aircraft for United States Army Units, had any impact in respect to American manufactured defence equipment now being used by or ordered for the Australian armed services.

Senator ANDERSON:
LP

– The Minister for Defence has provided the following answer to the honourable senator’s question:

I assume the honourable senator is referring to the reported cancellation by the United States Army of a production contract with Lockheed Aircraft Corporation to build Cheyenne helicopters.

The Australian Services have not bought Cheyenne helicopters or any other helicopters made by the Company mentioned.

page 24

QUESTION

PREFABRICATED STEEL

(Question No. 1272)

Senator MILLINER:
QUEENSLAND

asked the Minister representing the Minister for Trade and Industry, upon notice:

Has any licence been granted by the Government for the importation of prefabricated steel for use on the third stage of construction of the alumina plant at Gladstone; if not is it likely that one will be granted in the foreseeable future.

Senator ANDERSON:
LP

– The Minister for Trade and Industry has provided the following answer to the honourable senator’s question:

The importation of prefabricated steel is not subject to import licensing. Any such material which is imported would be subject to rates of duties as laid down by the Customs Tariff.

page 24

QUESTION

CITIZEN MILITARY FORCES

(Question No. 1275)

Senator WILLESEE:
WESTERN AUSTRALIA

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

Is the Citizen Military Forces unit at Midland Junction, Western Australia, to be disbanded; if so. why, and to what town will members of the Citizen Military Forces from the Midland area have to travel to attend parades.

Senator McKELLAR:
CP

– The Minister for the Army has provided the following answer to the honourable senator’s question: 1st Terminal Group Workshop which is at present located at Midland Junction is to be disbanded, simply because there is no terminal group located in Western Command for the Workshop to support.

The members of the unit will be able to transfer either to Western Command Workshop, also at Midland Junction, or to 113 Field Workshop located in Artillery Barracks, Fremantle, about 14 miles from Midland Junction.

page 24

QUESTION

DEFENCE COMMUNICATIONS

(Question No. 1276)

Senator ORMONDE:

asked the Minister representing the Minister for Defence, upon notice:

  1. Can the Minister confirm the accuracy of a map, dated 18th May 1968 distributed by Plessey, a United Kingdom company, showing the existence in South Australia, of land mobile equipment marked:

page 24

QUESTION

USA-DOD

18” Cloverleaf Mobile

IDCSP Radiation.

  1. Is this equipment part of the United States interim defence communications satellite programme.
  2. What purpose does it serve in Australia.
  3. How long has it been here.
  4. Who authorised its use.
Senator ANDERSON:
LP

– The Minister for Defence has provided the following answer to the honourable senator’s question:

  1. The diagrammatic antenna shown on the map of Australia represents a mobile 18 foot antenna (not 18 inches as in the question).

There is no significance in its location on the map which is merely symbolic. In fact, the equipment is not in South Australia, but at the Northwest Cape.

  1. Yes.
  2. The IDCSP terminal serves as a back-up communications link, via satellite, from the NorthWest Cape (Harold E. Holt) Station to the United States. It was described in the Press last February.
  3. For more than a year.
  4. The terminal was put at North-West Cape with the knowledge and approval of the appropriate Australian authorities within the framework of existing arrangements with the United States.

page 25

QUESTION

NATIONAL SERVICE

(Question No. 1282)

Senator KEEFFE:

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

  1. Is a veterinary surgeon currently undergoing infantry training as a national serviceman at the Singleton training camp.
  2. Is it normal practice to use highly trained personnel as ordinary infantrymen.
  3. If this is the accepted practice, how many national servicemen holding university degrees and diplomas have been required to serve or are serving as infantrymen.
  4. Would not qualified people be better employed serving in a civil capacity in a position in keeping with their training.
Senator McKELLAR:
CP

– The Minister for the Army has provided the following answer to the honourable senator’s question:

  1. Yes.
  2. The purpose of the National Service Scheme is to provide the Army with sufficient manpower to meet its military commitments, and the allocation of national servicemen to the various corps is geared to meet this requirement. The Army endeavours to utilise the professional qualifications of its members in appropriate military postings where this is possible. However, where the number of professionally qualified national servicemen exceed the requirement or where no need exists for a specialised skill, they must be allocated in the most efficient military manner and trained in other fields where their services are required.
  3. Army records indicate that, of approximately 16,000 national servicemen at present serving, 396 hold degrees or diplomas, 179 of this number were accepted for officer training, while 34 are serving as other ranks in the Infantry Corps. In this regard, Infantry is the Army’s largest Corps and its allocation of national servicemen whose professional skills cannot be used could be expected to be proportionately high.
  4. In introducing National Service, the Government made it clear that, apart from the exemption from military service of ministers of religion, which is of long standing, and of those who are training to this end, there could be no provision for exemption from liability to render service on occupational grounds. There are, as the honourable senator will appreciate, quite a number of professional or occupational groups on whose behalf seemingly persuasive reasons can be, and indeed have been, advanced for exemption including their value to the community in civil life. It is inescapable that once breached for any such group the fundamental bases of the National Service Scheme of universality and equity would fall.

page 25

QUESTION

UNDERGROUND WATER

(Question No. 1284)

Senator CAVANAGH:

asked the Minister representing the Minister for National Development, upon notice:

  1. Has any survey been made to ascertain the full quantity of underground water available on Eyre Peninsula, South Australia.
  2. Has the South Australian Government sought Commonwealth financial assistance for the construction of a system of branch mains to supply water to Kimba, South Australia; if so, what has been the Federal Government’s response.
Senator SCOTT:
LP

– The Minister for National Development has provided the following answer to the honourable senator’s question:

  1. Under the Australian Constitution the assessment and development of water resources in the various States is the responsibility of the State Governments. However, information is received from time to time from the relevant water authorities by way of reports on activities, and in broad terms the position might be summarised as follows:

The underground water resources of the Peninsula have been assessed where they are usable both with regard to quantity and quality. Approximately 90% of the area contains ground, water which because of salinity is unsuitable for nearly all uses, and assessment of these areas is not warranted. Better quality water is found in several basins along the west coast of the Peninsula.

If more specific information is required this might be obtained from the South Australian authorities.

  1. Yes. This project was considered with others submitted by State Governments under the National Water Resources Development Programme. It was not included in the short list of projects for closer examination, which was announced by the Minister for National Development in May 1968. It will no doubt be realised that there is a limit to the amount of finance which can be made available for development projects and consequently an assessment of those submitted was made on the basis of greatest national benefit. As the honourable senator already knows, a sum of$6 million has been made available to the South Australian Government for a pipeline from Tailem Bend to Keith, and associated rural distribution works.

page 25

QUESTION

POSTAL DEPARTMENT

(Question No. 1288)

Senator McMANUS:

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

  1. What is the reason for the postal grades structure plan recently determined for the Post Office and what stage has been reached in its implementation.
  2. Is this plan calculated to cause industrial trouble particularly in view of the contention of the Union of Postal Clerks and Telegraphists that it will depress educational standards, hamper recruiting, break down the career quality in training, lessen efficiency and cause losses in relative salaries.

Senator Dame ANNABELLE RANKIN The Postmaster General has provided the following answer to the honourable senator’s question:

  1. and (2) The present staffing structure in Post Offices and Mail Exchange Branches does not effectively meet modern demands and there is a real need to revise the current organisation.

The revised structure takes account of the following requirements, some of which have been represented by the Staff Associations concerned: the number of work levels should be at the minimum necessary for full and effective working; reasonable career prospects should be provided for those, with the necessary aptitude and ability, entering at the base level; the number of tests, examinations and barriers to advancement through the structure should be at a minimum; classification levels should be simplified and rationalised consistent with action taken in relation to other work areas in the Service; there should be an adequate flow of officers to higher positions in the structure; juniors in Post Offices and Mail Exchange Branches should receive salary treatment not less favourable than juniors in other areas of the Service or in private industry; the nature and requirement of functions at particular levels should not require limitation of staffing to persons with Third Division qualifications (only 600 Postal Clerks, Third Division, are available for promotion yet approximately 2,000 fully trained Postal Clerks, Fourth Division cannot advance to higher positions because of the Divisional barrier); barrier tests for advancement within the salary scale of particular positions should be rationalised and simplified.

The new Postal Levels Structure, having been based on the foregoing, provides benefits both for the staff concerned and the Department.

The Amalgamated Postal Workers’ Union and the Postal Overseers’ Union have accepted the revised structure without prejudice to claims previously lodged with the Public Service Arbitrator by those Unions for higher salaries. These two Unions represent approximately 77% of the work force employed in the area affected by the new Postal Levels Structure, namely, the Post Offices and Mail Exchange Branches. The Administrative and Clerical Officers’ Association, the Australian Postmasters’ Association and the Union of Postal Clerks and Telegraphists have not yet accepted the structure. Discussions with these Unions are continuing.

Under the new structure, emphasis is being placed upon tests designed to measure aptitude and ability for particular work rather than upon formal educational levels. The new approach will make possible a career uninterrupted by lack of formal educational qualifications but requiring the passing of tests specially related to the type of work to be carried out in the new structure. Special training courses will be introduced which will include guided educational qualification in subjects pertinent to the work.

The Department and the Public Service Board do not believe that this change in the method of qualifying for certain positions in the new Postal Levels Structure will depress educational standards, hamper recruitment, break down the career quality in training or lessen efficiency. In fact, it is expected that the opposite will be the case in each instance.

Except for the occupants of positions of Postal Clerk-in-training, all officers and employees serving in positions covered by the new Postal Levels Structure at the time of application of that structure receive increases in salary. These increases result, firstly, from higher classifications attached to working levels and, secondly, from the translation of personal salaries in moving from the old structure to the new. Also, the new structure has given the Unions an opportunity to have the salaries of positions in this area of employment determined by the Public Service Arbitrator in their own right. The public hearing before the Public Service Arbitrator commenced on 4th February 1969, and is continuing.

page 26

QUESTION

TELEPHONE SERVICES

(Question No. 1291)

Senator ORMONDE:

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

  1. Is it a fact that ‘Red’ telephones are in short supply; if so, what is the degree of the shortage.
  2. How many ‘Red’ telephones have already been installed in Australia.
  3. Are there any instances where they are chosen in lieu of telephones usually supplied by the Postmaster-General’s Department.
Senator Dame ANNABELLE RANKIN:

– The Postmaster-General has provided the following answer to the honourable senator’s question:

  1. The ‘Red’ telephones are supplied by V.T.C. Pty Ltd, under the name of Victa Red Coin Telephones and the company advises that there is no shortage of instruments. However, there will be at any particular time a number of applications awaiting connection to the network due to delays in the various stages of processing.
  2. 10,321 at 31st March, 1969.
  3. Since the advent of company coin telephones in 1963 the Post Office meets requests for local call coin telephones only from Commonwealth and State Government Departments, charitable institutions supported by public subscriptions, hospitals, churches and schools. All other requirements are met by the private coin telephone companies.

page 27

QUESTION

SHIPPING

(Question No. 1293)

Senator GAIR:

asked the Minister repre senting the Minister for Trade and Industry, upon notice:

  1. Is it a fact that the Polish ship’Kochanowski’ left Europe on 20th January 1969, offloaded war supplies at Haiphong, and is now in Australia attempting to secure backloading to make its return trip economical.
  2. For how long will the Australian Government continue to turn a blind eye to this indirect assistance to the forces fighting our soldiers in Vietnam.
Senator ANDERSON:
LP

– The Minister for Trade and Industry has provided the following answer to the honourable senator’s question:

  1. and (2) The Polish M.S. ‘Kochanowski’ is reported to have sailed from Gdynia on 20th January 1969 for a number of ports in South East Asia.

On 9th May the vessel reported at Brisbane from Indonesia and, after calling at several Australian ports, sailed from Fremantle for Europe on 4th June.

Polish Ocean Lines, which own the vessel, schedule sailings to up to ten ports in South East Asia, including Haiphong. As the Government has pointed out in answer to earlier representations on this matter, it is impossible to obtain accurate details of what cargoes are unloaded in foreign ports, especially those of North Vietnam.

It is understood that the calls at Australian ports are not, as the question suggests, merely an attempt to secure backloading, but are for the prime purpose of lifting wool purchased by Poland.

page 27

QUESTION

SHIPPING

(Question No. 1294)

Senator WRIEDT:
TASMANIA

asked the Minister representing the Minister for Shipping and Transport, upon notice:

  1. Has the United States Government made any approaches to the Australian Government with a view to establishing a navigation station in an area which may include Tasmania; if so, is the proposed station designed to be used for marine and air navigation, including naval vessels.
  2. If such a station is established, will it, in conjunction with similar stations in other parts of the world, provide a comprehensive navigational system in Australian waters and thus make redundant other navigational systems such as Decca or Loran.
  3. Who will pay for the station and be responsible for its functioning.
  4. Should Australia become dependent on it as part of an ultimate navigation system, what guarantees are envisaged to ensure that it would not be discontinued or dismantled in the event of changes in United States-Australian relations.
Senator ANDERSON:
LP

– The Minister for External Affairs, to whom this question was referred, has provided the following answer to the honourable senator’s question:

  1. , (3) and (4) In my reply to Senator Murphy on 29th April I informed him that a United States technical team visited Canberra on 22nd April for further informal discussions on an Omega station. There have been no developments since that lime. The United States Government has not yet made any formal approach for the establishment of an Omega station in Australia. In the circumstances, the matters raised in question 3 and 4 have not been the subject of consideration by the Government.
  2. The Omega navigation system, as planned, will provide navigational aid on a global scale for all types of aircraft, marine vessels and vehicles. In general, the proposed Omega system is unlikely to supersede other navigational systems for all purposes in all waters. The special navigational requirements in certain areas cannot necessarily be met by a global system such as Omega.

page 27

QUESTION

ARBITRATION

(Question No. 1295)

Senator McMANUS:

asked the Minister representing the Prime Minister, upon notice:

  1. What is the reason fur the excessive delay in the determination of the claim by engineers in Commonwealth employment who are members of the Professional Officers’ Association for improved salaries and conditions.
  2. Is this another case in which organisations who do not adopt direct action fail in comparison with those who do.
  3. Is not such an excessive delay an invitation to direct action.
Senator ANDERSON:
LP

– The Prime Minister has advised that the Public Service Board has provided the following answers to the honourable senator’s questions:

  1. Engineers in Commonwealth employment are covered industrially by the Association of Professional Engineers of Australia, the Association of Architects, Engineers, Surveyors and Draughtsmen of Australia and the Professional Officers Association. The claimant staff associations have covered boththe private and the public sectors in their claim. When the engineers case opened before a joint Bench of the Conciliation and Arbitration Commission, it was agreed that the private industry and Commonwealth cases would be heard in joint session and that the staff associations would present an integrated case. The Commission decided that the case would beheard on the basis of 2 weeks on and one off. On 21st February 1969 the Commission adjourned the engineers case to a date to be fixed in order to bring on the Female Rates Case. The engineers case resumed on 10th June 1969 and is proceeding.
  2. No.
  3. No. The Associations are moving towards the completion of the presentation of their cases.

page 28

QUESTION

F111 AIRCRAFT

(Question No. 1296)

Senator O’BYRNE:

asked the Minister representing the Minister for Defence, upon notice:

Is it a fact, as has been reported in the press, that each further month of delay in Australia’s acceptance of the F111 aircraft will cost this country’s taxpayers an extra $9m; if so, will the Government try to salvage something from this disastrous deal by announcing now, before the general elections, that it has decided to abandon the purchase of the F111 aircraft.

Senator ANDERSON:
LP

– The Minister for Defence has provided the following answer to the honourable senator’s question:

The answer to the Senator’s primary question is - No. His attention is invited to Hansard of 4th June 1969, at pages 2073-4. The answer just given disposes of the Senator’s secondary question.

page 28

QUESTION

PUBLIC SERVICE

(Question No. 1302)

Senator CAVANAGH:

asked the Minis ter representing the Minister for Trade and Industry, upon notice:

  1. Was a Clerk, Class 6, employed by the Department of Trade and Industry, this day suspended from duty.
  2. Has any charge of a breach of any Commonwealth or State law been made against such employee.
  3. If this employee was suspended and no charge against him has been made, why was he suspended.
Senator ANDERSON:
LP

– The Minister for Trade and Industry has provided the following answer to the honourable senator’s question:

  1. (2) and (3) The Secretary, Department of Trade and Industry, has informed me that a Class 6 officer was suspended from duty on 30th May 1969. On 3rd June 1969 he was charged with an offence under Section 70 (1) of the Crimes Act 1914-1968.

page 28

QUESTION

TELEPHONE SERVICES

(Question No. 1309)

Senator McCLELLAND:

asked the

Minister representing the PostmasterGeneral, upon notice:

  1. In establishing a new rural telephone exchange on the South Coast of New South Wales, incorporating two former manual exchanges, why was the name Tilba Tilba chosen in disregard of the expressed wish of the majority of residents for Central Tilba.
  2. Was the name of Tilba Tilba chosen in deference to the request of two Tilba Tilba identities, namely the Member for Macarthur and Dame Zara Bate who received television time to urge her preference for that name.
  3. Did the Postmaster-General receive a petition signed by a number of residents expressing preferment for the name Central Tilba, the petition being entrusted to the Member for EdenMonaro; if so, when was the petition received.
  4. Willthe Minister be prepared to take fresh steps to ascertain the wishes of the subscribers and residents, especially in view of the complaint that the postal survey taken by the Department ignored some Central Tilba residents and reached others well after the date given for reply.
Senator Dame ANNABELLE RANKIN:

– The Postmaster-General has provided the following answer to the honourable senator’s question:

  1. The name was chosen according to guide lines issued by the Geographical Names Board of New South Wales. When objections were raised, a survey was carried out in the short time available before printing the interim telephone directory. Of the 45 responses received, 34 favoured ‘Tilba Tilba’, 8 favoured ‘Central Tilba’ and 3 suggested ‘Tilba’ or ‘Tilba District’ as an alternative.
  2. No.
  3. Yes, on 29th May 1969.
  4. Yes. A further survey will be made and, if it shows that the name ‘Central Tilba’ is generally preferred by the local community, the name will be changed to coincide with the issue of the new telephone directory in February, 1970.

page 28

QUESTION

OFF-SHORE OIL

(Question No. 1312)

Senator WEBSTER:

asked the Minister representing the Minister for National Development the following question, upon notice:

Regarding consultation between State and Commonwealth Governments for which provision is made in Part III - Administration of the Common Mining Code- of the Agreement relating to the Exploration for, and the Exploitation of, the Petroleum Resources of the Continental Shelf of Australia, has the Commonwealth informed all or any of the State Governments that it is not necessary to so consult.

Senator SCOTT:
LP

– The Minister for National Development has supplied the following answer to the honourable senator’s question:

page 28

No

page 29

QUESTION

MEAT EXPORTS

(Question No. 1313)

Senator RAE:

asked the Minister representing the Minister for Trade and Industry, upon notice:

  1. Has the Government taken any action to protest to the United States Administration over the lamb import quotas proposed by the United States Senate.
  2. If these import quotas are imposed, will this mean even greater competition between New Zealand and Australian fat lamb producers for the already limited markets.
Senator ANDERSON:
LP

– The Minister for Trade and industry has provided the following answer to the honourable senator’s question:

  1. The Australian Government has made strong formal representations to the United States Administration over the recent proposal adopted by the U.S. Senate Finance Committee recommending the imposition of quota restrictions on imports of Iamb into the United States. In these representations the Australian Government has emphasised that there is no sound economic justification for restrictions on lamb imports, particularly since U.S. Iamb production has declined steadily in recent years and prices are currently at very high levels. lt should be noted that Congressional pressure for restrictions on lamb imports has apparently abated in recent weeks. Indeed, I understand that it is now unlikely that further moves will take place in Congress in the near future. Nevertheless, the Australian Government is maintaining a close watch on the situation and will make further representation to the United States Government if such action is considered necessary.
  2. The United Stales imports relatively small quantities of lamb and in 1968 only 3% of total New Zealand and Australian lamb exports were shipped to that market. In these circumstances quantitative restrictions on lamb imports by the United States, whilst undesirable for other reasons, should not result in any increase in competition between Australia and New Zealand lamb producers in other world markets.

page 29

QUESTION

ARMY

(Question No. 1317)

Senator WRIEDT:

asked the Minister representing the Treasurer, upon notice:

  1. Have civilian instructors been allowed taxation exemptions on the money they earn whilst instructing at Army establishments al night or weekends.
  2. Has this practice now been discontinued; if so, why.
Senator ANDERSON:
LP

– The Treasurer has provided the following answer to the honourable senator’s question:

  1. There is not, and never has been, any provision in the income tax law which would exempt from tax the earnings of civilian instructors for services to Army establishments at nights or weekends.
  2. See answer to (1) above.

page 29

QUESTION

STUDENT DISSENT

Senator ANDERSON:
LP

– On 21st May, Senator Byrne asked me to convey to the Prime Minister a request that the Government give consideration to the preparation of a White Paper on student dissent in Australia. The Prime Minister has provided me with the following reply:

Although there is constant reference to student dissent, the term is illusory in that it is truly representative only of the widely differing and often conflicting opinions of the many thousands of students who interest themselves in public affairs. In these circumstances, I doubt the practicability of producing a White Paper which would adequately examine the many wide ranging and complex questions involved.

The Commonwealth Government will defend the right of dissent. We do not recognise, however, that a dissenting minority possesses the right to resort to violence or interference with the rights of other citizens. Some of the events that have occurred are matters first of all for administrators of schools and universities and the State authorities. Nevertheless, the Commonwealth will continue to watch developments closely.

page 29

QUESTION

STEEL

Senator ANDERSON:
LP

– On 28th May Senator Gair asked me a question without notice concerning an investigation by the United States Bureau of Customs into the alleged dumping of steel products in the United States by Broken Hill Pty Co. Ltd. The Minister for Trade and Industry has provided me with the following reply: lt is mie that an investigation is taking place into the Broken Hill Pty Co. Ltd marketing policy for steel products in the United States.

In May last year an American steel company, Oregon Steel Mills Incorporated of Portland, Oregon, filed a complaint with the Bureau of Customs of the United Slates Treasury Department submitting that the Australian company was selling steel bars, reinforcing bars and steel shapes at less than fair value as determined by United States anti-dumping legislation. 1 understand that the United Slates Bureau of Customs has undertaken an inquiry into the matter and that hearings will be held before the United

States Tariff commission at a future date. The Tariff Commission will then determine whether B.H.P.’s activities have caused injury to United States industry and do, therefore, constitute dumping.

page 30

QUESTION

QUESTIONS

Senator GEORGES:
Queensland

– I ask for leave to make a statement.

The DEPUTY PRESIDENT- There being no objection, leave is granted.

Senator GEORGES:

– The Leader of the Government in the Senate accused me of having shocking manners when I indicated, as he began a rather lengthy answer to a simple question, that I sought merely a yes or a no. That is what I endeavoured to indicate to him at the time. Unfortunately, the phrase that the Minister used is rather offensive to me, I do not doubt that he made it in the heat of the moment, but I feel that I should make an explanation. Perhaps he will accept the fact that I did not require a repetition of information that he had given to me previously. I asked a simple question which he could have answered by a yes or a no and he would thus have saved the Senate a considerable amount of time.

Senator ANDERSON:
Minister for Supply · New South Wales · LP

– I would not like to hurt the honourable senator’s feelings. He made an interjection when I was speaking. It was a quite inappropriate interjection made in the middle of an answer to a question. I would be quite prepared to bring it back to that position. I would go on to say that there is no such thing as a simple question or a simple answer in the Senate, least of all in an election year.

Senator WEBSTER:
Victoria

– by leave - I ask the appropriate Minister whether answers to question 901 asked on 27th February and question 1006 asked on 19th March will be supplied as soon as possible as the delay in answering those questions is interfering with the affairs of the Senate.

Senator ANDERSON:

– I will take up the matter and see what is causing the delay. I am sure that no Minister likes to delay an answer any more than is necessary, even though some questions require in reply more than a simple yes or no.

page 30

TABLING OF TREATIES

Senator ANDERSON:
Minister for Supply · New South Wales · LP

– For the information of honourable senators I lay on the table texts of the undermentioned treaties to which Australia has become a party by signature:

  1. Agreement signed at London on 27th January 1969 terminating the Commonwealth Telegraphs Agreement, signed at London on 11th May 1948 and 25th July 1963.
  2. Commonwealth Telecommunications Organisation Financial Agreement, signed at London on 27th January 1969.
  3. Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of Indonesia for air services between and beyond their respective territory, signed at Sydney on 7th March 1969.
  4. Agreement between the World Health Organisation and the Government of Australia for the provision of technical advisory assistance to the Territory of Papua and the Trust Territory of New Guinea, signed at Manila on 17th March 1969.
  5. Agreement between the Government of the

Commonwealth of Australia and the Government of Canada concerning uninsured and insured parcels, signed at Ottawa on 22nd April 1969.

  1. Exchange of Notes between the Government of the Commonwealth of Australia and the Government of Iceland constituting an agreement concerning visas and visa fees, concluded at London on 29th April 1969.
  2. Exchange of Notes between the Government of the Commonwealth of Australia and the Government of the United States of America constituting an agreement amending the agreements of 9th May 1961, 11th September and 30th October 1962 and 1st September 1966, concerning a programme to study the radioactivity of the upper atmosphere by means of high altitude balloons, concluded at Canberra on 9th May 1969.
  3. Exchange of Notes between the Government of the Commonwealth of Australia and the Government of the Socialist Federal Republic of Yugoslavia constituting an agreement on the abolition of visa fees, concluded at Belgrade on 13th June 1969.
  4. Exchange of Notes between the Government of the Commonwealth of Australia and the Government of the United Stales of America constituting an agreement amending the agreement of 13th January 1969 relating to the establishment by the Government of the United States of America of facilities on the Territory of Norfolk Island for the purposes of studying ionospheric propagation in relation to long range radio paths, concluded at Canberra on 10th July 1969.
  5. Exchange of Notes between the Government of the Commonwealth of Australia and the Government of the Federative Republic of Brazil constituting an agreement for the issue of gratis visas for visitors, concluded at Canberra on 16tt July 1969.
  6. Customs convention on the temporary importation of scientific equipment, signed at Brussels on 11th June 1968.

I also lay on the table the following texts of treaties to which Australia has become a party by accession or adherence:

  1. The Brussels Act of 1948 revising the Berne convention on the protection of literary and artistic works, signed at Brussels on 26th June 1948.
  2. The Asian - Oceanic postal convention, signed at Manila on 16tb December 1965.

page 31

CITY SOUTH TELEPHONE EXCHANGE, SYDNEY, NEW SOUTH WALES

Report of Public Works Committee

Senator BRANSON:
Western Australia

– I present the report of the Parliamentary Standing Committee on Public Works relating to the following proposed work:

City South Telephone Exchange, Sydney, New South Wales

I ask for leave to make a short statement.

The DEPUTY PRESIDENT- There being no objection, leave is granted.

Senator BRANSON:

– The summary of recommendations and conclusions of the Committee is as follows:

  1. No later than 1973 an extension of local subscribers services will be necessary to meet the future demands of the City South Exchange area.
  2. There is a need for the work in this reference.
  3. The site selected is suitable.
  4. PVC covered galvanised sheet roofing should be used in lieu of copper.
  5. Subject to the other recommendations in this report, the Committee recommend the construction of the work In this reference.
  6. The estimated cost of the work when referred to the Committee was $1,850,000.
  7. It is to be regretted that a large part of Sydney’s city area is poorly serviced with subscriber trunks dialling.
  8. The date for the completion of the new building may be difficult to meet.
  9. Every endeavour should be made to accelerate completion of the new telephone exchange building.

This report was presented in the other place today by a colleague and a person whom 1 respect very rauch, Mr William Paul O’Connor, the honourable member for Dalley. I wish to place on record the fact that he has served on the Public Works Committee for 19 years, which is a record. For the last seven of those years he has been the Vice-Chairman of the Committee. Despite his physical disability, Mr O’Connor has been on practically every inspection that the Committee has undertaken, often at great discomfort and pain to himself. Since Mr O’Connor joined the Committee, 730 meetings have taken place and 135 references have been dealt with. He was one of the most regular attenders at the meetings. Mr O’Connor tendered his resignation today. He was an inspiration to everybody who served on the Committee and particularly to those who were new to it. Because of his complete impartiality, nobody who listened to what he had to say during the meetings of the Committee could tell from his remarks to what party he belonged. He refused to allow anybody to bring party politics into the meetings of the Committee, which is a joint standing committee representing both sides of the Parliament. Although I may have infringed the Standing Orders, I could not allow this occasion to pass without paying tribute to a very great man who today tendered his resignation from the Public Works Committee, which he has served well for 1 9 years.

page 31

ASSENT TO BILLS

Assent to the following Bills reported:

Income Tax Assessment Bill 1969. Pay-roll Tax Assessment Bill 1969. Audit Bill 1969.

Broadcasting and Television Bill 1969. Citizenship Bill 1969.

Independent Schools (Loans Guarantee) Bill 1969.

Income Tax (International Agreements) Bill 1969.

Decimal Currency Board (Abolition) Bill 1969. Superannuation Bill (No. 2) 1969. Appropriation Bill (No. 3) 1968-69. Appropriation Bill (No. 4) 1968-69. Supply Bill (No. 1) 1969-70. Supply Bill (No. 2) 1969-70. Broadcasting and Television Bill (No. 2) 1969. Customs Tariff Bill (No. 2) 1969. Excise Tariff Bill (No. 2) 1969. States Grants (Paramedical Services) Bill 1969. States Grants (Nursing Homes) Bill 1969. South Australia Grant (Tailem Bend to Keith Pipeline) Bill 1969.

New South Wales Grant (Gwydir River Dam) Bill 1969.

Victoria Grant (King River Dam) Bill 1969.

Australian Coastal Shipping Commission Bill 1969.

States Grants (Special Financial Assistance) Bill 1969.

Australian Capital Territory Taxation (Administration) Bill 1969.

Australian Capital Territory Tax (Cheques) Bill 1969.

Australian Capital Territory Tax (Hirepurchase Business) Bill 1969.

Australian Capital Territory Tax (Insurance Business) Bill 1969.

Australian Capital Territory Tax (Purchases of Marketable Securities) Bill 1969.

Australian Capital Territory Tax (Sales of Marketable Securities) Bill 1969.

Australian Capital Territory Stamp Duty Bill 1969.

States Grants (Home Care) Bill 1969.

Patents Bill 1969.

Chicken Meat Research Bill 1969.

Meat Chicken Levy Bill 1969.

Meat Chicken Levy Collection Bill 1969.

Petroleum Search Subsidy Bill 1969.

Judiciary Bill 1969.

Judges’ Remuneration Bill 1969.

Commonwealth Aid Roads Bill 1969.

page 32

PAPUA AND NEW GUINEA

The DEPUTY PRESIDENT- The President has received a letter from the Speaker of the House of Assembly of the Territory of Papua and New Guinea forwarding a resolution passed by the Assembly on 14th March 1969 relating to self-government in Papua and New Guinea. Copies of the letter incorporating the resolution have been circulated to honourable senators. It reads:

page 32

TERRITORY OF PAPUA AND NEW GUINEA

House of Assembly,

Port Moresby, 28th March, 1969

Dear Sir,

I present the following Resolution moved by Mr Ebia Olewale, M.H.A., and agreed to by the House of Assembly for the Territory of Papua and New Guinea on 14th March, 1969: - “ (1) This House has noted the Resolution passed by the General Assembly of the United Nations on 18th December, 1968 that the Assembly: - “ 1. Reaffirms the inalienable right of the people of Papua and New Guinea to self-determination and independence in accordance with General Assembly resolution 1514 (XV)., “2. Regrets the fact that the Administering power bus not yet fully implemented the provisions of resolution 1514 (XV) and other relevant resolutions relating to Papua and the Trust Territory of New Guinea. “ 3. Calls upon the administering power to implement fully resolution 15 (XV) and, to this end, to take the following measures in particular -

  1. Fix an early date for selfdetermination and independence in accordance with the freely expressed wishes of the people of the Territories.
  2. Hold free elections under United Nations supervision on the basis of universal adult suffrage in order to transfer effective power to the representatives of the people of the Territories., “4. Requests the administering power to report to the trusteeship council and the special committee on the situation with regard to the granting of independence to colonial countries and peoples on the action taken in this regard. . “5. Requests the trusteeship council and the special committee to continue to examine this question and to report thereon to the General Assembly at its twenty-fourth session “,

And also the more realistic Resolution sponsored by Liberia that the Assembly: - “ 1. Reaffirms the inalienable right of the people of Papua and the Trust Territory of New Guinea to selfdetermination and independence in accordance with General Assembly resolution 1514 (XV) and the trusteeship agreement of 13th December, 1946., “2. Takes note of the report of the trusteeship council and recommendations contained in the report of the United Nations visiting mission to the Trust Territory of New Guinea (1968). “ 3. Calls upon the administering power to take steps to transfer effective powers in the executive and legislative branches of Government to the elected representatives of the people., “4. Requests the administering power to accelerate the indigenization of the Public Service and to give local personnel greater administrative responsibility in the Governmental structure. . “5. Decides that the United Nations should should render all help to the people of Papua and the Trust Territory of New Guinea in their efforts freely to decide their own future.”.

  1. This House wishes to make it clear to the United Nations and interested parties that the elected members of this House are already elected in free elections on the basis of universal suffrage and that the Resolution passed by the General Assembly is thus already out-of-date and repeats and reaffirms the terms of the Resolution passed by this House on 2nd September, 1964, that- “That we the elected representatives of the people of Papua and New Guinea desire to convey to the Parliament of the Commonwealth of Australia, the Trusteeship Council and the General Assembly of the United Nations Organization, the expressed wish of the people that they, the people, and they alone, be allowed to decide when the time is ripe for self-government in Papua and New Guinea, and the form that such government will take and the people’s further firm conviction that the road to self-government can best be travelled with one guide - and that guide the Administering Authority, and that undue pressure from without can lead only to that disruption, chaos and bloodshed which the people have observed with great alarm in certain newly independent countries.”.
  2. This House desires that the views explained in this Resolution be like the Resolution of 2nd September, 1964, conveyed to the Parliament of the Commonwealth of Australia, the Trusteeship Council and the General Assembly of the United Nations.”

Yours sincerely,

JOHN GUISE,

Speaker

page 33

NAVAL DISASTER

The DEPUTY PRESIDENT - The President has received a letter from Mr Edwin M. Cronk, Charge D’affaires of the United States of America, expressing appreciation of the expressions of sympathy made in the Senate on the occasion of the tragic collision between HMAS ‘Melbourne’ and USS ‘Frank E. Evans’. Mr Cronk advised the President that he had taken immediate action to communicate the Senate’s expression of sympathy to all those concerned.

page 33

JOINT SELECT COMMITTEE ON THE NEW AND PERMANENT PARLIAMENT HOUSE

The DEPUTY PRESIDENT- The President has received a letter from Senator Devitt tendering his resignation from the Joint Select Committee on the New and Permanent Parliament House.

page 33

PAPUA AND NEW GUINEA - BOUGAINVILLE COPPER DEVELOPMENT

Ministerial Statement

Senator WRIGHT:
Minister for Works · Tasmania · LP

– by leave - this statement is concerned with the recent incidents near Kieta, Bougainville, in the Territory of Papua and New Guinea, in connection with the provision of land for the Bougainville copper project. On 31st July a lease was issued to Bougainville Copper Pty Ltd under the Territory Mining Ordinance over 175 acres of land at Rorovana. On 1st August surveyors commenced marking the boundary of this land. In view of reports that there might be violence, 100 police were sent to the area in three groups. A group of approximately 20 women crowded around police guarding a concrete survey peg. The police did not use force and eventually the peg was removed and carried away by the women. Clearing and marking of the area continued on 2nd and 4th August without interference. On 5th August a bulldozer clearing scrub for the survey team was confronted by a group of approximately 65 men and women. There were approximately 70 police present. The officer in charge warned the people to disperse on at least two occasions. He then ordered a group of 15 police carrying shields and batons to move in front of the bulldozer and attempt to push the crowd away with their shields. There was a general melee and at this point the officer in charge decided to attempt to disperse the crowd with tear gas. The tear gas used is nontoxic. It was only partially effective. After further warnings police were ordered to use their batons about the legs of the natives and after a very short time the crowd dispersed. There were no injuries other than one man who appeared to have grazed his leg falling over a log. No-one was injured by the police. Minimum force was used.

The members of the Papua and New Guinea constabulary acquitted themselves with distinction in these incidents behaving with the greatest restraint and discipline. Their actions were at all times fully in accordance with the fine traditions of this force. These are the facts of the incidents. I turn now to the situation behind them.

For many years there has been some knowledge of’ the mineral wealth at Bougainville Island but it was not until 1960 that an Administration geologist reported the possibility of a major low-grade copper deposit. Conzinc Riotinto of Australia Ltd began prospecting the area in 1964. In 1967 after more than 12 months of negotiation an agreement was signed between the company and the Administration. This agreement was tabled in the Commonwealth Parliament. It was debated in the Territory House of Assembly and a ratifying ordinance was passed by the House. The House consisted of 54 elected and 10 official members. The House also amended the Territory mining legislation so as to provide that 5% of all royalties for minerals should be paid to the owners of the land from which the minerals were taken. This was accepted by the Government.

In June of this year the Territory House of Assembly, now consisting of 84 elected and 10 official members, debated a comprehensive White Paper on the Bougainville project and again endorsed it. The motion passed by the House on this occasion described the project as ‘a major and essential development in the economic future of the Territory’.

In relation to the situation at Rorovana as well as at Arawa, the Administrator consulted the Administrator’s Executive Council, which has a majority of elected members of the House of Assembly. The Council gave unanimous support to the Administrator’s proposals for further direct consultation with the people, to be followed if unsuccessful by leasing under the Mining Ordinance or by compulsory acquisition under the Lands Ordinance, and endorsed the employment of police if necessary to ensure protection of those going about their lawful business in the area. The Council also expressed an earnest wish that the Rorovana and Arawa villagers would sell their land to the Administration.

The Bougainville copper project offers gigantic benefits to the Territory as a whole. These benefits will include jobs for 2,500 New Guineans within the next five years, a township of 10,000 people, a $2m training programme for indigenous people during the period to 1973, revenue to the Administration of between S200m and $300m in the first 10 years of operation and export income in excess of $100m per annum.

In addition, the Administration, on behalf of the people of the Territory, has the option of a 20% equity interest in the project. C.R.A. has indicated that it may also provide opportunities for individual equity participation by the people of Bougainville. The project therefore offers a tremendous opportunity for the Territory to lift itself up out of the field of competition of low priced tropical products in international trade, and to make a giant stride towards economic self reliance.

In view of its importance to the Territory and in view of the nature of the problems involved, the Government and the Administration approached this whole question wilh great and careful consideration of the problems extending over many months. Advice regarding particular aspects of the attitude of the local people from expert anthropologists and psychologists has been carefully examined and the whole matter has been the subject of the most careful study.

Certain difficulties were experienced in 1966 and 1967 in the actual area of mining operations at Panguna, where the open pit mine, the concentrate plant, the mine town and a location for stacking waste rock will be sited. The 10,000 acres of this land is covered by a special mining lease.

The people of Guava, Moroni and Dapera who occupy or own land in this lease were originally antagonistic to the project as are the coastal people of Rorovana and Arawa now. The problems were handled patiently and sympathetically. These inland people are now reconciled to the mining operation. They are receiving full compensation for loss of housing and gardens and there will also be annual cash payments for the loss of use of land and for royalties, hi summary there are about 1,000 men, women and children involved and when the mine is fully in operation cash payments arc expected to total approximately SI 00,000 per year. Not all the compensation for loss of houses and gardens etc. has yet been determined by the mining warden but some fifty people in the village of Moroni have been awarded cash and kind compensation valued at approximately S40.000.

Other leases required for roads, disposal of tailings, sources of aggregate and limestone etc. may total up to 40,000 acres. Much of this area will be swamp. It is not expected that village dwellings will be involved.

The incidents on 1st and 5th August that I have referred to above relate only to requirements for the port. The company had however proposed that the town be sited on the coast in an area of some 2,000 acres south of the site proposed for the port. This location would have deprived some 650 villagers of their houses, gardens and economic crops. To avoid this the Administration decided to locate the town at Arawa plantation of 998 acres and to supplement this area with some 640 acres of adjacent sparsely planted village land which contained no village houses.

The arrangements for land for the port and for the town that were decided upon were chosen so as to cause the least disturbance to the minimum number of native people. The land is uninhabited. No homes are lost. No villages are displaced. The people have other land. Full compensation will be paid. If need be, however, the Administration will also make other land available.

In providing land for the port or for the town associated with the copper project the Administration is acting first and foremost in the interests of the Territory. The Territory gets more out of the copper project than the company does. The project will not be on full stream until about 1980. When that happens however the following points will apply: (a) Fifty per cent of the taxable income goes to the Territory Treasury, (b) Royalties are payable to the Territory Treasury in accordance with the Mining Ordinance scale, (c) If the Administration’s option on 20% of the equity is taken up then one-fifth of the dividends paid or profits accumulated but not distributed will accrue to the Territory,

Quite apart from these financial considerations and the indirect tax benefits flowing from the huge payroll that will be financed by the project there are the jobs, training, and development benefits I have already referred to. The people of Bougainville have known for years that the project would require substantial areas of land but until the detailed investigations were completed it was not possible to specify the particular areas.

In March this year the company applied for its special mining lease. This brought into operation major aspects of the agreement, including the obligation by the Administration to provide land. For over 3 years the Administration has used all possible means to explain to the people of Bougainville the nature and implications of the mining project. The construction of Radio Kieta was expedited in 1967 to facilitate communications with the native people.

Since mid-1966 over forty Administration patrols have been made in the area affected by the mining project. A primary objective of the patrols has been to explain to the people the nature of the project and how it would affect them. In addition individual officers have spent in the aggregate hundreds of days visiting villages and individual families for this same purpose. The Administrator himself visited Bougainville earlier this year and spoke to the people and talked over Radio Bougainville. Last month an Assistant Administrator led a special mission to the Island and held meetings in the villages most affected. This mission included indigenous Ministerial Members of the House of Assembly and all three Bougainville members of the House. Radio and news sheets have been used extensively and the elected members for Bougainville have been given every opportunity and encouragement to inform themselves and their people of the project and the consideration it had been given by the House of Assembly.

As an example of the detailed and painstaking effort on the part of the Administration to achieve communication with the local people I refer to the fact that the Assistant District Commissioner of the area visited Rorovana 4 times in the past 4 months and the people of Rorovana themselves visited the District Headquarters at Kieta 12 times in the past 5 months for discussions. There have also been frequent discussions with the councillors of the Rorovana Council and the Council President.

It appears that the opposition of the Rorovana people to the sale of their land to the Administration is not related to lack of information or, indeed, to the amount of compensation offered to them. Some 175 acres of Rorovana land is required for the port area. The Rorovana people number some 4S0 and they have total land of approximately 1,600 acres. The loss of this 175 acres will not seriously affect their economic livelihood. They have been offered a good price and alternative productive land. There has never been any real indication they they would sell at any price. On the other hand, not all the native people are opposed. At the village of Lonsiro only a few miles from Rorovana, one native land-holding family concluded arrangements for the Administration under which they were paid $5,600 for a 42-year lease of 49 acres of land.

The Administration’s position in relation to negotiations for land for such public purposes as ports, town sites, airfields and so on has to take account of the need for these public facilities throughout the Territory. The proposed port for which the Rorovana land is required will be for public and not just for company use. The legal authority for compulsory acquisition or lease of land exists in the Territory as in other countries to avoid the need for excessive payments out of the public purse, that is, to serve the interests of the public as a whole. Compulsory acquisition is an essential power in all communities, lt is used in Australia more freely than in the Territory. Individuals or small groups are not allowed to hold the whole community up. In the Territory as here the amount of compensation is in the last resort subject to law.

The Agreement between the Administration and CRA which the Commonwealth Government is backing is modern in its approach and enlightened in its ideas. There will be adequate return to the Territory Government in terms of taxes, royalties and dividends from the profits of the operation. There are those who would accept the merits of the Bougainville Copper Agreement but who would criticise the way in which the Government or the Administration have handled the matter. This is easily done. Nevertheless it ignores the tremendous difficulties of communication and of comprehension which have confronted the Administration in this matter. I have explained the painstaking nature of the Administration communication activity. There has been no effort spared. The basic difficulty has been that people of this area are living in one world and the problems of development and the requirements of development confront them with another world.

In the absence of skill and patience and moderation on the part of the Administration, especially its field officers, we could easily have had a much worse situation than that which confronts us. As it is we cannot expect easy solutions. We must understand that what happened at Rorovana and what may happen elsewhere reflect the problems of transition into a modern world and a modern society. These cannot be sidestepped by an Administration that must act in the interests of the Territory as a whole. The Government, however, is grateful to the officers of the Administration for the extent to which their efforts have so far contained the problem.

The Government makes no apology for the Agreement. It considers that the Agreement is a spectacular contribution to harnessing the interests of private capital and the skills of the large corporation to the development requirements of the Territory. Not many developing countries are fortunate enough to have the prospect of so large and so remunerative a development within their boundaries. In this, confidence plays a major part. The investment of S300m demands confidence. In this case the investors are showing their confidence not only in the Commonwealth Government but in the people of the Territory themselves because the mining project looks ahead to the time when the people will be running their own affairs. In this respect the projected investment is an act of imagination and confidence. There are many who seek to knock it but it has the backing of the Territory people through their House of Assembly. It will survive.

The Government considers the Administration’s actions are fully in accordance with the law. Action has been taken in Papua and New Guinea to test the law. The Government will welcome an authoritative and definite judicial interpretation of the legal position. Since 1964, the Government has made available to the Territory by way of grant in aid sums totalling $400m. The Government and the House of Assembly have last year jointly backed a 5-year Sl,000m development programme for the Territory. The Bougainville project offers a unique opportunity for the Territory to make a dramatic advance towards these objectives of development.

The attitude of a handful of people may attract our sympathy, and we may go to considerable lengths to resolve their problems. But in the last resort we cannot allow them to block this great prospect and thus throw into doubt the policies on which the future of more than 2 million people depend. In the structure of ignorance, superstition and prejudice, persuasion and explanations are not easy, but with other expatriate influences working in the opposite direction - some not without prestige in native eyes - difficulties become great.

The present choice before the people of this Territory is whether to drift into a primitive and backward situation in close dependency on the generosity of the Australian taxpayer to provide a modicum towards health, education and the preservation of law and order and burdened by their ancient custom or whether to advance as a modern state financed substantially by its own resources. These resources lie dormant and will continue that way under traditional attitudes. Developed they will provide the revenues for the hospitals, the schools, the better standard of life and, most important, a nation not only able to stand on its own feet economically but able to opt for a meaningful independence should this be desired. This progressive transition has been the way chosen by the people of the Territory. Its achievement needs sympathy and understanding from us in Australia as well as our continuing support.

Senator MURPHY:
New South WalesLeader of the Opposition

– I move:

That the Senatetake note of the statement.

I ask for leave to make my remarks at a later stage.

Leave granted; debate adjourned.

page 37

QUESTION

PLACING OF BUSINESS

Senator ANDERSON:
Minister for Supply · New South Wales · LP

– I move:

That General Business be postponed this day until after the tabling of the Budget Papers 1969-70 and the moving of the motion in relation thereto.

It is expected that at a few minutes after 8 o’clock this evening I will deliver the Budget Speech in this place on behalf of the Treasurer (Mr McMahon) and, if we follow tradition, the Leader of the Opposition (Senator Murphy) then will move that the debate be adjourned. I had in mind that we then would lift the Senate until 3 o’clock tomorrow afternoon in the normal way.

Question resolved in the affirmative.

Sitting suspended from 5.27 to 8 p.m.

page 37

BUDGET 1969-70

Senator ANDERSON:
Minister for Supply · New South Wales · LP

– I present the following papers:

Civil Works Programme 1969-70

Commonwealth Payments to or for the States, 1969-70.

Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30th June 1970.

Expenditure -

Particulars of Proposed Expenditure for the Service of the year ending 30th June 1970.

Particulars of Proposed Provision for Certain Expenditure in respect of the year ending 30th June 1970.

Government Securities on Issue at 30th June 1969.

Commonwealth Income Tax Statistics for Income Year 1966-67

National Income and Expenditure, 1968-69. and move:

That the Senate take note of the papers.

Tonight the Treasurer is delivering in another place his Budget Speech for 1969-70. It is my privilege to outline to the Senate the Budget proposals of the Government.

Again, social welfare has an honoured place in these proposals. They take us much further along the road the Government is determined to follow in accordance with the policy it initiated last year. It will remain our continuing policy to help the aged, the sick and those in need, and to do so in a way that will encourage self-help, thrift and provision for the future.

Repatriation benefits will be increased. Greatly increased financial aid for education will add to the scope and quality of the training and cultural development available to our young people as well as to older students. Additional funds will be provided to support the programmes to assist our Aboriginal citizens.

We shall again provide adequately for defence, for financial assistance for the

States, for additional assistance to industry, for some measures of taxation relief and for many other purposes.

page 38

ECONOMIC CONTEXT

The various proposals are brought forward in conditions of high prosperity.

Output and Employment

For both output and employment, 1968-69 was an exceptionally good year. Gross national product increased by 12% at current prices. Measured at constant prices the growth rate in real terms was more than 8.5%: approximately 2% being the result of the big increase in rural output following the drought of 1967-68. With allowance for this, a real growth rate of about 6.5% for the rest of the economy was a notable performance.

Net immigration was at the highest level since the 1950’s and added about 60,000 migrant workers to the workforce. Employment rose by about 150,000. Outside the rural sector, productivity seems to have risen by about 3.5%.

Demand

Last year’s increase in output was matched by rising demand, except in the over-supplied world wheat market. In the earlier months of 1968-69, consumer spending increased rather slowly. It gained strength as the year went on and, for the year as a whole, increased by 6.7%.

Private capital expenditure accelerated in 1968-69 to reach boom levels. Expenditure on dwellings increased by 16% over the previous year. Expenditure on other buildings and construction rose by 15%. After rising by only 3% in 1967-68, expenditure on plant and equipment last year increased by 10%. Private investment can therefore be clearly identified as the driving force behind the expansion of the economy that became apparent in the latter half of 1968-69.

Total spending by Governments and their instrumentalities also increased - by 9%. This was slower than the rate of increase in gross national product at current prices - 12% - and slower also than the 12% increase in public spending in 1967-68. Outlay in Australia from the Commonwealth Budget was 7.6% greater than in 1967-68 when it rose by 8.5%.

The effects of the strong rise in demand began to show up in the labour market half-way through last financial year. At the end of December 1968 the seasonally adjusted figure for persons registered for employment exceded that for untitled vacancies by 30,573. By the end of June the gap was reduced to 10,897. This tightening occurred despite the big migrant inflow and the continuing addition of large numbers of married women to the employed workforce. There is no sign yet that pressure in the labour market is being reduced. On the contrary, the information available to us indicates a continued tightening.

Costs and Prices

An unwelcome feature of the rising pressure on resources has been the overrapid increase in costs. In the March quarter of 1969 average weekly earnings were 8.6% above the level of the year before and for 1968-69 as a whole the increase was about 7.25%. As a consequence of these higher costs, the consumer price index increased by 2.9% during 1968-69. The non-food groups in the index increased by about 3.75% - a much faster rate than in 1967-68.

Liquidity

Last year more than $200m was added to our holdings of gold and foreign exchange. On official account, external payments exceeded external receipts by more than $400m. On private account, the opposite occurred. An excess of external receipts over external payments of more than $600m added considerably to monetary liquidity in Australia. The big increase in Rural Credits advances by the Reserve Bank, mainly to finance the record wheat harvest, also added to the money supply. On the other side of the ledger, the domestic surplus of receipts over outlay in the Commonwealth Budget reduced monetary liquidity. Despite this, the money supply in the form of trading and savings bank deposits and notes and coin in the hands of the public increased by 9.1%. The increase in the previous vear was 8.3%.

There can be no doubt that the free availability of money has been contributing greatly to the growing strength of demand.

page 39

THE YEAR AHEAD

At this stage indications are that 1969-70 will be another year of strong economic growth. Except in parts of Queensland and Western Australia, seasonal conditions are promising and rural output should again increase. We could not, however, expect to repeat last year’s gain in rural production which followed the recovery from the drought of 1967-68. The output from other sectors of the economy also should rise well even though, with unemployment at a low level and mainly of the short-term kind, the labour market is now much tighter than it was a year back. With not much change in the present low level of unemployment, it seems unlikely that this year’s increase in the numbers employed will be as great as last year’s. Nevertheless, given productivity increases comparable with those of last year, non-farm output should expand at a rate not far short of that achieved in 1968-69. An increase of at least 6% in gross national product at constant price seems a reasonable forecast to make.

With the expectation that there will be another good year for output we have to ask how the trends in demand are likely to develop. The rate at which incomes are rising leaves no doubt that consumption expenditure will continue to gain strength.

Spending by Governments and their instrumentalities for both current and capital purposes increased last year by 9%. This year it seems likely to rise at much the same rate.

Another year of large-scale private capital outlay seems certain. How strongly this expenditure will be supported by capital in How is one of the uncertainties we have to allow for. Present conditions in capital markets abroad suggest that it would be prudent to allow for a reduction in capital inflow this year. If that occurred, it could have a direct effect on capital expenditure and would tend to modify the influences adding to monetary liquidity.

At present, however, capital expenditure is imposing a considerable strain on the economy. At least in some States, the demands now being made on the building industry in particular must be pressing closely against the limit of resources. Shortage of building materials have shown up, costs have been rising at an increasing rate and construction times have lengthened. Any aggravation of these conditions must be harmful both for homebuilders and the industry.

Balance of Payments

It has to be recognised that any tendency for demand to outrun supply in the home market will have adverse effects on the balance of payments. In looking ahead, then, we must take account of the implications of excessive pressure developing in some sectors of the economy.

The prospects for exports seem reasonably good except in the overseas wheat market. Rural exports should increase in volume and, provided prices hold, should once more add to our export earnings. Another big rise in exports of minerals is certain and it is reasonable to expect exports of manufactures to improve.

A rise in domestic demand is bound to attract additional imports. There could well be a trade surplus but the deficit on invisible payments will increase. Whether the net inflow of capital will balance the deficit on current account is difficult to assess. Excluding defence credits, official capital transactions abroad involve debt repayments amounting to some $200m and conditions in the international capital markets are not at the moment particularly favourable to loan raisings. Summing up, we can reasonably hope that there will be an approximate balance in our external transactions. We cannot, however, rule out the possibility that we may have to draw to some extent on our external reserves. These reserves are, fortunately, strong enough to enable us to cope with a temporary oversea payments deficit.

page 39

THE BUDGET AND THE ECONOMY

In determining the structure and consistency of this year’s Budget, we have endeavoured to make it fit the prospective economic conditions, including likely movements in monetary liquidity. In last year’s Budget, the deficit - or the amount borrowed to make up the difference between expenditure and all revenue receipts - was reduced, as compared with that of the year before, by $257m to a net amount of $3 85m. This year we are budgeting for a deficit of only $30m or $356m below last year’s deficit.

We estimate that total receipts will rise by $825m or 13.5% to $6,954m because of buoyant conditions and strong demand. Expenditure is estimated to rise by $469m or 7.2% to $6,983m.

The direct demand the Budget expenditure will make on resources is measured by the estimate of net expenditure on goods and services. This excludes transfer payments, such as pensions or interest, and net advances, such as those made to the States. In this Budget, this expenditure is estimated to increase by only 1.2%, compared with an increase of 7.8% in 1968-69. The much slower rate of increase is accounted for largely by a substantial reduction in defence spending abroad. lt has to be emphasised that it is expenditure in Australia that adds directly to demand on local resources. Net Budget expenditure in Australia on goods and services is estimated to increase by 7.3% - a significant reduction on last year’s 10% increase.

We expect total outlay in Australia, including welfare and other transfer payments and advances, to increase by 9.6% compared with last year’s rise of 7.6%. In the main, this is accounted for by increased welfare payments and the additional funds going to the States.

We estimate that total receipts in Australia will exceed outlays in Australia by about S500m in 1969-70. This domestic surplus would bc about $3 00m greater than that achieved in 1968-69. Since it represents a net withdrawal of a comparable amount from the private sector’s monetary holdings in Australia, the domestic surplus should have a considerable effect in modifying the expansion of domestic monetary liquidity. This effect would be strengthened to the extent that net sales of Commonwealth securities were made to the non-bank public in Australia. Less buoyant liquidity conditions will, of course, help to contain increases in spending from local borrowings or other capital raisings in the Australian market.

page 40

EXPENDITURE ESTIMATES, 1969-70

I now turn to the expenditure estimates and the main policy decisions affecting them.

Defence

The Defence vote will fall this year to an estimated $l,104m or about 5% less than last year’s expenditure.

Defence expenditure overseas is expected to be about $243m or $87m less than last year.

The financial requirement is somewhat smaller mainly because parts of the major equipment programme have been completed and for some projects some of the expenditure is being spread into later years.

It does not amount to a reduction in our defence effort.

As has been announced, the defence programmes of the future will not be limited to set 3-year periods but will always look 5 years ahead aud be kept under constant review. In accordance with this concept, studies have been undertaken in the Defence Department and equipment and works proposals have been brought forward and approved for inclusion in this Budget. Studies are continuing on other projects and as these are approved they will be admitted to the programme. The projects so far approved include ship construction and various items of capital works and equipment. The ship construction programme will include a fast combat support ship, a hydrographic ship and an oceanographic ship for the Navy and heavy landing craft for the Army. It is also proposed lo put in hand a preliminary design study for new light destroyers for the Navy as replacements for some of the R.A.N.’s existing destroyers. There will be technical items of equipment ordered for all Services. The Army will be authorised to enter into forward commitments this year with the object of acquiring additional arms and armaments. This authorisation could involve expenditure of up to $60m next year but, as the orders placed will include long leadtime items, there will be a continuing commitment for expenditure in later years. A decision has also been taken to proceed with major airfield works at Learmonth, Western Australia; it is unlikely that there will be any expenditure on the project in 1969-70. AH of these proposals, about which details will be given in the course of the Budget debate, will add substantially to our defence capability.

Further additions to the strength of the Forces are planned for the year ahead. It is expected that, by the end of this financial year, the strength of the Navy will have risen from 16,943 to 17,360, of the Army from 46,525 to 48,010 and of the Air Force from 22,712 to 23,660. These additional numbers are required to man new ships and aircraft coming into service, meet operational commitments overseas and provide supporting clements in Australia. The Citizen Military Force is expected to increase from 34,256 to 36,000.

Social Welfare

The expenditures grouped under social welfare constitute the largest single item in the Budget. They include expenditure on social services, repatriation, health and housing and are estimated to rise this year by $192,n to total SI, 659m.

Over the past year, the Government has continued to give a great deal of attention to this area. In a wide and searching examination of the needs of the less fortunate members of the community, we have had the assistance of the Welfare Committee of Cabinet. The proposals that I shall now outline give relief to the aged and our needier people and at the same time give positive incentives to thrift and selfreliance.

Age, Invalid, Widows’ and Service Pensions

The maximum weekly rate of pensions payable to single age and invalid pensioners and widows with children will be increased by SI to $15 per week. For widows without children the new weekly maximum rate will be §13.25. The pension payable to a married pensioner couple will increase for each by 75 cents a week so that the maximum rate of their combined pensions will be $26.50. Persons in receipt of service pensions - which are repatriation benefits - will receive similar increases as will tuberculosis sufferers in receipt of allowances. For the future, the hitter will, in addition, be eligible for certain benefits and concessions available to social service pensioners.

The Government has given particular attention to the needs of widows with children and proposes to introduce special measures to assist them. The allowance payable for each child, after the first, of a widow pensioner will be increased by $1 a week to bring the total payment, excluding child endowment, for each such child to $3.50 a week. This benefit will also be extended to children, other than the first, of age, invalid and service pensioners. As a further measure of assistance, the mother’s and guardian’s allowance is to be increased from the present rate of $4 per week to $6 per week in cases where there is a child under the age of 6 or an invalid child requiring full lime care. As well, the deduction from income for means test purposes for a dependent child of a pensioner is to be increased by SI a week to S4 a week. A widow pensioner with, say, three dependent children may thus earn $22 a week, hold property of a value up to S4,500 and still receive full pension and allowances. All these new benefits will be extended to age, invalid and service pensioners in appropriate cases.

We have also decided to modify the residence qualifications for widows’ pensions so that certain women who are widowed overseas may be eligible for a widow’s pension on return to Australia provided they have lived in Australia for a continuous period of 10 years. Because of the number of persons who have, in the past, migrated to Australia, and now wish to visit their home country, it is intended to permit pensioners making temporary visits overseas to receive payment of pension for up to 30 weeks absence on return to Australia. The present limit is 12 weeks.

Persons who become pensioners because of the proposed increases in basic rates of pension will become members of the Pensioner Medical Service, giving them entitlement to free medical and hospital treatment and free pharmaceutical benefits. They will be entitled also to other subsidiary benefits provided by the Commonwealth, such as reduced radio and T.V. licence fees, telephone rentals, hearing aids and funeral benefits. Persons who become pensioners for the first time because of the introduction of the ‘tapered’ means test - to which I shall now refer - will not, however, be eligible for membership of the Pensioner Medical Service or entitled to any other subsidiary fringe benefits.

Liberalisation of the Means Test 1 now come to the liberalisation of the means lest. Liberalisation has been the continuing policy of the Government, and the proposal I now outline will represent the most significant move forward since the Government assumed office.

Under present pension arrangements, where a pensioner has means in excess of the ‘free’ level - $10 per week in the case of a single pensioner and $17 per week in the case of married pensioner couples - the pension payable is reduced by $1 for every $1 of means in excess of these limits. This provision does not provide any incentive to earn or provide for additional income. The Government proposes, therefore, to introduce a ‘tapered’ means test under which additional means in excess of the ‘free’ limits to which I have referred will, in future, reduce the age, invalid, widows’ or service pension by only 50 cents for each additional dollar of means. As a direct consequence of this change, single pensioners with means in excess of$ 10 per week will all receive increased pensions and eligibility for some pension will not cut out until their means reaches $40 a week instead of $24 - the cut-off point at the existing pension rate. In the case of married couples, both being pensioners, eligibility for some pension will continue until their joint means reach a level of $70 per week.

When I come to the revenue estimates I shall outline additional concessions we propose to give under the Income Tax Age Allowance to take account of the ‘tapered’ means test.

It is expected that approximately 250,000 persons will become eligible either for pension for the first time or for increased pensions under the proposed ‘tapered’ means test.

Aged Persons Homes Scheme

We propose also to introduce a new allowance of $5 a week for persons of 80 years of age or over who receive approved personal care while living in hostel type accommodation provided by organisations eligible under the Aged Persons Homes Act. It is also proposed to amend that Act so that the value of land, acquired before 1957, will be eligible for subsidy. Previously, the value of land purchased or held by an aged persons’ homes organisation prior to 1957 has been excluded from the capital cost for the purposes of determining the amount granted by the Com monwealth towards the erection of a new home.

Unemployment and Sickness Benefits

The rates of benefit payable to unemployment and sickness beneficiaries will be raised. In the case of a married minor or adult the rate will be increased by $1.75 to $10 per week and the allowance for a dependent wife by $1 to $7 per week. Where there are children in the family of an unemployed or sickness beneficiary, the allowance for children under 16 will be raised by $1 to $2.50 a week in the case of a first child under 16 and by $2 to $3.50 a week for second and subsequent children. Appropriate increases will be made in the allowance payable to unmarried minors. Where they have no parent living in Australia they will receive the adult rate of benefit. At the same time the amount of income which may be received without affecting entitlement to the full rate of benefit is to be increased by $2 to $6 a week in the case of adults or married minors and from $2 to $3 per week in the case of unmarried minors.

In order to relieve hardship in cases where there are frequent periods of unemployment or recurrent sickness, beneficiaries will in future need to serve only once in any period of 13 consecutive weeks the waiting period of 7 days before unemployment or sickness benefit can be paid. The Director-General of Social Services will also be authorised to exercise a discretion to waive recovery of all or part of sickness benefit in. cases of hardship or special circumstances such as where inadequate compensation or damages are obtained. At present full recovery is mandatory.

The total cost of all of these proposals is estimated to be $73m in 1969-70. In consequence, total expenditure on social services this year will be $999m.

Health Benefits

Consideration has been given to the recent recommendations of the Nimmo Committee. It is now proposed to provide free health insurance benefits equal to standard fund and Commonwealth benefits for- family groups of at least two units, excepting those of pensionable age, where the family cash income does not exceed $39 a week; o all unemployment and sickness beneficiaries for the period for which they are on benefit plus four weeks - but if they are not insured when first entitled to benefit, there will be a waiting period of two weeks; all migrants for a period of two months after arrival in Australia.

Details of the machinery under which these benefits will be made available will be announced shortly.

Housing

The Commonwealth is already assisting in the provision of housing for the aged, particularly through the Aged Persons Homes Scheme. Nevertheless, we recognise that the housing of some single age and service pensioners with little or no means apart from their pension is below acceptable standards and the rentals they are required to pay are excessive. The States are already providing self-contained dwelling units including units for single age pensioners at reasonable rentals. We believe that more should be done and therefore propose to offer to the States non-repayable grants of $25m over five years, beginning this year, so that building of this type of dwelling can be expedited.

Repatriation Benefits

We propose a number of improvements in repatriation pensions and benefits.

The pension payable to a totally and permanently incapacitated war pensioner will be increased by S2.50 per week to $36 per week.

Last year we introduced a new form of assistance - a special compensation allowance payable to certain of the more seriously incapacitated general rate pensioners. We propose to increase this allowance by $2 per week so that a general rale pensioner who qualifies for the allowance will receive $17 per week where his incapacity is assessed at 100% and $12.75 where the assessment is at 75%. The rate of pension payable to those able to work only part-time or intermittently because of a war-caused disability - the intermediate rate - will be increased by $2.25 to $26.50 a week.

War widows’ pension will be increased by $1 to $15 a week, and in addition, the domestic allowance payable to most war widows will be increased by 50 cents a week. In total, then, a war widow receiving domestic allowance will receive an increase of $1.50 per week, bringing her total basic pension to $22.50 a week.

Although they were increased last year, we propose to increase again the allowances payable to certain war pensioners in respect of attendants. The recreation transport allowance and the allowance to assist in meeting the running expenses of a specially equipped gift car will each be increased.

War Service Homes

An extra $5m is to be provided for War Service Homes taking the total to $55m. This recognises the full-year effect of last year’s increase from $7,000 to $8,000 in the maximum loan.

Education

The Commonwealth has progressively increased the scale and broadened the scope of its financial support for education. Through specific purpose payments and general financial grants assistance is being provided at all levels and for all types of schools. Over $265m will be appropriated in the Budget for education this year, or 38% more than last year’s expenditure. Within the total, payments to the States specifically for education will increase by 53% to $165m.

Payments will include the full-year cost of the new programmes of capital grants for secondary school libraries and pre-school teachers colleges introduced last year. Provision is being made for the programme of development of Universities and Colleges of Advanced Education in prospect for the 1970-1972 triennium, as well as for other new policy proposals, to which I shall refer shortly.

Detailed statements about education, including the recommendations of the Australian Universities Commission and the Commonwealth Advisory Committee on Advanced Education for. the 1970-1972 triennium, will be made shortly.

Broadly stated, the triennial programmes are based on the expectation that by 1972 total student enrolment, full and part-time, in Universities and Colleges of Advanced Education will be more than 45,000 greater than in the current academic year. To meet this expected demand, these institutions will need better capital facilities and greater appropriations for recurrent costs.

The recommended programmes for these institutions in the 1970-1972 triennium aggregate $9 10m - an increase of $263m on tha programmes of the 1967-1969 triennium. The recommended programmes for Colleges of Advanced Education will account for $127m of this increase. Reflecting the growing national importance of applied science and the technologies, expenditures on these Colleges will be more than doubled in the coming triennium.

Of the amount of $9 10m recommended for Universities and Colleges of Advanced Education during the next 3 calendar years the Commonwealth will provide approximately $420m, the remainder being provided by State Governments and by the fees and other income of the institutions themselves.

During the triennium, grants to the States for Universities and Colleges of Advanced Education are expected to amount to $227m and $93m respectively. In 1969-70 the grants will be $96m, or $19ra more than last year. Grants for science laboratories, technical training facilities, teacher and pre-school teacher training colleges and secondary school libraries will, in the aggregate, increase by $21.5m.

For the Australian National University and the Canberra College of Advanced Education, we will provide S30.2m in 1969- 70, of which S22.5m is for recurrent expenditure and S7.7m is for capital expenditure. For the next triennium as a whole, the estimated provision will be about $100m.

We share with the States the conviction that the training and education of teachers is critical to help us achieve our objectives. We have reviewed our policy relating to teacher training and have made two decisions. First, we will continue with unmatched capital grants for the construction of teachers’ colleges by the States after the present programme is completed in June 1970. These grants will increase to $30m in the 3 years to June 1973 as compared with $24m in the previous 3 years. Second, we will support expenditure both capital and recurrent on teacher education within Colleges of Advanced Education and, indeed, have given the first approvals for the 1970- 1972 triennium.

Scholarships

The number of Commonwealth scholarships at the tertiary level will be increased. From the beginning the 1970 academic year, the number of Later Year Awards for university students will be increased by 2,000 to 4,000. It is also intended to change the basis upon which Mature Age Scholarships will be awarded. The number of scholarships tenable at Colleges of Advanced Education will also be increased substantiallyfrom 1,500 to 2,500 a year.

Running Costs of Independent Schools

I come now to an important new aspect of policy relating to education in independent schools. This is a significant development in the policy introduced about 5 years ago. From January 1970 the Commonwealth will contribute towards the running costs of independent schools throughout Australia. A subsidy at the rate of $35 per primary pupil and $50 per secondary pupil per annum will be paid to the schools. With the assistance State Governments will be providing, the Commonwealth subvention will both help the parents and enable the independent schools to improve their standards.

The State Governments will be offered grants under Section 96 of the Constitution for transmission to independent schools in their respective States. The necessary legislation will be introduced later in these Sittings. In the case of the Australian Capital Territory and the Northern Territory, payments will be made direct to the independent schools as an addition to the present per pupil subsidies.

The estimated cost of this new measure is $16.3m in 1969-70. Of this amount, S16m will be paid to the States. In the first full year, the comparable figures are $24. 5m and $24. lm respectively.

Subsidies on Fertilisers

Turning to our rural industries, I now outline proposals that will continue our aim to assist them with their more pressing problems.

A subsidy of $6 a ton on standard superphosphate used in Australia was introduced in August 1963. Last year we decided to extend to October 1971 the operation of the authorising legislation and to increase the standard rate of subsidy to $8 a ton with effect from 14th August 1968. This year we have decided to increase the rate of subsidy still further. As from tomorrow the standard rate will be $12 per ton. At the new rate the subsidy is expected to cost $50m this year or $19m more than last year.

In August 1966 we introduced a subsidy on nitrogenous fertilisers, for which the authorising legislation is due to expire in October 1969. We have now decided to continue the subsidy for a further 3 years at an estimated cost in 1969-70 of $l5m or $4m more than last year.

Wool Research and Promotion

To afford further assistance to the woolgrowing industry, the Government has decided to offer the industry a more generous arrangement for the financing of wool research and promotion. For 3 years commencing 1st July 1970, the growers’ levy would be reduced from two to one per cent and the Government would meet the balance of the expenditure required for research and promotion, provided its contribution does not exceed an average of $27m per annum. In effect, the growers’ levy would be halved and the Government’s contribution approximately doubled. The Government’s offer will have to be negotiated wilh the Australian Wool Industry Conference together with any changes that might be required in the areas of responsibility for the administration of wool research and promotion by virtue of the increased financial commitment assumed by the Government.

Wheat Industry Stabilisation Scheme

Since 1960-61 the Commonwealth has each year made payments to the wheat industry to enable returns to growers to be raised to the guaranteed price in respect of specified quantities of exported wheat. In 1968-69 the payment involved was $43m.

This enabled the return to growers to be raised by more than 28 cents to $1.64 per bushel f.o.r. on 1 50 million bushels of export wheat in respect of the 1967-68 season. The Wheat Industry Stabilisation Act 1968 provides a guaranteed price on exports of up to 200 million bushels in respect of each of the five wheat seasons 1968-69 to 1972-73. For the first of these seasons the guaranteed price is $1.45 per bushel f.o.b. and for subsequent seasons it will be adjusted in accordance with movements in cash costs. It is expected that a wheat stabilisation payment in respect of the 1968-69 crop will be made in 1970-71. No provision will be needed for a payment this year.

Drought Bonds

The main features of the Government’s Drought Bonds scheme were outlined in a statement earlier this year. Legislation authorising their issue will be introduced shortly, with a view to the first series of Drought Bonds being available for subscription on 1st November next.

Industrial Research and Development Grants

Grants arc made by the Commonwealth to encourage additional expenditure by Australian manufacturing and mining companies on research and development. Expenditure in 1969-70 is expected to double, increasing to 55 10. 8m from $5.3m in 1968-69.

Post Office

The provision this year for the Post Office is $229m. This compares with a provision last year of $222m and actual advances of $204.5m. The increase in this year’s provision over actual advances in 1968-69 is due in substantial measure to two special circumstances; first, in 1968-69 the Post Office was able to achieve a greater improvement in its net cash operating surplus than is expected in 1969-70 and second, payments on some large equipment orders, which were expected to fall due last year, now have to be met in 1969-70 instead of hist year.

Other Expenditures

The largest absolute increase in any of the main classes of expenditure is the rise of $l86m in payments to or for the States - an increase of 12.8%. In addition, the Stale works and housing programmes will increase by $48m to $758m. Of this amount SI 32m has been allocated under the CommonwealthSlate Housing Agreements.

Departmental running expenses are estimated to increase by $43m to nearly $443m, or 10.6% higher than last year’s expenditure.

External economic aid will be increased by $13m, or 9.3%, to total more than $150m. This figure includes $96m for assistance to Papua and New Guinea, which will be $9m, or 10.3% greater than last year.

Commonwealth payments to industry will, on present estimates exceed $200m, a decrease on last year of $ 10.3m. As I have said, no wheat stabilization payment is expected this year. Last year the cost was $43m. Devaluation compensation for primary industries is estimated at $29m, a reduction of $6m. Partly offsetting these decreases are the increased subsidies on superphosphate and nitrogenous fertilizers, and the increased grants for industrial research and development to which I referred earlier.

We propose to pay a further amount of approximately $7.2m to the Aboriginal Advancement Trust Account to meet special expenditure in 1969-70, in particular in the fields of health, education and housing. The balance of about$1. 3m in the Trust Account at 30th June 1 969 will be used to meet outstanding commitments under similar programmes commenced last year; expenditure in 1968-69 on these programmes was approximately $4.0m.

Of the$10m appropriated to the Aboriginal Advancement Trust Account last year, $4.7m was subsequently paid to the Commonwealth Capital Fund established under the Aboriginal Enterprises (Assistance) Act 1968. It is not expected that any substantial addition to this Fund will be required in 1969-70.

This year we are seeking an appropriation of $2. 85m for grants in support of the performing arts, an increase of$1.2m over expenditure in 1968-69. The Australian Council for the Arts, now in its second year, has provided valuable advice to the Government.

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REVENUE ESTIMATES, 1969-70

Another year of high and rising incomes and buoyant expenditure in all sectors of the economy is expected and we have based our revenue estimates on this expectation.

Receipts from all sources except borrowing are estimated to rise to $6,954m - an increase of 13.5% on last year’s receipts. Total taxation revenue is estimated to be $6,237m, an increase of 14.7% on last year.

With a large increase of revenues in prospect we considered, in the overall budget strategy, whether greater expenditure than those proposed could have been financed or whether we could have given greater tax concessions than those I am about to mention.

The essence of the situation we face is that, if our revenues rise as much as expected, it will be largely because of highly expansive economic conditions. If there were, in these circumstances, greater increases in expenditure than those proposed, we would have added further to demand on resources already under some strain. It would be much the same if we reduced taxation substantially.

We have not therefore considered it prudent to give general concessions in taxation. We have, however, thought it desirable, in order to deal with special circumstances, to propose some changes in taxes and rates of charges.

Income Tax - Age Allowance

We propose a further liberalisation of the income tax age allowance granted to residents of Australia who are of qualifying age, that is, sixty-five years for men and sixty for women.

Under the present age allowance an aged person is exempt from tax if his or her own taxable income does not exceed $1,248 while a married aged person is exempt if the combined taxable income of husband and wife does not exceed $2,184.

For 1969-70 no tax will be payable by an aged person whose taxable income does not exceed $1,300 or by a married aged person unless the combined taxable income of husband and wife exceeds $2,262.

In order to cushion the transition from complete exemption to taxation at ordinary rates of tax, the age allowance provisions include ‘shading-in’ arrangements to limit the amount of tax payable by an aged person with a taxable income somewhat in excess of the exemption levels. To take account of the new ‘tapering’ provisions for age pensions to which I have already referred, we propose to reduce the tax payable under these limiting provisions and to extend the ranges of income within which the limitation confers a benefit.

Convertible Notes

We propose also to amend the income tax law as it now applies to convertible securities. In 1960, the income tax law was amended to disallow the deduction of interest payable by companies on convertible securities. This action was taken because it was evident that convertible notes were being used largely as a means of avoiding taxation. In many cases, the convertible notes were essentially deferred issues of shares.

The Government recognises that convertible issues can serve legitimate business purposes, it has therefore been decided to restore deductibility of interest for income tax purposes on convertible issues but this will be made subject to conditions designed to minimise tax avoidance.

This proposal will be fully explained when amending legislation is brought in.

Capital Subscriptions to Mining and Other Companies

The Government has also decided that the present law granting tax deductions for subscriptions of capital to certain kinds of companies can, for some taxpayers, confer unjustified benefits. lt is a general principle of the tax law that where a deduction for an amount of expenditure is authorised by more than one provision only one deduction is allowed. There is under the existing law an exception to this principle, with the effect that where certain shares are sold by a share dealer, deductions granted with the general aim of facilitating the financing of mineral exploration or afforestation arc disregarded in calculating the profit or loss on sale. In effect, a taxable profit on a sale of the shares is reduced through the allowance of two deductions for the cost of the shares and a deductible loss on a sale is likewise increased. In some cases, the reduction in tax liabilities can be as great as the total cost of the shares. lt is proposed to amend section 82 of the income tax law so that dealers in shares will be allowed only one deduction for capital subscribed to mining or afforestation companies. The amendment will affect moneys paid on shares after today, except where the dealer owned the shares on or before today, or became the owner after today pursuant to an application lodged, or an agreement made, by today. People who are not regarded as dealers for tax purposes will not be affected by the amendment.

Primary Producers

I return to the Government’s frequently expressed intention to assist primary producers.

At present the cost of some structural improvements made by primary producers for conserving water or fodder - such as tanks, silos and hay sheds - is deductible for income lax purposes by way of depreciation allowances over five years. The cost of other structural improvements - such as dams, underground tanks and bores - made for these purposes is deductible in full in the year in which it is incurred. It is proposed that, as to expenditure in the income year 1.969-70 and subsequent years, the cost of all structural improvements of this nature will qualify for deduction in full in the year in which it is incurred.

Estate Duty

The Government has also decided that some relief should be granted from estate duty in the case of the estates of primary producers. In reaching this decision we had in mind the desirability of providing assistance to discourage the break ing-up of economic rural holdings because of the need to pay estate duty.

Relief will be granted in two ways. The existing exemption levels will, for primary production estates, be raised by 20 per cent. Some additional relief from duty will be granted in respect of land and other assets normally used in primary production such as livestock and farm plant and machinery, in broad terms, an estate will qualify for these reliefs when the assets arc predominantly of the kind I have mentioned and the income of the deceased person was derived over the preceding five years principally from primary production. Relief will be granted for estates of a net value of less than $250,000.

The relief will apply to estates of persons who die after the authorising legislation has been assented to.

As a complementary measure some administrative requirements of the estate duty law are to be relaxed. The necessity to lodge security in order to obtain an extension of time for payment of duty is to be eliminated and the statutory limit of two years on extensions of time is to be removed.

Air Navigation Charges

Consistent with the Government’s policy of narrowing the gap between airport and airway costs and revenues, we propose to increase by 10% the rates of air navigation charges payable by the air transport industry for the use of airport and airway facilities provided by the Commonwealth. The new scale will apply only to domestic flights. As for international flights, international operators have claimed that they are already meeting a relatively high proportion of costs. A study is currently being undertaken of airport and airway costs and revenues and the Government will give further consideration to charges for international flights.

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MONETARY LIQUIDITY

Last year, despite a domestic surplus of about $200m in the Budget, the money supply increased by $1,1 69m. The rate of change in bank customers’ accounts suggests that the turnover of funds, or velocity of circulation, also increased. As I have already said these monetary influences undoubtedly contributed to the rise of inflationary pressures.

This year we expect the Budget to produce a domestic surplus of about $500m. This would withdraw a similar amount from the money supply. Against that, receipts will exceed payments in private transactions abroad - possibly by much the same amount - and this will add an equivalent amount to the money supply. Further additions to the money supply will be made from other sources. In particular, the Reserve Bank will again add to Rural Credits advances outstanding as it finances payments on delivery of wheat and other commodities pending sale.

Loans and advances by the banks will again add to the money supply. Action has been taken to moderate the rate at which the banks increase their lending. Trading banks are being called upon to transfer to their Statutory Reserve Deposits and additional amount equivalent to 1% of their deposits. This action has been accompanied by a rise of 0.25% in maximum trading bank fixed deposit and maximum overdraft rates of interest. A new maximum rate of 5% now applies to both fixed deposit and certificates of deposit and within this maximum the term and rate structure has been made more flexible.

To counter the influences which add to monetary liquidity, the Reserve Bank has been a net seller of Commonwealth securities in its open-market operations. Last year it made net sales of about $78m. A new pattern of rates emerged and was reflected in the Commonwealth loan floated last month, with the yield on the long-dated securities rising from 5.4 to 6%. We have aimed at consolidating the strength of Commonwealth securities in the market.

These measures are part of a precautionary move against inflatinary trends. They will not in any way inhibit the real growth of the economy. The fact is that a large volume of monetary liquidity has been carried over from the past financial year. In the interests of stability and sound growth, we must limit the amount that will be added to liquidity this year. The real problem is to keep the increase within safe bounds and to prevent it becoming excessive.

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CONCLUSION

This financial year will take us over the threshold of the next decade, the 1970’s. From an economic point of view, the prospects are basically favourable. The new resources being opened up must add increasingly to output both for domestic use and for export. Our productivity has risen and will continue to rise. Migrants are pouring in and the workforce is building up rapidly. We are attracting a good flow of capital from overseas. Our reserves are reasonably strong and, despite monetary and trade disturbances abroad, our exports are growing, diversifying and reaching out into still wider markets.

This provides a margin of safety. It gives us some scope and time for any adjustments needed to keep the economy on a sure and steady course ahead.

The broad promise of future growth does not however reduce, or change essentially, the continuing problem of economic management, that is, of keeping the national effort close to the limit of available resources but not allowing it to exceed this limit. The problem is with us this year in characteristic form. Rapidly though our supplies of labour, equipment and materials are increasing, demand is right up with them and is growing fast. There is a clear possibility that excess demand, helped by excess liquidity, could upset the balance of the economy. This Budget, in its economic aspect, together with the monetary measures taken lately, is primarily directed to minimising this risk.

But budgets are much more than instruments of economic policy. This Budget is designed to share some of our growing wealth with the less fortunate, to provide still better educational facilities for the young, to help rural industries improve their productivity and to meet competition abroad, and to expand great developmental works in many parts of the country.

Although economic feasibility will, in the end, set limits to what can be done in any field, economic purposes will have little meaning unless they contribute to personal and humane values. It is the physical and intellectual progress of the community and of the individual human beings in it that ultimately counts. It will be seen that humane values are in the forefront of the purposes this Budget is designed to achieve.

Debate (on motion by Senator Murphy) adjourned.

Senate adjourned at 8.58 p.m.

Cite as: Australia, Senate, Debates, 12 August 1969, viewed 22 October 2017, <http://historichansard.net/senate/1969/19690812_senate_26_s42/>.

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