1946-11-26 18 1 1 REPS 533 0 House of Representatives. 1946-11-26 Mr. Speaker (Hon. J. S. Rosevear) took the chair at 3 p.m., and read prayers. 533 Questions 533 LEASES TO PRIVATE ENTERPRISE 533 KNX UAP; LP from 1944 0 0 HARRISON, Eric Mr HARRISON - Has the Prime Minister read the authoritative press statement by manufacturing firms which have established factories on the site of the former Commonwealth explosives factory near St. Mary's, that the Commonwealth Government had enticed them with rosy promises to commence operations there and had then let them down badly? Will the Prime Minister state whether, when these factories had been established, the Government imposed conditions which had not previously been mentioned; that when the firms endeavoured to obtain copies of the leases of premises they had taken over they were told that at least eighteen months would elapse before these could be prepared; and that the Government had increased rents by as much as 25 per cent. for factories which firms had sought to lease in order to obtain additional space for their operations? If these are facts, will the Prime Minister, in view of the Government's expressed policy of fostering secondary production, state what steps it proposes to take the right the position ? 533 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY - My attention has been drawn to statements published in an evening newspaper yesterday, and purporting to have been made by some firms which had established business undertakings at St. Mary's in the buildings formerly used by the Commonwealth for the production of explosives. I have spoken to Mr. Jensen, Chairman of the Secondary Industries Commission, which has been conducting negotiations in conjunction with the New South Wales Secondary Industries Commission for the conversion of Commonwealth munitions establishments to private secondary production. I understand that there is no foundation for the published statements. However, as the honorable member has asked a series of questions, I invite him to place them on the notice-paper so that I may obtain detailed replies. 533 EMPLOYMENT OF EX-SERVICEMEN 533 L0G 0 0 RYAN, Rupert Mr RYAN Has the Treasurer been informed that the Returned Sailors, Soldiers, and Airmen's Imperial League of Australia has protested against the failure of the Taxation Department to carry out the instructions of the Government in regard to the retrenchment of female employees with a view to the employment of ex-servicemen in their places? Have such instructions been issued? If they have been, what steps does the Government propose to take with a view to ensuring that they will be obeyed ? 533 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY - I have no recollection of having received any representations in regard to this matter. I shall make inquiries and endeavour to give a detailed reply later. 533 AUSTRALIAN BROADCASTING COMMISSION: CHILDREN'S SESSION; CRICKET 533 JWU 0 0 FRASER, Allan Mr FRASER - Will the Minister representing the Postmaster-General urge on the Australian Broadcasting Commission the desirability of re-examining the times at which it broadcasts descriptions of cricket matches in which the Marylebone Cricket Club team is engaged, with a view to preventing the children's session from being cut off the air by country regional stations? Each evening, the children's session is one of the most successful features broadcast by the Australian Broadcasting Commission. It has a listening audience of hundreds of thousands of young and older children, and normally is broadcast from 5.30 to 6.15 p.m. Country children can listen to it only when it is broadcast by relay stations. During the progress of the cricket matches to which I have referred, country regional stations switch off this broadcast for a period of twenty minutes, often in the middle of an interesting portion of it. This evening, through station 2CY Canberra, children will hear the first ten minutes and the last ten minutes of the broadcast, but they will miss the intervening period of 20 minutes. 534 10000 0 0 SPEAKER, Mr Mr SPEAKER - I think the honorable member has made sufficient explanation. 534 JWU 0 0 FRASER, Allan Mr FRASER The important point is that the children's session is a healthy one, and has an excellent effect on the child mind. This procedure of the Australian Broadcasting Commission- 534 10000 0 0 SPEAKER, Mr Mr SPEAKER - The honorable member may not discuss the merits of the broadcast. 534 BV8 ALP 1 0 CALWELL, Arthur Mr CALWELL - It is not within my province to make representations to the Australian Broadcasting Commission, but I shall ask the Postmaster-General whether he will discuss the matter with the commission, with a view to an amicable arrangement being reached that will serve the interests of both parents and children. We do not want civil war as the result of a mix-up with regard to cricket. 534 miscellaneous DESTRUCTION OF FISHING LAUNCH 534 KCA Capricornia LP-CP 0 0 DAVIDSON, Charles Mr DAVIDSON - Did the Minister for the Navy read the warning published in the Brisbane Courier-Mail a fortnight ago that shipping off the north Queensland coast was menaced by mines ? Is it correct that the crews of the 20th Mine Sweeping Flotilla, after operating in the New Guinea area, were given leave until early in the New Year? Is it further a fact that, within three months, more than 20 mines have been washed ashore on a 40-mile stretch of beach in the Minister's electorate? If so, in view of the tragic happening over the week-end, when a motorlaunch and its occupants were blown to pieces, will the Minister inform the House what steps, if any, he has taken to prevent a recurrence of such disaster ? 534 KZ9 Kennedy ALP Minister for the Navy 1 0 RIORDAN, William Mr RIORDAN - by leave- I deeply deplore the tragic happening on Sunday morning. To the bereaved relatives the Government extends its deepest sympathy. Immediately I heard of the occurrence, I ordered an investigation of the circumstances. The naval authorities have informed me that the tragedy occurred in a prohibited area, and was due to contact, not with a floating mine, but with one moored in our own mine-fields. I am still awaiting further details. Prohibited areas have been widely advertised in the press and in notices to mariners and harbour masters. As to mine sweeping generally, the 20th Mine Sweeping Flotilla was formed at the end of 1945 to clear all waters on the Australian station of mines of both enemy and allied origin, including our own defensive mine-fields. The flotilla originally consisted of Swan, as senior officer ship, and eight Australian mine sweepers, assisted by three harbour defence motor launches and one general purpose vessel. The priority of sweeping decided on was - (1) Off Sydney, (2) Bass Strait, (3) off Hobart, (4) South Australian waters (all these areas having been mined by the enemy some time or other), (5) New Guineaarea (both of allied and enemy origin), (6) Great. Barrier Reef (our own defensive mine-field). To clear the commercial routes (the southern area was simple sweeping with few mines likely to be encountered, and served as good practice for the flotilla in comparatively easy water). To open up the New Guinea area to shipping. Finally to clear the Barrier Reef mine-fields which were no menace to shipping, and the exact positions of which we were fully aware and had made known through " Notices to mariners ", advertisements in the press, &c., to those concerned. Two of the A.M.S. vessels, Deloraine and Echuca, were paid off in June and July, 1946, as they were urgently in need of refit, and as a contribution to the general demobilization which was taking place. In October last, A.M.S. vessels Katoomba and Lithgow were ordered to be paid off, as their retention in service would necessitate holding a considerable number of mine-sweeping specialists with high points for demobilization. The crews of these vessels are now in process of dispersal. At the beginning of this month the A.M.S. vessel Ararat, which had become unserviceable due to arduous work in the New Guinea area, was ordered south to be paid off. The ship's company of this vessel will now commission Echuca, which has been refitted in Sydney. During the course of nine months' operations, all the fields on the south and south-east coasts of Australia have been entirely cleared. The greater part of the very extensive New Guinea area has been cleared, but will need about two months' additional work by two sweepers after the New Year to ensure complete clearance. This work could not be completed this year owing to damaged equipment, the result of very successful sweeping when many mines were exploded, and good " bags " were obtained. Sweeping in coral waters is very damaging to equipment, and results in extensive loss of sweeping material. Swan, Warrnambool, Cowra and Mildura are now on their way to Sydney to refit, and their crews will be given leave after their arduous work in the New Guinea area. Towards the end of January, 1947, they will be joined by Echuca and, with their three harbour defence motor launches and one general purpose vessel, will continue minesweeping. Two of these sweepers will complete the New Guinea area; the remainder will commence work on the Barrier Reef field. Mine-sweeping is a highly skilled and dangerous occupation. Ships cannot be hastily commissioned and despatched on this work. The ship's company must have adequate training at sea in the handling of their difficult equipment. In the course of time, some of our own mines break away from their moorings, particularly in bad weather. The mines are fitted with a device to render them safe should the moorings part. Three general purpose vessels manned by crews specially trained in rendering mines safe and dis- posing of them are at present employed dealing with mines when they are found adrift, or as they come ashore. The genera] purpose vessels are about 50 feet long, with a crew of ten, mostly specialists in the disposal of mines, which requires a different technique from mine-sweeping. It should be appreciated that, with nearly 1,000 miles to patrol, there may 'be delay between a mine being reported and its ultimate disposal, as these vessels must work to a programme, which is governed by the number of mines reported ashore or afloat, and their location. Over 200 mines have been dealt with by these specialists, and from the latest reports there are still 40 to be destroyed. Mines will continue to break from the field, and the work of disposal must continue until the field is completely cleared. An additional 30 mines have been reported on outlying reefs which are inaccessible to the general purpose vessel. These mines present no danger to shipping as they are equally inaccessible to ships or fishing vessels. At the present time I am exploring the possibility of increasing the number of mine-sweepers for use in removing the mine-fields off the Queensland coast. 535 Questions 535 535 009MB 0 0 MCEWEN, John Mr McEWEN - I have received from a wheat grower constituent a communication in which he points out that regulations exist which forbid second-hand cornsacks being used for wheat, and stating that farmers in his neighbourhood have been told that only approximately 50 per cent, of their requirements of cornsacks can be supplied. He asks whether, in the circumstances, the regulations can be varied to permit of wheat being delivered in second-hand cornsacks until such time as the Australian Wheat Board can meet the demand for new cornsacks ? 535 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD - The honorable member for Indi is doubtless aware of the great difficulty associated with the supply of adequate quantities of cornsacks to wheatgrowers. That shortage has necessitated the Australian Wheat Board taking steps to ensure that the cornsacks available shall be used to the best advantage. I arn confident that that body will act with justice to wheatgrowers in Victoria, and will ensure that both those wheat-farmers to whom bulk handling facilities are available and those who have not such facilities, and must therefore use bags, will be treated equitably. I shall bring the honorable member's question to the notice of the Australian Wheat Board, and. shall ascertain whether it is possible for that body to meet the requirements of the honorable member's correspondent. 536 BROADCASTING OF PROCEEDINGS 536 K0E 0 0 GAHA, John Dr GAHA - In view of the enthusiasm shown by the listening public in connexion with the broadcasting of parliamentary proceedings, will you, Mr. Speaker, bring before the Parliamentary Proceedings Broadcasting Committee the question of amending the Standing Orders to enable legislation to be introduced at such hours in the evening as will enable the bulk of the listening public to hear the arguments in favour of the legislation advanced by the Minister introducing it, and at least one speaker against it? 536 10000 0 0 SPEAKER, Mr Mr SPEAKER -The control of the broadcasting of parliamentary debates is in the hands of a special committee appointed by the Parliament. One of the principles laid down is that, as far as possible, the debate on any subject shall "be broadcast without interruption, and the committee has endeavoured to give effect to it. The fixation of broadcasting hours and the issuing of directions to the Australian Broadcasting 'Commission in respect of parliamentary debates, are matters for that committee. Having heard the views expressed by its members when that decision was arrived at, I cannot see much likelihood of the broadcasting of debates being arranged in the way indicated by the honorable member. 536 TRUSTEESHIP 536 KFQ 0 0 GULLETT, Henry Mr GULLETT - Will the Minister for External Affairs at an early date make a statement to the House giving details of Australia's draft trusteeship agreement for New Guinea, together with an outline of the criticism of the agreement by the Trusteeship Council of the United Nations, and also a full rep.ort of the reply to that criticism by the Australian delegate, so that the matter may be debated in this House? 536 DTN ALP 1 0 EVATT, Herbert Vere Dr EVATT - The draft agreement proposed by the Australian Government has already been placed before the Parliament; it was also referred to by ane 'in a recent debate on international affairs. The suggestions made for modifying the draft agreement will be placed before the House, together with the effective reply thereto by the Australian representatives at the United Nations conference. 536 INCOME TAX CONCESSIONS 536 JPT 0 0 BLAIN, Adair Mr BLAIN - Some time ago a special investigating officer from the Treasury visited the Northern Territory and the north-west of Western Australia in order to inquire into the working and living conditions of (people in those areas. When does the Treasurer expect to receive the report of that officer, what special allowance for income tax purposes will be granted to people on the basic wage in those areas, and is it intended that the special income tax concession granted to primary producers in the Northern Territory at the end of .June, 1946, -shall be extended? 536 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY - The decision to appoint an officer to examine and report upon conditions in the Northern Territory and the north-west of Western Australia was made as the result of representations by the Northern Territory Development Committee and, in the first instance, by the Premier of Western Australia. Mr. Hanlon, the Premier of Queensland, and Mr. Wise, the Premier of Western Australia, both represented that the special allowance of £40 already made for income tax purposes was not adequate to . meet the disabilities suffered by people living in certain remote areas, and I agreed that an officer of the Taxation Department should visit the areas concerned and report upon the matter. Because of the large area of territory to be covered this investigation has taken some considerable time. The investigating officer, who was given every assistance by the Premier of Queensland, has returned to head-quarters, but I have not yet received his report. When the report is received it will be considered by Cabinet, and any amendment of the existing law which may appear desirable, will be submitted to the Parliament for approval. As to the second part of the honorable member's question, the continuance of the exemption from income tax of primary producers du the Northern Territory is a matter for decision by the Government in the light of the investigating officer's import. It is probable that during the sittings of the Parliament early in the New lt ear a number of amendments will !'C made to the income tax act in respect of such matters as double taxation and certain other recommendations made by the special taxation committee. Such amendments as cay appear desirable 'as the result of the report of the special investigating officer will, if possible, be incorporated in that legislation. 537 BRAN AND POLLARD FOR FEED 537 KJQ 0 0 JAMES, Rowland Mr JAMES - Is it a fact that many poultry farmers "are killing off their flocks and walking off their holdings because of their inability to obtain sufficient milled grain offal ? Is the Minister for Commerce and Agri-culture able to state why adequate supplies of such offal are not available, and does he not believe that, having regard to the important part played by them during the war period, poultry-raisers should now receive adequate supplies of pollard? 537 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD - Due to drought conditions in New South "Wales flour mills in that State will bo able to work only two shifts instead of three as -formerly. That, of course, means that the output of bran and pollard will be diminished. Supplies of wheat are to be shipped to New South "Wales from South Australia and Victoria, where more favorable harvest conditions are being experienced. It is hoped that these supplies will reach New South "Wales and Queensland in time to prevent the wholesale slaughter of poultry which the honorable member has envisaged. 537 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - Several times I have asked the Minister for Commerce and Agriculture to ascertain whether the increased supply of poultry feed promised by him to Queensland has been provided. Can he state the quantity of feed sent there in the last three weeks? Is the concessional price for wheat used by poultry breeders in Queensland to continue ? 537 KYC 0 0 POLLARD, Reginald Mr POLLARD - Queensland supplies are being and will be drawn from New South Wales and South Australia until this season's crop is available. Supplies will then be provided from Victoria or South Australia. Last week, 3,000 tons was shipped from South Australia and another 2,500 tons is now being loaded for early despatch; 2,700 tons went by rail from New South Wales to Queensland in the week ended the 23rd November. Supplies from New South Wales are being railed chiefly through Wallangarra. About 140 tons a day is sent through Kyogle. Special representations have been made to the New South Wales Government for priority in haulage for this wheat for the rest of the year. The Commonwealth Government has agreed to carry the excess freight incurred from South Australia and Victoria to New South Wales and Queensland to help stock-feeders through the drought. 537 537 KQK 0 0 MCDONALD, Allan Mr MCDONALD - Will the Minister for Transport furnish the names and occupations of high priority users in Victoria who have been granted permits for the purchase of Chevrolet trucks and cars since August, 1946? 537 KX7 ALP 1 0 WARD, Edward Mr WARD - The scheme for the distribution of new motor vehicles is administered by State departments which act on behalf of the Commonwealth. I shall ascertain what information can be supplied to the honorable member on this matter. 537 REVENUE- DISCONNEXION OF TELEPHONES 537 KFX 0 0 HADLEY, James Mr HADLEY - In view of the reported statement by the Postmaster-General to the effect that postal revenue had increased from £182,000,000 in 1939, to nearly £500,000,000 in 1946, will the Minister representing the Postmaster-General ask his colleague to give sympathetic consideration to the removal of the half-penny postage surcharge as early as possible ? 537 BV8 ALP 1 0 CALWELL, Arthur Mr CALWELL - That matter is not really one for my colleague to decide. It is a matter of Government policy. No doubt, Cabinet will consider it in due course, and do justice as it always does. 538 KRE 0 0 SHEEHAN, Thomas Mr SHEEHAN - Is it a fact that the Postmaster-General's Department, acting upon advice received from the Police Department of New South Wales, disconnects telephones from the homes of persons who have been convicted of starting-price betting or gambling in private houses? Is this procedure followed by the Postal Department in New South Wales only? Has the department, acting on the advice of the police, ever disconnected telephones of any organization which has been convicted of black marketing ? 538 BV8 0 0 CALWELL, Arthur Mr CALWELL - I shall ask the Postmaster-General to supply information on those very important and urgent matters of public welfare. 538 VICTORIAN DISPUTES 538 KIX 0 0 HUTCHINSON, William Mr HUTCHINSON - I understand that the Minister for Labour and National Service had discussions in Melbourne yesterday with the Minister for Labour and trade union leaders in Victoria regarding industrial unrest in that State. Can he say what hope exists for an early settlement of present disputes in Victoria, and can he express an opinion as to whether another transport strike is imminent in that State? 538 KHL ALP 1 0 HOLLOWAY, Edward Mr HOLLOWAY - It is true that yesterday I discussed industrial disputes in Victoria with representatives of both sides. I do not think that another transport strike is imminent in that State. I am hopeful that there will not be another strike. Negotiations between the parties went on yesterday and are continuing to-day, and I believe that a formula will be found to obviate further stoppages. With respect to the disputes in which ironworkers and moulders are involved, negotiations continued all day yesterday. Certain recommendations have been made to the unions concerned as to the conditions upon which the men might resume, and those recommendations are now being considered. 538 538 KHY 0 0 HOWSE, John Mr HOWSE - Will the Minister representing the Minister for Supply and Shipping ask his colleague to consider releasing army utility trucks through the Commonwealth Disposals Commission direct to country centres in New South Wales to meet the deserving and urgent needs of many ex-servicemen and others engaged in primary production, many of whom have made representations to me? 538 KCF ALP 1 0 DEDMAN, John Mr DEDMAN - I shall ask the Minister for Supply and Shipping to see what can be done along the lines suggested. 538 538 KOL 0 0 MCBRIDE, Philip Mr McBRIDE - Will the Minister representing the Minister for Trade and Customs say to what country the Australian-made communist film Indonesia Calling has been exported ? Has any report been received as to whether the screening of the film has been permitted in any overseas country, and, if so, where? Has any report been received as to whether the film has been refused by any country and, if so, where ? If no reports have been received, will the Minister obtain the information and furnish it to honorable members as soon as possible? 538 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD - I shall be glad to refer the honorable gentleman's question to the Minister for Trade and Customs. 538 PAY AND CONDITIONS 538 KEP 0 0 FALKINDER, Charles Mr FALKINDER - In the absence of the Minister for Air I ask the Prime Minister : When were the rates of pay for members of the Permanent Royal Australian Air Force first fixed and last increased ? Will consideration be given to an early increase of the rates of pay to make conditions more attractive, particularly as the establishment is farbelow strength ? 538 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY - I cannot now supply the honorable gentleman with the dates he requires, but I shall let him have the information soon. Rates of pay generally are being reviewed and I am hopeful that the review will be completed early next year. Until then I shall not be able to say more on the subject of the honorable gentleman's third question. 539 539 K0E 0 0 GAHA, John Dr GAHA - I am informed that some hardship is caused by the fact that widows' pensions are paid only once a month, and I ask the Minister representing the Minister for Health and Social Services whether consideration will be given to having fortnightly payments made? 539 KHL FLP; ALP from 1936 0 0 HOLLOWAY, Edward Mr HOLLOWAY - I shall discuss the matter with the Minister for Health and Social Services with a view to having payments made fortnightly to pensioners who wish this to be done. 539 EFFECT OF COAL STRIKE IN THE UNITED STATES OF AMERICA 539 KNX 0 0 HARRISON, Eric Mr HARRISON - In view of reports that the continuation of the coal strike in the United States of America will reduce food shipments to Great Britain and other parts of the world, what steps has the Minister for Commerce and Agriculture taken to increase Australia's exports of foodstuffs to the United Kingdom? 539 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD - The situation is as it has always been: the Government is exporting the maximum quantity of foodstuffs, taking into consideration the shipping that is available for this purpose. 539 ALICE SPRINGS TO DARWIN LINE 539 JPT 0 0 BLAIN, Adair Mr BLAIN - If the route of the proposed Alice Springs to Darwin railway has not yet been determined, will the Minister for Transport give consideration to taking the line northeast from Tennant Creek, splitting the Barkley Tablelands in two, and thence to Darwin? I point out that if . the line were to follow this route it would run close to the Gulf of Carpentaria, thus giving Tennant Creek access to a gulf port. My second question arises from the following reported statement by the Premier of Queensland, Mr. Hanlon, published in Queensland Country Life on the 31st October : - The Premier (Mr. Hanlon) stated in Parliament that the Government still believes that the proposed uniform gauge railway should go north from Taroom through Blair Athol and Charters Towers. Such a line, he said, would open up an immense area of country suited to water storage, and it would give access to the gulf country, which was not only great cattlefattening country but was capable of much closer settlement than was usually associated with cattle-fattening only. If negotiations are still proceeding with the Queensland Government I urge that consideration be given to constructing the line on the route mentioned by the Premier of Queensland, in preference to the one recommended in the channel country of Cooper's Creek. 539 KX7 ALP 1 0 WARD, Edward Mr WARD - I shall arrange for the honorable member's representations to be considered at the appropriate time. In regard to his second question, there is no intention on the part of the Commonwealth to avoid its obligations under the agreement already entered into with the State governments of New South Wales, Victoria and South Australia for the construction of the north-south line. Honorable members are fully aware of what happened between the Commonwealth and Queensland. We regret that for reasons best known to themselves, members of the Queensland Government failed to agree to the scheme. However, negotiations with that State are proceeding. I am unable to state at the moment what the outcome will be, but as soon as I am in a position to make an announcement to the House I shall do so. 539 ADVISORY COMMITTEE ON PRODUCTIONS COSTS 539 JLZ 0 0 ANTHONY, Hubert Mr ANTHONY - I ask the Minister for Commerce and Agriculture whether the Government intends to give effect to any recommendation for an increase of the price of butter that may be made by the committee recently appointed to determine the cost of producing butter in Australia? If so, will any such increase be made retrospective? 539 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD - The question which the honorable member has asked involves a matter of policy. In due course, the Government will announce its decision for general information. 539 JLZ 0 0 ANTHONY, Hubert Mr ANTHONY - If the committee estimates that the price of butter is below the cost of production, will the Government grant a suitable increase? 540 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY - The committee was appointed, not as the result of a decision of the Minister for Commerce and Agriculture, but under a direction of Cabinet. Any comments or recommendations that the committee may make will be referred to Cabinet for decision, and the Government's policy will then be announced. 540 miscellaneous In Committee of Supply: Consideration resumed from the 22nd November (vide page 527), on motion by Mr. Chifley - That the first item in the Estimates under Division No. 1 - The Senate - namely, " Salaries and Allowances, £8,870 ", be agreed to. Mr. Menzies That the first item be reduced! by £1, as an instruction to the Government - to withdraw the budget and redraft it so as to include reductions in taxation upon personal incomes. 540 L0G Flinders 0 0 RYAN, Rupert Mr RYAN .- I congratulate the honorable member for Swan (Mr. Hamilton) on his maiden speech, which was admirable both for expression and substance. I am confident that the honorable member will prove a valuable acquisition not only to the Australian Country party, but also to the House of Representatives as a whole. The general tenor of the speeches of many honorable members opposite in this debate aroused in me feelings of apprehension. Reflecting the opinions of the Government and their colleagues, they completely failed to take into account the true situation in Australia to-day. They did not appear to realize the problems which face this country. If they have not a proper appreciation of our situation, all I can say is, " God help Australia ! ". Two speeches in particular, to which I listened attentively, were those of the honorable member for Fremantle (Mr. Beazley) and the honorable member for Martin (Mr. Daly). The honorable member for Fremantle ran true to form. He spoke at considerable length about the industrial unrest in Australia, and the grave and difficult problems that beset this country. In conclusion, he flung up his hands in despair, and asked, "Anyhow, what can we do about the situation ? ". I remind honorable members that the Prime Minister expressed similar impotence and despair last year. The honorable member for Fremantle proceeded to ask " How can we compel the coal-miners to hew coal; how can we make engine-drivers get into the cabins of their locomotives, and haul trains ? " Then he turned to us and asked, "Anyhow, what do you propose to do about it? What is your solution of this problem ? " The solution which we propose to apply, and which should be applied, is the very simple one of enforcing the law. This is being done to-day in Western Australia, where there is a Labour government with at least some courage. Ever since the Labour party has been in power during my membership of this Parliament, it has not done one thing to enforce industrial law. I say to the honorable member for Fremantle that there is a vast difference between the rule of law and lawlessness. Of course, the two things are completely incompatible. Unless the rule of law be applied, the whole of our legislation will be brought into contempt by the people who defy it. The Government must either enforce the law or amend the law by removing the provisions which it is frightened to enforce. 540 JLZ 0 0 ANTHONY, Hubert Mr Anthony - There is another alternative. The Government could resign. 540 L0G 0 0 RYAN, Rupert Mr RYAN - I hope that will come later. If the Government considers that the law is too harsh and the penalties provided by it too great, it should amend the law, though that would be a step in the wrong direction. By allowing even one law to be flouted, the Government brings the whole body of the law into general contempt. I refer now to the remarks of the honorable member for Martin. He was very optimistic. He seemed to think that the promised golden era had already arrived. The Prime Minister was much more modest. He merely said that the nation was on the eve of a golden era. I want to know on what grounds the honorable member based his claim. Everywhere in Australia -people are dissatisfied with their present, conditions of living. Instead of being on the threshold of a golden era, I say that the nation is walking away from one. 541 KRI 0 0 SHEEHY, Thomas Mr Sheehy - Does the honorable member often wonder why the Opposition cannot form a government? 541 L0G 0 0 RYAN, Rupert Mr RYAN - One of these days it will. The honorable member for Martin expressed a number of opinions, with most of which I cannot agree. I cannot call him to account for his opinions, because they are formed by his own ratiocination. Over that, of course, we know that he has no more control than anybody else can have. However, I call him to account for basing his opinions on what he considers to be facts, but which are not facts, as those of us who take the trouble to find out know. The honorable member made a strong attack on the right honorable member for Darling Downs (Mr. Fadden) and the right honorable member for North Sydney (Mr. Hughes). He accused them of having used secret funds to bring the trade union movement into contempt. Had he taken the trouble to examine the report of the Royal Commission which investigated such allegations, he would know that the money was used with the aim of bringing peace and contentment into industry and the trade union movement. Then the honorable member criticized the way in which the Opposition parties, when they were in power, dealt with the problems of industrial unrest. ' He spoke of trouble on the coal-fields and said that, because we had enforced the law, there had been a long drawn out strike during which the nation's coal reserves had been dissipated. Up to that point, his statements were reasonably correct. However, he omitted to say - perhaps because he did not know - that before the Labour party came into power those reserves had been increased to over 1,000,000 tons. After that date, they gradually dwindled until, eighteen months ago, we had no reserves at all. What was the reason for that? It was due entirely to the vacillation of the Labour Government. The honorable member then went on to discuss the profits of public companies, and mentioned the balance sheet of Tooth & Company Limited, with the object of making the point that its annual profit, which he claimed totalled hundreds of thousands of pounds, was typical of the profits that are being made .by all companies. 1 do not know what profit that company makes, but I believe it to be substantial. The honorable member and his colleagues, however, pick all the plums out of the pudding and neglect to mention the doughy residue that they leave untouched. Many companies in this country to-day are not making a big profit, and some of them are not making any profit. Last Thursday night, I studied in a newspaper the accounts of a small but important firm in Victoria, theRuskin Motor Body Building Company,, which this year did not strike a dividend. Hundreds of other companies, are making little or no profit. 541 6V4 0 0 DALY, Fred Mr Daly - The names of all who are in that category could be written on half a sheet of notepaper. 541 L0G 0 0 RYAN, Rupert Mr RYAN - A large sheet of notepaper would be needed for those with which I am acquainted. The honorable member then spoke about the great volume of production in this country. I forget, the total amount that he mentioned ; but that is quite beside the point. We know that the number of men and women employed in secondary industries to-day exceeds by 200,000 the number similarly employed before the war. The volume of production has increased in some degree. But what really counts is not the total output - that can be boosted up in many ways - but the man output hourly. If the honorable member took the trouble to study the details, he would learn that the man output hourly has declined considerably, compared with what it was prior to the war. Take the coal industry as an example. In 1936, the output per man in that industry was 3.5 tons. The latest figure that I have seen, that relating to the year before last, was 3.05 tons. Everyone knows that the output of the bricklayer and of employees in secondary industries has declined greatly - by as much as 30 per cent., I believe. The final point on this subject with which I shall deal is that of incentive. Many honorable members opposite have referred to this at different times. Their argument has been "What is the use of reducing taxes when the lower income earners benefit by only £1, £2, £3, £4, or £5 a year ? " They have missed the point entirely. I recall to their minds the statement made at different times in this House by the honorable member for Hunter (Mr. James). All of us remember it vividly; I certainly do. Time and again that honorable member has asked, "How can you expect the coal-miners to increase their output when all that they earn in overtime is taken from them by the Government ? " 542 KRI 0 0 SHEEHY, Thomas Mr Sheehy - That is not true. 542 L0G 0 0 RYAN, Rupert Mr RYAN - It is perfectly true. The honorable member for Hunter has asked the Government to make a special reduction of income tax on overtime. What matters is, not the reduction of tax on present incomes, but the increase of the tax burden when a higher range of income is reached, as a result of which a large portion of the extra earnings goes to the Government. Quite definitely, income tax has an enormous psychological effect on every one who has to pay it. Having made this explanation of the points on which I differ from the honorable member for Martin, I now confess that I thoroughly agree with some of the views that he expressed, in particular with his statement that the existing situation is extraordinarily complex and is not governed by a single factor. The factors which affect our industrial and financial situation are numerous, and of great importance. We know that the process of turning butter into guns is a difficult one. But it is aided by the fact that all the people have a definite objective and are single-minded in their aim to achieve it. But the reverse process of turning guns into butter, as we all know and as history has taught us, is much more difficult and complex. The reasons are numerous. First, the people no longer have a common aim. A dozen aims are pursued by different sections. It is very hard to obtain uniformity and a common purpose in the minds of the people. Today, common effort has " gone by the board". A second factor is, that the economic structure of this country was dislocated by the war and must remain unbalanced for some time. Thirdly, the threat of inflation hangs over the whole country, and in some degree inflation is becoming manifest. That must necessarily induce caution in the policy that one adopts. Finally, the vast majority of the people, including members of this Parliament, are profoundly ignorant of the facts. Out of this background, three disturbing elements emerge, and they are known to all. The first is widespread industrial unrest, which springs from the dissatisfaction of hundreds of thousands of salary and wage earners with the conditions of their employment and the remuneration that they receive. The problem is not solved by saying that this is a normal aftermath of war, or that it exists with greater virulence in. other countries, particularly in the United States of America. What is required is that the Government shall take positive action, or a series of positive actions, designed to allay and curb discontent. Further, it is the duty of this Parliament and Government to explain the situation to the people in exact terms, so that they will be aware of the realities that have to be faced. The people as a whole are not ignorant and stupid. If told the facts authoritatively, I believe that they will begin to understand what has to be done in order to correct the position. The second disturbing factor is that, throughout the country there is an attitude of go-slow. To what degree this is due to the fact that hundreds of thousands of our young people have been in our fighting forces, I do not know. They were taken from their homes, even from their schools, and pushed into the services, in which they spent two, three, four or five years of their lives. That has had a definite influence on them. A few days ago, I had a conversation with a farmer who has two sons. He regarded one of them as his bright boy, and had great hopes for his future. The other, a dullard, he did not think would make much of his future. The bright boy went to the war, and the dull boy remained at home. The bright boy has returned from war service .completely disorientated, and his father belives that many years will elapse before he will become a really hard-working, decent citizen. Of course, the reason is clear. Many men and women have been kicking their heels in the services in Australia for years. In many cases, they have done little or no work, and no responsibility has been placed upon their shoulders. They have now returned to civilian life, and we expect them, probably wrongly, to settle down to work for which they should have equipped themselves in their earlier years. On the one hand, little incentive is offered to many people to do their best, mainly because of the excessive burden of taxation, and, on the other hand, no penalties are inflicted against those who adopt a go-slow policy. A man, who may not have done his work properly, often walks off the job, knowing that there is another position waiting for him around the next corner. 543 KRI 0 0 SHEEHY, Thomas Mr Sheehy - Is the honorable member worried about full employment being available ? 543 L0G 0 0 RYAN, Rupert Mr RYAN - I am glad to have that reminder. Everybody agrees that full employment is most desirable, but there is one thing better than that, and it is full production. "We have, however, not yet found a way to achieve both. I recall certain remarks of the honorable member for Batman (Mr. Brennan) regarding Communist influence in this country. I have not sufficient time to go deeply into that matter, but we all know that communism feeds on discontent. If we make men and women happy, communism cannot thrive to any serious degree, but so long as people are discontented, the ugly head of communism will raise its head higher and higher and become even uglier than at present. The honorable member for Batman said, in effect, that in a Christian country communism could not make headway, and certainly could not obtain political control. I remind him that communism is in complete control in many countries which are at least as Christian as Australia. I refer, for example, to Hungary and Yugoslavia, where Christian doctrines are adhered to as closely as in this country. If there be any danger of Communists gaining control, the fact that Australia is a Christian country will not protect it. Formerly, the main purpose of the budget was to raise revenue, and the Government is certainly raising a great deal of it. In past years the budget has also had a marked effect on the economic progress of the country. To-day it exercises a profound influence over the morale of everybody in the community. We must consider the budget, not merely as a money-raising policy, but also as a policy which affects the morale of the people. We require & substantial reduction of the burden of taxation. An examination of the budget shows that the Government proposes to reduce the burden by the amount of £3,000,000 a year, which is only 1 per cent, of the total expenditure proposed for this year. Revenue is now very buoyant. Had it not been for the reduction of income tax last year, the revenue would have been up by £25,000,000. Now the Government proposes to add to the reduction of income tax granted last year only the small reduction of indirect tax that will be brought about by concessions in respect of sales tax. This relief amounts to only £9.000,000 for the remainder of the current financial year, or £16,000,000 for a full year. The reduction of customs and excise duties will represent relief to the amount of only £2,500,000, or £4,000,000 for a full year. That is a mere flea-bite compared with the total revenue raised from customs and excise duties. The Treasurer (Mr. Chifley) told us that since the end of the recent world war, taxes had been reduced by £61,000,000, of which £37,000,000 related to income tax, £20,000,000 to sales tax, and £4,000,000 to customs and excise duties. However, since the wai1, the commitments of the Government have been reduced enormously. The strength of our armed forces is down by 400,000 men. The reduction of taxes is out of all proportion to the reduction of our commitments. The financial position of the individual may be improved in one of three ways - first, by increasing wages; secondly, by a reduction of the income tax, a policy advocated by the Opposition; and, thirdly, by a reduction of indirect taxes, which is the method adopted by the Treasurer. What does the reduction of the sales tax amount to ? The Opposition asks for ,a substantial reduction which will provide an incentive to the people to work harder and produce more. The customs and excise duty on petrol has been reduced by a mere one penny a gallon. To the average motorist that represents relief to the amount of only about 6d. a week. Pies and pastry are normally sold at about 4d. a piece, and by reason of the reduction of the sales tax the price will be reduced to 3£d. a piece. Is that likely to improve the morale of the people? The cost of clothing is to come down by the amount of ls. 6d. in the £1, but will that increase the initiative and enterprise of the average man or woman? The actual saving with regard to housing, as a result of the reduction of the sales tax, will be extremely small. In the painting of a five-roomed weatherboard house, the saving will be only about 18s. The present cost of papering a 3-roomed cottage is about £2 5s. a room, and cheap paper would have to be used to keep the cost down to that figure. The saving by virtue of the reduction of the sales tax will be only 15s. Therefore, these concessions are of no practical value. The budget should have been framed in such a way as to encourage people to produce, Abut that has not been done. I believe that the most effective method would have been to reduce Government expenditure. As a matter of interest, I have taken out from the budget a list of figures showing the increased expenditure by various departments. There has been a substantial reduction of defence expenditure, as was only to be expected, but I believe it should have .been greater. The total increase of expenditure by departments other than service departments is no less than £59,000,000. Some of this increase is, as the Treasurer pointed out, due to the transfer of items of expenditure from the war budget to the peace budget, but the fact remains that, far from there being any evidence of a reduction of expenditure, there has 'been a considerable increase of expenditure other than that related to the war. Here is a list of some of the increases : - 1 do not know by how much expenditure has increased on the Department of Information, but the amount to be expended this year is £324,000. We realize the need to maintain some control, and it must be evident that unless expenditure is vigorously pruned taxation must remain high, and the economy of the country remain in its present state of semi-paralysis. Let me cite one example which illustrates our present situation, and points the direction in which we appear to be going. It has to do with housing, in connexion with which the two important factors are the total number of new houses needed, and their cost. It is estimated that the total shortage of houses in Australia is between 300,000 and 400,000. In Victoria, there is a shortage of 50,000 houses, in addition to which 10,000 new houses are needed annually for ordinary replacements. Thus, in a .five-year programme, it would be necessary to build 20,000 houses a year, if all the homeless are to be housed, and if ordinary replacements are to be made. Last year, the Government built 3,500 houses in Victoria, and this year a more ambitious programme is planned, but it still falls far short of what is required. I mention these figures, not because I wish to chastise the Government, but because it is necessary that the facts should be made known. At the present rate of building, a great many persons will still be homeless at the end of the next ten years. We come now to building costs. The cost of a timber-frame five-room house in 1939 was £760. In 1941 it was £980 ; in August, 1945, it was £1,275; and in November, 1945, it was £1,325. The cost of a five-room brick house in September, 1939, was £1,000, whereas now it is £1,820. It is evident, therefore, that building costs have very nearly doubled. This is due to four factors: increased cost of materials, higher labour charges, low efficiency of labour employed, and the large number of hold-ups in building operations. For the last three months I have been trying to get some repairs done on my farm. Workmen have been there off and on for the whole of that time, but work is constantly being held up while they wait for materials. This increases the cost enormously, because the men are waiting around so much, and interest charges on borrowed money are going on all the time. There is also a serious loss of time in rushing about from one place or another looking for materials. The net effect is to make the cost of building prohibitive. I know many persons who are anxious to build, but they cannot obtain the money to build at the present exorbitant cost. Thus, very few private individuals can build at all. Of course, the effect of high costs must be reflected in high rents. For the timber house costing £3,325, the economic rent is between 37s. 6d. and £2 a week. What ordinary wage-earner can afford to pay £2 a. week in rent out of his pay envelope? It is generally recognized that the rent of a house should not exceed 20 per cent, of the weekly income of the occupant. Thus, we are building houses which no one can afford to buy, and in which no one can afford to live. The Government has various proposals for meeting the situation. One is to make loans available to potential home-builders, but, as the right honorable member for Darling Downs (Mr. Fadden) pointed out, it appears to ' be charging a much higher interest rate for this money than is justified. 545 L0X 0 0 LEMMON, Nelson Mr Lemmon - What the right honorable member for Darling Downs said was not quite true. 545 L0G UAP; LP from 1944 0 0 RYAN, Rupert Mr RYAN - That is beside the point. The fact is that the people are nervous about using either their own or borrowed money to build houses. The Government has a plan under which it subsidizes rents payable by persons in receipt of incomes at or below the basic wage, but the country cannot afford to continue indefinitely the Government's policy of providing subsidies. The whole community cannot live by taking in one another's washing. The third alternative is to increase the basic wage. But the immediate effect of an increase of the basic wage would be higher living costs. And so we get back to the position that houses are costing more than people can afford to pay either to purchase or to rent them. The only solution of this problem is greater production and increased efficiency. It is not right that a house which could be bought, for £760 in 1939 should cost £1,325 to-day. The Government must take steps to restore the incentive to efficiency and greater production. I strongly support the amendment of the Leader of the Opposition. 545 KZJ Reid 0 0 LANG, John Mr LANG .- The budget before us is inherently dishonest, because it is not what it purports to be. A budget is supposed to be a statement of the revenue and expenditure of the Government for the ensuing year. It is the result of painstaking work on the part of Treasury officials, who take into account the policy of the government of the day when estimating the revenue and expenditure for the year. The Parliament can utterly disregard the figures on the revenue side of the budget before us, because the Treasurer (Mr. Chifley) has announced that the Government proposes to review the financial position month by month with a view to seeing whether further reductions of taxes can be made. Fancy a Treasurer submitting a budget for a period of twelve months, and then telling the Parliament that it need not take much notice of the figures because the Government intends to review revenue and expenditure from month to month ! Such a declaration entirely destroys the value of the figures before us. Why cannot the Government prepare ah estimate of revenue and expenditure for a full period of twelve months, and stand by its estimate? That was the universal practice of all governments in Australia until it was departed from in connexion with this budget. I have looked for an explanation of this change of policy. One possible explanation may be that the officials of the Commonwealth Treasury are not so competent as are State treasury officials and that, because they cannot estimate with any degree of accuracy the income of the Government for a period of twelve months, they propose to adopt a hand-to-mouth policy and will review revenue and expenditure month by month. Although that may be advanced as an explanation, I do not think that it is the reason. I do not believe that the officials of the Commonwealth Treasury are any less efficient or competent than are the treasury officials of any other government in Australia. Another possible explanation is that the Government does not trust its officers and, accordingly has decided to watch the progress of the country's finances from day to day. I cannot accept that view, and so I am forced to the conclusion that the only explanation is that the Government wants to continue its penalizing and restrictive taxes for some undisclosed purpose. Its promise to review the country's finances from month to month is merely an attempt to forestall criticism of the budget. Another feature of the budget which, to my mind, is politically indecent, is the Government's claim that it proposes to reduce indirect taxation by £12,000,000 a year. The Treasurer says that that result will be achieved by reductions of sales tax, petrol tax, and customs duties. All those goods that are mentioned in the making of a present to the people of a reduction of £12,000,000 will come into fuller and greater supply before the end of the current financial year. More people will be released to industry and to the pool of consumers, duties will be reduced, and more goods will be sold; so that finally, the amount of money extracted from the pockets of the people at the lower rates to be applied in respect of customs duties, sales tax and petrol tax during this financial year is likely - to increase by more than the £12,000,000 being remitted this year. The outstanding feature in. the Treasurer's presentation of the accounts is his statement that taxes representing millions of pounds have been rebated, and that from month to month - and this is the indecency of it - there may be greater reductions. As a matter of fact, nothing at all has been rebated and I assert that, by the 30th June next, no further benefits will come out of this budget. As the Government claims to be a Labour government it is well to look at the budget from the Labour view-point to ascertain whether the Ministry has decided to mend its ways and turn a little, if only a little, towards the platform of the Labour party. The outstanding subject for discussion and consideration in the budget before us is admitted by all to be taxation. The Labour party believes in the principle of a tax on incomes because that is the only tax which can be apportioned according to the wealth of the taxpayer. Labour's platform is specific as to how that tax should be applied. Honorable members on the Government benches well know the platform to which each one of them is pledged, which each of them promised he would do his best, in and out of season, to implement. In that platform, under the heading " Taxation and Finance ", I find these words - Income Tax. - Income from personal exertion of less than £300 to be exempt from income tax. Deduction from taxable incomes of £100 for a taxpayer's wife and £60 for each child or other person wholly dependent on the taxpayer. I say to this Parliament that if that platform were implemented, and that if the taxation law of this country to-day were based upon that principle, there would be no absenteeism in industry and there would be taken from the mouths of the deadliest enemies of Australia, the members of the Communist party, the catchcry that there should be an increase of £1 a week in the basic wage. If Labour's platform were implemented there would be an increase in the amount of money going into most homes, not of £1 a week, but of very much more, and this could, be achieved without increasing the cost of production. If Labour's platform were given effect, every working man and woman earning up to £6 a week would be able to take that money home free from the clutches of the tax-gatherer; the principal bread-winner in the family would have take-home money of £8 a week, and those doing the greatest service of all to this nation of ours, those with a wife and five children, would be free from the clutches of the tax-gatherer until they had £14 clear a week in their homes. That would stop industrial unrest in this country and would see the end of stop-work meetings and absenteeism. I ask honorable members how much, if any, of Labour's platform is incorporated in the budget now before us? The answer is, none of it, not one iota, not a line, not a word. As a matter of fact the taxation proposals of this Government bear less resemblance to the Labour party's platform than those of any other government in the history of the Commonwealth. I challenge any person to compare the budgets brought down by previous governments since the inception of federation with the one now before us. If we put all those budgets side by side with the present budget, and compare them with the Labour party's platform, the one that will look least like a Labour budget will be that of the Chifley Government. Speaking in the language of our income tax to-day, all the exemptions, as they are called, are " scientific They are so scientific that no person who pays tax understands them; and I doubt whether any officer in the Taxation Department understands them. All of these exemptions are called diminishing exemptions. There is nothing scientific about the way in which they disappear into thin air. They disappear altogether. For all practical purposes, they are not there at all; because everybody who earns any income to-day is subject to tax. Take the railway man. Take some of my constituents off the footplate. They work for 45 years in the service. They have deducted from their pay envelope every pay day a certain amount of money as contributions to their superannuation fund. They can afford only a little. In return the glorious payment of £3 a week is made to a man and his wife who have struggled to get that benefit by paying for it for 45 years, the contribution being taken out of the man's wages. But before that man receives that £3 a week, the Government steps in and takes 3s. tax out of it. Nobody can escape; there is no exemption at all. Everybody is caught in the net. During the war, and during the depression, it was a fashionable thing to say - I use the word advisedly - that everybody should bear a share in carrying the burden. One heard it off every platform, and read it in every newspaper. It was just as fashionable as " balanced budgets ". It was said that everybody- should be taxed in order to carry on the services of the country. Nobody should be exempt from tax. It was fashionable to say that; and, because of that, it was thought to be a good gesture to abolish exemptions. That is what that fashionable word led to. But, to-day, there is neither a war nor a depression, so why is it still being done? The only thing that is plentiful to-day is money. Everything else in the world is hard to get. It is almost im possible to get food. You cannot get clothing; and you have no hope of getting a house unless you happen to be an alien. You have no hope at all. Then, why not these exemptions? Why have they been abolished? Why not restore them? I find that at the 30th June,- 1944, the latest date for which figures are available to me, there were 4S7,649 taxpayers earning less than £250 a year, and those taxpayers paid in tax the sum of £4,759,644. Putting it roughly, they paid less than £5,000,000 tax. I ask why this class of taxpayer is included. Nobody is going to say that so small a sum as £5,000,000 is of any importance in this budget. Nobody can convince me that a paltry £5,000,000 is of any importance in the budget now before the committee. The present arrears of taxes are not arrears of the toilers, the salary or wage earners, because tax is taken out of their pay before they get their hands on their own money. I make bold to say that if the millions of pounds of arrears of taxes were collected, and the Taxation Department were brought up to date, £50,000,000 of taxes could be dropped from the present budget and not be missed. Let the Government collect the present arrears of taxes, and make its Taxation Department efficient. Bring that department up to date, and £50,000,000 will not be missed from this budget It seems to me that the small taxpayer and the small income earner are being kept subject to income tax for one reason only. It is because this Government, this so-called Labour Government, subscribes to the principle that every income earner, regardless of the amount of income he earns, should be made a taxpayer. The Government subscribes to that principle. If it does not subscribe to it, why does it persist with it? The Government says that everybody who earns income must pay tax. That is not the Labour party's idea of apportioning the tax burden. What the Government is doing to-day is the direct opposite of its own platform, and is quite opposed to every Labour principle. The Government says - it is a common statement which I have heard clown the years - that it is the duty of every citizen to contribute to the revenues of the State. That is the underlying principle of this budget. But over and above that, the first duty which devolves upon every man in the community as a citizen, the first duty of all, is to provide adequately for his own family. But he cannot do that because this terrible anti-Labour taxation prevents him. Let us look at it as people see it and feel it: a man on £6 a week has barely enough money to feed and clothe his family, and he can pay his taxation only if he compels his family to go short df vital items of food and clothing. I point out in the interests of our country that if a child goes without food and clothing that deprivation leaves a mark on that child throughout its life. Everybody knows that anything young improperly fed and undernourished never properly develops. The mark of undernourishment in childhood is carried to the grave- 548 KRI 0 0 SHEEHY, Thomas Mr Sheehy - Why did the honorable member sign the Premiers plan ? 548 KZJ 0 0 LANG, John Mr LANG - The Government is marking children with the stamp of undernourishment. There is no use in trying to disfigure my speech with disorderly remarks. If many things on which the Government proposes to expend about a quarter of the revenue this year were abolished, the Commonwealth and the people of the Commonwealth would he better off. This taxation comes off the breakfast table. It takes the food of the people. The Government takes taxation -from the people with low incomes. Ministers should be careful how they spend the money that is extracted from the people by the means that are used to-day. The payment of this income tax is a real hardship, and the purpose, or purposes, for which it is spent should be carefully watched. We should see that in the spending of the money there is sacrifice equal to the sacrifice made in its contribution. But many Ministers do not bother about sacrifices. Labour Ministers should refuse to take this money. They should refuse to collect it. They should insist upon people on the lower incomes being exempt from the tax. Taney a Labour government placing on the Arbitration Court Bench judges to discover what is the least amount that should be paid to a worker and then, having leaf nt what is the least possible amount a wage-earner should receive, coming along and reducing it arbitrarily by an extraordinary amount of money every week ! From the Treasurer's many statements, it seems that the Government fears that if it does not keep on this penal tax it will not have enough revenue. I cannot imagine- any other reason. It must be fear that it will not have enough money; otherwise, surely, it would never maintain excessive taxes. It is afraid to take a risk. I put it that way, as high as I can put it. It is afraid to take the risk that it will not have enough revenue. If there is any risk, I say to the Government, " Take it ! Be bold ! " Surely it is worth while taking the risk to implement the Labour party's platform. The Labour party made great sacrifices to establish that platform. It made great sacrifices in carrying it out. Risks were taken by Labour men then. So what about this Government taking a little risk? Let it introduce legislation now to exempt from tax incomes up to £300 a year. That goes for every one in the community. Labour legislation is not class legislation. Every one in the community, right up to millionaires, would have £300 of their income exempt from income tax. I have heard some honorable members say that they are taxed 19s. 6d. in £1. They would benefit in the same way as other people. My proposal is for a complete exemption from tax of £300 of income. It is not a scientific exemption, it is not a disappearing one. It is a part of the Labour party's platform that there should be a plain, straightforward, unvarnished exemption from income tax of incomes from personal exertion of up to £300. The platform says, " £300 for every one and an additional £100 for a married man and his wife and an additional £60 for every dependant ", and that does not refer only to minors. Mark that word. A dependant is not necessarily a child. The Labour party's platform says that some relief from taxation should be given to taxpayers in respect of every one dependent upon them. Misfortune is a common visitor to the homes of the people. A mother dies and the eldest girl sacrifices everything to keep the home for her father and her little brothers and sisters. She is dependent on her father. 549 JYV 0 0 FULLER, Arthur Mr Fuller - In what year did the Labour party make that a plank of its platform ? 549 KZJ 0 0 LANG, John Mr LANG - What I have said is fact. I defy any Government supporter to deny it. Let any supporter of the Government rise in his place and say that the Labour party's platform in 1942 and to-day does not provide for the exemption from income tax that I have specified. Let him say he did not sign the pledge, or confess that he lacks the courage to carry out that platform. If it should be found that the expenditure is too much for the revenue, I say, " You must not take it out of the basic wage! Don't play around with the small incomes ". If the revenues are not enough to cope with the proposed expenditure, there are other ways of meeting the situation. Let the Government use the pruning knife and cut off all the dead wood that has intruded into the Estimates since the war began. The Government should have courage. If that were done, expenditure would soon be brought down to the level of revenue. If the Government were to act like a Labour government, the workers, the people as a whole, and the Commonwealth itself would be a lot better off. Labour's policy has always envisaged retiring allowances for all citizens. Under our present pension scheme, any person wishing to qualify for a pension, must plead poverty. That is the sole qualification. This system is but little removed from the idea of the workhouse. The only distinction is that with old-age pensions the poverty is hidden in the home instead of being displayed in the workhouse. That is the difference between the manner in which the people of this country are being treated to-day, and the manner in which they were treated in pre-war days. 549 6V4 0 0 DALY, Fred Mr Daly - What about the means test that was applied to the honorable member's child endowment scheme in New South Wales? 549 KZJ 0 0 LANG, John Mr LANG - To-day, there are nearly 600,000 Australians above the age of 65 years. Of these, 250,000 receive old-age pensions, and an additional 58,000 receive invalid pensions, imposing an aggregate pensions bill of £21,800,000 a year. If the means test were abolished and every person above the age of 65 years were eligible for a national retiring allowance, there would be an additional 350,000 potential recipients, and the added cost to the Commonwealth would be £20,000,000. If we can provide £537,000,000 a year for war purposes, surely we can provide £20,000,000 a year for our aged citizens. I say that the means test is a national stigma which could be removed for the payment of an additional £20,000,000 a year. The third Labour proposal that I shall mention is the payment of child endowment in respect of all children in a family. That too is a vital plank of the Labour party's platform. .Some people ask me flippantly, " What about the child endowment scheme that you introduced in New South Wales? " 549 6V4 0 0 DALY, Fred Mr Daly - The honorable member imposed the means test. 549 KZJ 0 0 LANG, John Mr LANG - You were not in the country at that time, Mr. Falstein, and you do not know. 549 KEU 0 0 FALSTEIN, Sydney Mr Falstein - I rise to order. The honorable member for Reid (Mr. Lang) has made an insulting reference to me, without any provocation whatever. Interjections made in the course of the honorable member's speech have not come from me. I have listened to him without interruption and I ask him to withdraw his insulting insinuation. 549 10000 0 0 CLARK, Joseph The CHAIRMAN (Mr Clark - I have not heard the honorable member for Reid make any unparliamentary remark. If the honorable member for Watson objects to anything that has been said, or wishes to make a personal explanation, he may do so when the honorable member for Reid has resumed his seat. 549 KEU 0 0 FALSTEIN, Sydney Mr Falstein - I again rise to order. The honorable member for Reid was out of order first in referring to me by name instead of by my constituency, and again in making a remark that I interpret as being grossly insulting to me. 549 10000 0 0 CHAIRMAN, The The CHAIRMAN - I think that the reference by the honorable member for Reid to the name of the honorable member for Watson instead of to his constituency can be regarded leniently, because he is a new member. If the honorable member for Watson regards anything that has been said by the honorable member for Reid as personally offensive, the honorable member for Reid will have to withdraw the remark to which objection is taken. 550 KEU 0 0 FALSTEIN, Sydney Mr Falstein - I ask that it be withdrawn. 550 009MC 0 0 HOLT, Harold Mr Holt - What was offensive? 550 10000 0 0 CHAIRMAN, The The CHAIRMAN - Order ! The honorable member for Reid has exhausted his time. Motion (by Mr. Francis) negatived - That the honorable member for Reid be granted an extension of time. 550 JWT Moreton 0 0 FRANCIS, Josiah Mr FRANCIS .- I regret that the honorable member for Reid (Mr. Lang) was not permitted to continue his remarks. 550 KZJ 0 0 LANG, John Mr Lang - I rise to order. Part of the time allowed for my speech was taken up by other honorable members. I submit that when an honorable member's speech is interrupted in this way, allowance should be made for the time taken by the interruptions. 550 10000 0 0 CHAIRMAN, The The CHAIRMAN - The practice in this Parliament has always been to regard the time occupied by an honorable member's speech as inclusive of any interruptions. Actually, the honorable member for Reid's time had expired about one and a half minutes before I ordered him to resume his seat. 550 JTF 0 0 BURKE, Thomas Mr Burke - I rise to order. We have listened to an attack on the Government - obviously an Opposition attack - and I submit that after two Opposition members have spoken in succession, a Government supporter should be given an opportunity to reply. 550 10000 0 0 CHAIRMAN, The The CHAIRMAN - Order ! The Chair will control the committee. It has been the practice in this chamber for the Chairman to give the call to the right of the Chair, and, alternately to the left of the Chair. In accordance with the established practice, I have called the honorable member for Moreton. The honorable member for Perth will receive the next call. 550 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - I hope, in view of the earlier interruptions, that the period allotted to me for my speech will begin from now. I did not agree with some portions of the speech of the honorable member for Lang- 550 JVJ 0 0 MULCAHY, Daniel Mr Mulcahy - I rise to order. As I have not taken part in this debate, I do not know why the honorable member for Moreton should refer to my speech. 550 10000 0 0 CHAIRMAN, The The CHAIRMAN - I think that the reference to the " honorable member for Lang " was a slip of the tongue on the part of the honorable member for Moreton. 550 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - Before I reply to some of the remarks of the honorable member for Reid (Mr. Lang), I desire to refer to the " punch drunk " condition of honorable members opposite. During the speech of the honorable member for Reid, they were like dumb, driven cattle. They were stunned beyond expression. The only feeble interjections which were made, were spoken in a cowardly, nervous, fearful voice. So thunder-struck were they that the honorable member for Denison (Dr. Gaha) moved anxiously among them, ready to administer medical aid if their rising blood-pressure seemed likely to become serious. Honorable members opposite must now realize that this Government's term of office will be brief and, in the circumstances, I can understand their anxiety. The honorable member for Reid began his speech with the words " This is a dishonest budget, coming from a so-called Labour government ". That caustic statement did not draw an interjection from honorable members opposite. But they were to grow paler and paler as he proceeded. His next remark was " This is a politically indecent budget ". Still no protest came from honorable members opposite. Without a shadow of a doubt, this " big, bad man " of the New South Wales Labour party has proved to the country how hopeless, incompetent and futile is the so-called Labour party in the Commonwealth Parliament. This budget does not either encourage people to increase the production of goods, or reduce the present heavy rates of taxation. Indeed, the Labour Government, so-called, will -not abide by the policy of the Labour party. The Leader of the Opposition (Mr. Menzies) has submitted an amendment which, if carried, will be an instruction to the Government to reduce taxes. As the honorable member for Reid spoke strongly in favour of a reduction of taxes, I believe that he will support the amendment. The honorable member for Reid also pointed out the futility of the Government's proposals to reduce indirect taxation. The remissions will not benefit the wage-earner, or encourage people to produce more goods. Neither directly or indirectly does this budget offer any hope ro the community. Had the Labour party presented this budget to the Parliament before the last election, it would not have been returned. The budget shows clearly that the Labour Government is indifferent to the necessity for stimulating production and reducing taxation. It lacks an appreciation of national problems. As the honorable member for Reid declared, the budget is obstinate, unimaginative and extremely conservative. The estimate of revenue for the current financial year is unduly cautious. Whilst the whole budget is a strong argument for a substantial reduction of income tax and company tax, it unfortunately does not contain any proposal for a reduction of direct taxation. According to the estimate of the Treasurer (Mr. Chifley), remissions of indirect taxation will amount to £11,000,000. The principal concession will be reductions of sales tax, totalling £9,000,000, on such commodities ns meat pies, meat pasties, sausage rolls, vegetable salads, soups, soup cubes, sauces, pickles and vinegar. But remissions of sales tax on those items will not enable the housewife to recast her domestic budget. Yet honorable members opposite are asked to support these proposals, as if the remissions will benefit wage-earners and stimulate production. Sales tax on articles of clothing will be reduced l-.v 7i per cent. About two months ago, Mr. Colin Clark, Queensland Government Statistician, stated that the cost of clothing in Australia had risen by 74 per cent, since 1939. In the circumstances, what relief will this remission of sales tax afford to the people? It is only a small fraction of the relief that should have been granted. Reductions of customs and excise which should have been made long ago, will amount to £2,500,000 per annum. The real test of the advantage of these proposals is: What will be their effect on real wages? Let us consider the circumstances of the man in receipt of an income of £7 a week. He will still be required to pay income tax of £1 2s. a week. The remissions of sales tax on jams, sauces and pickles will not substantially benefit him. They will not compensate him for the retention of the high rate of income tax on his earnings. To the wage-earner, the proposed reduction of indirect taxation is valueless. One of the principal causes of industrial ^unrest in Australia is the high rate of income tax which is imposed on workers in industry. In applications to industrial tribunals and in negotiations between employers and employees, the representatives of the trade unions point out that one of the causes of industrial turmoil is the high taxation. Apparently, the Labour party is unconcerned about the continual industrial unrest. This budget will not hasten the dawn of the " golden era " to which the Prime Minister referred recently. As a basic principle of budget planning, the Government should reduce taxation in order to increase production and restore the nation to an even keel. I say advisedly that until production increases we shall not be able to put an end to the industrial troubles from which we now suffer. Increased production offers the key to real prosperity and is the only means of avoiding inflation. Exorbitant and strangling taxes hamper production, and this budget offers no prospect of relief. The proposed indirect tax cuts give very cold comfort when compared with the 20 per cent, tax reduction proposed by the Leader of the Opposition (Mr. Menzies) during the election campaign. Either the plan of the Leader of the Opposition or that of the Leader of the Australian Country party (Mr. Fadden) would have granted substantial relief to people in low income groups, but those schemes have, for the time being, been rejected. The reduction of income tax proposed by the Opposition would have given to wage-earners substantial increases of their actual incomes. The consequent release of greater purchasing power in the community would have been a strong incentive to increase production. The Treasurer expects industry to intensify its production efforts so that wage-earners may have the security of full employment and improved standards of living, but he withholds from industry the best stimulus that could be given to it, namely, relief from the crushing burden of direct taxation. A substantial reduction of income tax rates alone would provide the incentive to increase production which is so urgently required. Defence and other expenditure arising from the war, including the cost of the re-establishment and repatriation of ex-service men and women, will be £157,000,000 less than last year. Demobilization has released 520,000 men and women from the armed services. Many of these people have been reabsorbed into civil industry and have become taxpayers again. The substantial reduction of direct taxation which should have been provided in the budget would have been offset considerably by the additional revenue derived from these people. The Government is attacking its problems in a feeble way. Obviously, one of its main duties is to fulfil the promises that were made to the men and women of our fighting services during the war. It has neglected that duty. For instance, its vocational training programme for the re-establishment of ex-service men and women is woefully inadequate. A committee of six ex-soldier members of the House of Representatives and the Senate - I was one of them - urged the Government to provide vocational training facilities for all members of the services who had been enlisted under the age of 22 years. It laid down many principles for the guidance of the Government in rehabilitating ex-servicemen. Paragraph 23 of the committee's second report stated - The committee considers that training should be available not only for the classes eligible in 1918, viz. - those incapacitated by war service to the extent of being unable to follow their pre-waroccupations, and those who enlisted at an early age. but also for the following classes : - Those who have commenced a course of instruction under a. Service scheme of education or training, with a view to improving their earning capacity, and have shown that they have the ability to complete the course. Those whose pre-war occupations were not of a skilled character, or who were skilled in certain directions now less in demand, and who have shown aptitude for and are otherwise deserving of training for other occupations. The Government agreed to accept the recommendation of this non-party committee, but has failed to implement it. It has rejected the applications for training made by thousands of men and women on the ground that they were not formerly employed in the work for which they now seek training. This flimsy excuse is entirely contrary to the recommendation of the committee. The Government has shown beyond any shadow of doubt that it is not concerned about the welfare of ex-servicemen. The committee recommended that men who had begun vocational training in a service organization during the war should be allowed to continue such training, and that, if their pre-war occupations had not been of a skilled character, they should be entitled to special training for skilled work. Another recommendation was that, if an ex-serviceman's pre-enlistment occupation had been skilled in some calling that was no longer in demand, he should be entitled to vocational training. Other qualifications for training were also recommended by the committee. The Government is over-riding those recommendations and denying justice to the men concerned. In this chamber the other day, I asked the Minister for Repatriation how many ex-servicemen had applied for full-time vocational training and how many were, in fact, undergoing such training. The answer showed that the applications of 74,000 men had been approved, but that only 20,000 men were being trained. Therefore, 54,000 men whose applications have been approved are not being trained. Clearly, the Government is not making every effort possible to train these young men who are anxious to obtain employment as skilled tradesmen. Many Australians entered the armed forcesat the age of eighteen years. The situation was different from that which operated in World War I., when men under the age of nineteen years were not allowed to enlist for operational service. Young men who wore called up or who enlisted for service in "World War II. at the age of eighteen years had no chance of obtaining permanent employment or entering a skilled trade before entering the forces. The whole community was topsy-turvy when they left their schools and colleges. Every young man who applies should be given vocational training. It is ridiculous that 54,000 men who are eligible for training should still be waiting to start their -courses. The Government should build up an organization adequate to meet the demand. About two years ago, I pointed out that the Government had inadequate facilities for training the large numbers of men who would be released when demobilization began. I had the support of many other honorable members at the time. We referred to the evidence given before the committee which I have mentioned, by State Directors of Education and other authorities, which showed that training facilities throughout Australia were seriously limited. The Government agreed to examine the situation and, on our suggestion, undertook to make use of munitions-factory buildings that would become vacant when the war ended. The Government has done nothing to honour that undertaking. I appeal to it now to review the situation. I ask it to appoint another committee of ex-soldiers from this Parliament who can advise it as to the best way of providing training for the 54,000 men already on the waiting list. Ex-servicemen have told me that it is not worthwhile for them to apply, for vocational training, because they know that tens of thousands of others are still waiting. The Government is so futile that they prefer to shift for themselves, even though they may find themselves in a "blind alley" for the time being. I urge the Government to ensure that adequate facilities shall be provided for the vocational training of ex-service men and women. In regard to war service homes, also, the Government has not been helpful. Recently, I asked a series of questions, and was told that seven war service homes had been built in 1941-42, six in 1942-43, none in 1943-44, eight in 1944-45, and 61 in 1945-46 up to February. I have asked the Minister what additional homes have been built during this year, but so far have been told only that the information will be obtained, although the question has been on the notice-paper for three and a half weeks. 553 L0X 0 0 LEMMON, Nelson Mr Lemmon - I shall have the information in another 24 hours. 553 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - Because of the importance of the matter, the Minister should have placed on his table a daily or at least a weekly return of the houses that have been and are being built. Failure to answer my question in three and a half weeks is evidence of neglect. It is useless for the Minister to say that there is a shortage of materials. When the matter wa3 raised some time ago, the former Minister for Works and Housing (Mr. Lazzarini) said that as soon as men had been released from the forces, unlimited quantities of material would be available. Either he or the present Minister has fallen down on the job. 553 L0X 0 0 LEMMON, Nelson Mr Lemmon - Of the houses that are being built under the Commonwealth and State housing scheme, 60 per cent, are allotted to ex-servicemen. 553 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - On the 16th July, 1945, the then Minister for Works and Housing announced that, subject to anticipated releases from the services, the supplies of materials and fittings available in every State would be sufficient to meet all demands. In a further statement, the Minister made it clear that that advice had been tendered to him by his officers. At that time, the Director of War Organization of Industry, reviewing the position in relation to bricks, said that, from the information available, it was considered that the supplies of bricks would be satisfactory. If the present rate of construction be maintained, those who are to-day seeking houses will not have their needs satisfied for another 61 years. 553 L0X 0 0 LEMMON, Nelson Mr Lemmon - The rate of house construction in Australia is higher to-day than it has ever been previously in the history of this country. 553 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - If it were not, I should be more than disgusted. But the rate of construction must be increased considerably if we are to overcome the present shortage of houses. The task has not been tackled as it should have been. Those responsible for the building of war service homes as well as homes for other citizens are falling down on the job. The Minister will recall that in 1943 and 1944 the Government promised that there would be homes for everybody as soon as the war was over. Yet, in: mediately the fighting ceased, the Government "passed the buck " to the States. But it cannot escape from the' obligation imposed on it. Under the Constitution, the Commonwealth may make to the States grants in aid for the furtherance of all sorts of proposals. Having made such grants, it has the obligation of ensuring that the people shall be provided expeditiously with the homes that they need. It should send out inspectors to insist that the homes that are being built shall be of the types that are desired. The Sydney Daily Telegraph, of the 22nd November, published this observation by the president of the Town Planning Association of New South "Wales - The State Housing Commission was creating slums and plague spots throughout Sydney. He went on to say - The commission's group housing scheme was crowding homes on to estates in a " dreary, drab and featureless" manner. It was using land obviously needed for agriculture or business. The Government is losing heavily on its housing projects, but it will make up in taxation what it loses in rents. The longer this orgy of waste and folly continues the heavier the bill will be. If that is a true picture of the position, this Parliament should not continue to appropriate money for the construction of houses by the States. The Minister's duty is, above all else, to ensure that the funds which this Parliament appropriates for house construction shall be expended immediately and properly. The extract continues - The State Housing Commission has entirely bungled the job it was given. Not only has the commission failed to ease the acute housing shortage by its own muddled efforts, but its interference has crippled private enterprise. If time permitted, I could read a dozen similar extracts. The Government can derive no satisfaction from the housing position as it exists to-day. During the last eighteen months it has had an " open go ", untrammelled by war. The Parliament has not shown any hesitancy in voting whatever amount the Government needed ; if it asked for £10,000,000, that amount was made available to it. If it then needed a further £15,000,000, that sum was appropriated. The housing of our people is one of the most urgent of the problems with which we are confronted to-day. The Government refuses to reduce taxes. As the honorable member for Reid (Mr. Lang) has said, it is taking food from the breakfast tables of young people, and is not providing the homes that are needed. Its record is a sorry one. I ask the Minister to apply corrective measures. This House has voted substantial sums for the settlement of ex-servicemen on the land. The latest intimation by the Minister in charge of this matter was that no ex-servicemen had yet been settled on the land. Compare that with New Zealand, where tens of thousands of ex-servicemen have been settled on the land, those proposing to engage in pastoral pursuits receiving an advance up to £6,500 and those intending to follow the occupation of dairying being given an advance up to £5,000. The Commonwealth has made grants to the States for this purpose. Its obligation is, not to wait indefinitely for the States to take action, but to press them to push ahead quickly with the settlement of ex-servicemen. Many ex-servicemen are anxiously waiting for the Government to carry out its promise to provide them with land on which they can take up rural pursuits. The Government appears to be satisfied merely to have obtained parliamentary approval of certain expenditure for the land settlement of ex-servicemen, leaving the whole of the responsibility for the implementation of the scheme to the States. However, I contend that the Government should ensure that the money is being expended promptly and properly in the acquisition of land for ex-servicemen and in placing them upon it. I say without hesitation that in this matter the Government has fallen down on its job. As the honorable member for Flinders (Mr. Ryan) has pointed out, a substantial increase of expenditure has occurred in respect of every government department. The honorable member indicated a total increase of £59,000,000, and, in view of the fact that the Government is not prepared to reduce taxes substantially, the people will surely object to that greater expenditure. Considerable economies could be effected in all of the swollen war-time departments and also in the other departments. The bureaucrats who were appointed during the war period are still with us, and drastic reductions of expenditure are needed. Take, for instance, the Department of Information. 555 BV8 ALP 0 0 CALWELL, Arthur Mr CALWELL - A good department ! 555 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - The Minister will find it difficult to reconcile that interjection with some of his own remarks concerning the department which he now administers. I refer him to Hansard of the 3rd and 41b June, 1942, volume 171, page 2147. Speaking on the Supply Bill (No. 1) 1942-43, as the honorable member for Melbourne, the Minister said - We are asked to approve of the appropriation of £50,000 for the Department of Information. If ever there was a department that ought to be abolished, it is that department. 555 BV8 0 0 CALWELL, Arthur Mr Calwell - That was said before I became a Minister. 555 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - Yes; the Minister tells us now that it is a valuable department. Apparently it is not to be abolished, because expenditure is still being incurred upon it at the rate of about £300,000 a year. Continuing, the Minister said - The money is being raised by all sorts of methods that are obnoxious to me, such as sales tax and various other forms of indirect taxation, which hear most heavily upon the working class. The Department of Information was established in 1939 as a war-time activity, and the annual expenditure then was £43,787. A clear undertaking was given that the department was formed for war purposes only. It was required in the main to supply counter propaganda to that put out by Radio Tokio, Radio Saigon, and other enemy broadcasting stations in the Pacific region. As soon as the Minister for Information assumed charge of the department, its annual cost increased from £43,787 to £198,624. In 1944-45 the annual expenditure totalled £297,802 ; in 1945-46 the department cost £286,751; and for 1946-47 the expenditure is esti mated at £337,600. Since the establishment of the department in 1939-40, the annual cost has increased by £293,813. 555 KDA 0 0 DUTHIE, Gilbert Mr Duthie - Does not the honorable member wish to put Australia on the map? 555 JWT 0 0 FRANCIS, Josiah Mr FRANCIS - There is no need for this department at all. Its work could be carried out by a branch of the Prime Minister's Department. Where are the " hidden reserves " of uncollected income tax, totalling £92,000,000, which, according to a reply given to the Leader of the Australian Country party (Mr. Fadden) on the 16th July last, consists of £42,000,000 of assessed but uncollected tax, and £50,000,000 of unassessed tax? If all that revenue were collected, substantial tax reductions could be made. Why is that source of revenue not tapped for the purpose of effecting the reductions of tax for which the Opposition and the honorable member for Reid (Mr. Lang) have pressed ? Time does not permit me to mention all of the extravagant actions of the Government, but I have drawn attention to some of them. It is clear that the concessions to be made to the taxpayers are far too meagre. The Treasurer estimates that the revenue for the present year will be only £4,000,000 less than it was last year, despite the fact that the estimated cost of defence and allied services for 1946-47 shows a reduction of £201,000,000. The time is long overdue when we should have an indication from the Government of the reason for the heavy expenditure on defence, in view of the fact that we have no army in Australia and practically no defence organization. Four members of the Ministry are without departments. The Minister for the Army (Mr. Chambers) has to go to Japan to see the Australian Army. No troops are being trained in Australia, except a handful of reinforcements for the Australian contribution to the British Occupation Force in Japan. We have an ever dwindling air force, and our naval organization is so futile that the Minister for the Navy (Mr. Riordan) tells us that it cannot capture even floating mines. What is our defence organization, and why have the total defence and post-war charges for the current year been set down at £221,000,000? What is the defence policy of the Government? We are asked to vote money for defence, and Ave are entitled to be given information as to how the Government propses to expend this money. Or is the Government just asking Parliament to vote a blank cheque? I press the Government to indicate clearly the features of its defence policy. The Treasurer estimates a decrease of £4,000,000 in receipts for the current financial year; but sufficient evidence is available to show that his estimate is likely to be exceeded. With the consent of honorable members, I incorporate in Ilansard the following table which compares the Treasurer's estimate with actual receipts during the last three financial years - The budget does not propound any comprehensive scheme for the assistance of primary producers. In my view, water conservation and irrigation should be given No. 1 priority in any proposals designed to assist primary industries during the post-war period. Until that problem is tackled effectively, the Government will not be justified in expending millions of pounds on such projects as the standardization of railway gauges. First priority must be given to schemes to assist the States to increase production of food- stuffs. To-day, Australia is failing to honour its promise to supply foodstuffs to Great Britain which is passing through an extraordinarily difficult period. 556 10000 0 0 CHAIRMAN, The The CHAIRMAN - The honorable member has exhausted his time. 556 KEU 0 0 FALSTEIN, Sydney Mr Falstein - I rise to a personal explanation. This afternoon the honorable member for Reid (Mr. Lang), towards the end of his speech, and in answer to repeated interjections by the honorable member for Martin (Mr. Daly), made a slighting reference to me. He said that certain legislation which he introduced in the New South Wales Parliament, when he was Premier of that State, had been introduced before I came to this country. I now make it clear to honorable members, particularly the honorable member for Reid, who has just been elected to this Parliament, that I was born at Coffs Harbour, on the north coast of New South Wales. Apart from a short stay in New Zealand in 1937-38, the only time I was out of Australia was when I was engaged on flying operations during the war. The honorable member's remarks this afternoon give the lie direct to his claim to be sincere in his attack upon the Government, because the intolerance of his statement when he was caught off his guard is the kind of thing against which the Labour party has set its face. 556 10000 0 0 CHAIRMAN, The The CHAIRMAN - Order t The honorable member is not entitled to debate the matter. He may simply explain in what way he has been .misrepresented. 556 KEU 0 0 FALSTEIN, Sydney Mr Falstein - The honorable member's statement was a gross misrepresentation. It was wholly untrue, and was entirely unprovoked by me. Sitting suspended from 5.55 to 8 p.m. 556 KEU 0 0 FALSTEIN, Sydney Mr Falstein - I rise to order. This afternoon I made a personal explanation in reply to some grossly offensive and insulting remarks by the honorable member for Reid (Mr. Lang). In order to restore dignity and order, I ask that the honorable member be called upon to withdraw and apologize 556 10000 0 0 CHAIRMAN, The The CHAIRMAN - The honorable member for Watson (Mr. Falstein) ia entitled to make a personal explanation, but it is now too late for him to ask for a withdrawal of certain remarks made by the honorable member for Reid (Mr. Lang). He should have done so at the time that the alleged offensive and insulting remarks were made. I remind him that at the time the Chair ruled that the remarks were not unparliamentary. 557 JTF Perth 0 0 BURKE, Thomas Mr BURKE .- Except to say that the budget gives evidence that the Government is moving; in the right direction, I shall not, at this stage, deal with the arguments used by honorable members opposite against the policy of the Government as revealed in the budget, but shall deal with one or two matters that have arisen during the course of the debate. First, I wish to refer to some remarks by the honorable member for Swan (Mr. Hamilton). I would have had a good deal more to say regarding the honorable member's maiden effort in this chamber were it not that he is not now in his place. I shall, however, refer to what I regard as a gratuitous insult offered by the honorable member to trade unionists of "Western Australia. He said that the training of ex-servicemen who are seeking rehabilitation was being restricted by the trade union movement in that State. The honorable member was employed in the Department of Post-war Reconstruction under an able and earnest man, Mr. R. A. "Wood, the Deputy Director of Post-war Reconstruction in that State, who does not share the views expressed by the honorable member for Swan. On the contrary, he has informed me on many occasions that he has had the fullest support from the organized trade union movement of "Western Australia. I go further and say that, so far from restricting the volume of training, the trade unions of Western Australia held a combined meeting at which & resolution deploring the slowness of the training, and demanding that the work of training be accelerated and that more men be given opportunities to learn trades was carried. The honorable member's statement was incorrect; it was intellectually dishonest; it was, T repeat, a gratuitous insult to the trade union movement of Western Australia. I leave the matter there. I have no doubt that during the next three years I shall have other opportunities to deal with arguments advanced by the honorable member. Another matter to which attention should be drawn was the speech of the new recruit to the Opposition, namely, the honorable member for Reid (Mr. Lang). I pass over completely the speech of the honorable member for Moreton (Mr. Francis), who preceded me, not because what he said was unimportant, but because we have heard similar remarks from him time after time. I shall refer to the speech of the honorable member for Reid, because that honorable member stated clearly and definitely some of the principles upon which the recent election campaign was fought by those who opposed the Labour party. The honorable member showed clearly his political affinity with the official Opposition; I propose to examine his speech, and draw attention to his political record. The honorable member for Reid is famous, or infamous, according to the point of view, in the political life of this country. I share the view expressed by the honorable member for Barker (Mr. Archie Cameron) recently when he referred to the honorable member for Reid as one of the most sinister figures who ever disfigured the public life of this country. Casting his eyes around the chamber the honorable member for Reid said that he looked in vain for the Labour party. We reply, here is the Labour party - a party which has increased in strength since the time when it suffered devastating defeats because of the paltryambitions of the honorable member himself. The Labour party has grown in stature as the result of having purged its ranks of such traitors as the honorable member. The Labour party's record of social services and beneficial legislation, passed in the short space of five years, dwarfs the achievements of all other governments in a hundred and twenty-three years during which time government^ of various types have been in office. In both war and peace the Labour party ha3 a record that is the envy and the admiration of the world. That is my answer to the honorable member for Reid. He claims that, the Government is afraid to answer his arguments, but the simple fact is that he has sought to obtain the best of both worlds in this chamber. He has revealed himself as a bitter and violent opponent of the Government ; yet he has chosen to sit on the government side of the chamber. I demand that he be made to take his place among members of the Opposition. Until he does so there can be no proper organization of the debates in this chamber, and we shall have a repetition of what occurred to-day, when three members of the Opposition in succession attacked the Government without any reply by the Government being allowed. The honorable member must be made to take his place among those Opposition members who push him forward and endeavour to secure for him the best 1) road casting times. 558 JTY 0 0 CAMERON, Archie Mr Archie Cameron - Why not put the honorable member for Reid in the Ministry as was done with the honorable member for Melbourne (Mr. Calwell) when he criticized the Government? 558 KNX 0 0 HARRISON, Eric Mr Harrison - Why not treat him as the honorable member for Dalley (Mr. Rosevear) was treated by the Government? 558 009MC 0 0 HOLT, Harold Mr Holt - Or as the Government treated the honorable member for East Sydney (Mr. Ward), who is now Minister for Transport? 558 JTF 0 0 BURKE, Thomas Mr BURKE - If the Opposition really loves the honorable member for Reid as much as would appear to be the aase, it would give to him a little world of his own in which to play, a tiny platform on which to strut; it should make available to him its propaganda organization so that he may gratify his vanity. 558 JTY 0 0 CAMERON, Archie Mr Archie Cameron - If that were done, there would be nothing left for the Minister for Information (Mr. Calwell). 558 10000 0 0 CHAIRMAN, The The CHAIRMAN - The honorable member for Barker (Mr. Archie Cameron) and other honorable members must cease interjecting. 558 JTF 0 0 BURKE, Thomas Mr BURKE - From his place in this chamber the honorable member for Reid claims to speak for Labour, but every Labour man indignantly repudiates him. If ever the honorable member had the right to speak for Labour, he has forfeited it. His record throughout the years is that of a man who has 'divided his country and the party which he professed to serve. The honorable member has said to the country at large that the Government kafraid to hear him, afraid to permit him to speak, fearing the consequences.. My reply is that the Government is ready and willing to join him in. battle in this chamber or on any platform in the country, and that it will fight him as redoubtedly as it will resist its other opponents and the traitors in itsranks. It is well that not one of those honorable members who were formerly associated with him chanced to catch theChairman's eye and got the call to speak, on this occasion because they may have recalled with bitterness the part he soconsistently played in the political affairs of New South Wales. They would have told us of the part he played in the formulation of the Premiers plan and. how he had subsequently repudiated it; they would have spoken of the men hehad trampled underfoot in his ruthlessbid for power and of his violent personal, animosity towards any one who dared to oppose him and to thwart his will when he was at the height of his political power. They would also have spoken of the failure of the Government .Savings Bank of New South Wales. Whilst I. do not lay at his door the blame for the failure of that institution - I believe the reasons for its failure went deeper even than the honorable member'sauthority - there can be no shadow of doubt that much of the suffering imposed on the small depositors of the bank by its failure may be regarded as due solely to his insufferable vanity. They would have told ais, too, of the army of inspectorsappointed by him to police the dole paid to the unemployed in New South Wales. I do not say that the state of affairs which necessitated the introduction of the dole was a matter over which he had sole control - any government would have been forced toadopt some such measure of relief to ease the sufferings of the unemployed - but I do say that the honorable member endeavoured to place upon others the blame for circumstances in respect of which he himself had a major responsibility and by that means endeavoured to escapethe consequences. The sufferings of the people brought about by the administration of the dole were undoubtedly the responsibility of the honorable member. His former associates could tell us of the army of inspectors who invaded the homes of the poor recipients of the paltry dole; they could have spoken feelingly of how under the dole system a man's home no longer remained inviolate. "What a man! "What a story! The honorable member calls himself the watchdog of Labour. The self-styled watchdog of Labour is but the bloodhound of former years. The Labour movement to-day has no doubt where he stood throughout the years or where he stands to-day. The call was echoed in Sydney and rang throughout New South Wales and in this chamber that Lang was right. From the viewpoint of honorable members opposite, no doubt his endeavour to split and wreck the Labour movement is right and that it is right for him to play the game of the reactionaries who have besmirched the annals of political history. If he desires a fight, as we are led to believe he does, I and every honorable member on this side of the chamber accept his challenge. We shall answer his charges whenever and wherever he dares to make them; we shall turn the spotlight upon his words and actions to demonstrate what manner of man he really is. The people of Australia - the working man and woman in the community - do not need to be told where the honorable member stands politically. They have no doubt that he is real; they are painfully aware that the part that ' he has played in Australian politics has been a real one. And in describing him they will use a phrase which is peculiarly Australian. Let me deal now with some of the remarks made by the honorable member for Reid during his speech on the budget. Those who have sought to make political capital out of the speech must have been gravely disappointed, for it consisted of a mass of generalities and a series of meaningless and empty phrases. It made me wonder how the honorable member had grown in political stature during his career in New South Wales politics. I have no doubt that had hp made in Western Australia political speeches such as that which he delivered in this chamber to-day his audience would have laughed him off the platform. He would have had perhaps some entertainment value, but no.hing more. His real nature was unmasked by his unworthy attack on the honorable member for Watson (Mr. Falstein), and his statement that in this country to-day ou.v an alien can obtain anything. Thus we had a clear insight into the real element behind the facade of alleged statesmanship with which he seeks to misguide the people. He has a marked antialien outlook, the hallmark of the typical jingoist. By his very utterances the honorable member has revealed his inmost thoughts. He spoke of what he regarded as a politically indecent reduction of indirect taxes proposed by the Government, amounting, as he said to £12,000,000. He also said that the Government is imposing excessive taxes for some undisclosed purpose. By these empty utterances, 'he has demonstrated how barren of thought, how devoid of knowledge, he is. He sought to show that by a simple amendment of our income tax legislation an extra £1 a week could be placed in the pockets of wage-earners receiving £300 per annum. An examination of the figures, of course, will prove how incorrect, how fax removed from realities, is such a claim. The simple fact is that to-day we have two different classes of taxing measures existing within one general framework of our taxation system, the social services contribution and the income tax. I see no difference between them, because I believe them to be merely a distinction without a real difference. The fact is, however, that to-day under the Government's social service legislation the benefits granted to the people on the lowest range of income are greater than have ever been known in the history of this country. In the case of the man with an income of £300, and with ordinary family responsibilities the tax is approximately £12 per annum. The honorable member claimed that by reducing this tax we could save £1 a week, and put it into the pocket of the working man. I need say no more. He asked us to compare this budget with any other that was ever produced, and said it would immediately become apparent how far it was divorced from Labour policy. We need do no more than compare it with some of the budgets which he himself produced in New South Wales. Under this budget, social services contributions start at 3d. in the £1, and rise to a maximum of ls. 6d. Under one of the Lang budgets, there was a flat-rate social service tax of ls. in the £1, irrespective df the amount of income. Thus, he taxed the people much more heavily than is proposed under this budget, and no exemptions whatever were provided. The honorable gentleman also spoke of retiring allowances. He said that it was necessary for an applicant to prove that he was a pauper before he was entitled to receive the old-age pension, and he suggested that the means test should be abolished. I ask honorable members to consider who would benefit from the abolition of the means test. He said that it could be abolished at a cost of £20,000,000 a year. I believe that it would cost much more than that, but let us accept his figure for the moment, and ask ourselves who would benefit from this extra outlay by the Treasury. It is obvious that not one penny of it would go to those who now have only £1 12s. 6d. a week pension on which to live. The money would go to those who, in addition to the pension, were in receipt of other incomes. They might be receiving as much as £5 5s. per week. Some of it would also go to those who, besides their pension, possessed non-income producing property. Thus, the honorable member who claims to be the champion of the underprivileged, to be the only real Labour representative in. the House, would deny to those who are most in need of it one penny from the extra £20,000,000 which he proposes to .hand out. He would give it all to those who are already in receipt of fairly substantial incomes. The honorable member also spoke of child endowment, and the payment of endowment in respect of the first child as well as subsequent children. I shall leave it to other honorable members to deal with that subject, and to cite his own record when he wa§ leader of the Government in New South Wales. That record constitutes a damning indictment of the honorable member, and a complete refutation of his bold statements to-day. We have already heard enough to realize what a hollow sham, what a miserable mockery, are the arguments of this avowed champion of the Labour movement. I turn now to the speech of the Leader of the Opposition (Mr. Menzies), who discussed, among other things, the subject of industrial unrest. He was very ably answered by the honorable member for Fremantle (Mr. Beazley). If we want further condemnation of the policy which he advocated, it is only necessary to turn to the record of the BrucePageGovernment. All the measures suggested by the Leader of the Opposition were tried during the regime of that government, and proved a dismal failure. As the honorable member for Fremantle pointed out, coercion is no remedy for industrial unrest in Australia or elsewhere. The Leader of the Opposition also advocated a further reduction of income tax, and implied that such a reduction would be a panacea for all our economic ills. As I have pointed out, income tax is divided into two parts, a social service contribution and straight-out income tax. Which of these does the right honorable gentleman' propose to reduce? Does he advocate that the benefit of the reduction be given to those who now pay only the social service contribution? I do not think so. We know that members of the Opposition favour the placing of all social services on a contributory basis. Therefore, we may assume that the reductions advocated by the Opposition would not apply to those who pay a social service tax and no other, but I should like to hear some honorable member opposite elucidate this point. I have here a table which sets out the incomes receivable before persons become liable to social service contributions, and those receivable before they pass out of the social service field and into the field of income tax. The amounts of income per annum which may be derived without incurring liability for social service contribution are as follows: - Since we have heard no clear statement that any reduction of tax proposed by the Opposition would apply to social service contributions, as well as income tax, we may take it that the lower-paid taxpayers would not benefit at all. The annual incomes which may be derived without incurring liability to income tax are as follows : - Thus, unless the Opposition extended its suggested remissions, in contradiction to its already expressed policy, so as to cover those who now contribute to social service costs, the reductions of tax which they suggest would be of no benefit to those in the lower income groups. Even if we give the Opposition the benefit of conceding that if in power it would remit taxes to all groups of taxpayers, where do we get ? The Leader of the Opposition proclaimed on the hustings that he would cut the income tax by 20 per cent., but how would that benefit wage-earners in the lower ranges? A married man with two children, on £250 a year, would benefit by about 9s. a year, but men in the top ranges of income would benefit substantially. So I condemn the Opposition's policy as unjust and economically unsound. It is economically unsound because of the situation that exists to-day. Amongst the higher ranges of income there is a sufficiency of money, not only to buy ordinary goods and services, but also to build up short-term deposits that threaten the prices structure. Remissions to people in the lower ranges will increase their power to purchase goods and services that are plentiful. The Leader of the Opposition said that this budget only benefited people in the higher income ranges but conferred no benefit on the middle class. I said that that was a specious argument, and the right honorable gentleman challenged me to produce evidence to refute what he had said. I accepted the challenge >and went to an authority that was equally available to him. That authority is the report of the Committee of the House of Commons that in 1926 made the most exhaustive investigation of taxation ' ever made in the British Empire, probably the world. The report is called the " Colwyn Report ". It makes clear that reduction of indirect tax confers greater benefit on men with small incomes but big family responsibilities than does the reduction of direct taxes. I quote from the report - We thus conclude that of the five arguments which appear to be principally responsible for the fear that existing direct taxation is prejudicial to employment and prosperity tests upon a misconception. Such taxation, in our judgment, -cannot reduce the aggregate purchasing power of the community. Nor do we find that it raises prices, or materially reduces the output of work - of saving - or of enterprise. The report makes the point that direct taxation does not reduce total spending power but merely transfers spending power from those with a sufficiency to those without. The report goes on to say - We recommend, therefore, that, subject to the needs of any fresh expenditure, any future surplus of revenue should be devoted, primarily, to the abolition of the food duties, and thereafter of the duties on entertainments, and upon artificial silk. We are of the opinion that these reductions should take precedence of any further reductions of direct taxation. It goes on to point out the disturbing features of indirect taxation, which has grown in volume and variety since the report was printed. It says - They show some extremely disturbing .features. The burdens of taxation on family incomes of £200, and under (as shown in the first table) are evidently very heavy. The percentage taken from such incomes (£200 and under "family incomes") appears to be of the order of 10 per cent, to 13 per cent, which we can only regard as unjustifiably high. In view of the wide-spread belief that existing taxation presses -with exceptional weight on the middle class, we wish to call special attention to this somewhat unexpected result shown by the figures. It proceeds with this telling passage - We have found very little support, but much condemnation, among witnesses for indirect taxation in principle. We are, ourselves, of opinion that taxes on commodities, regarded as part of a system of raising the money required for State expenditure, are objectionable in principle, and that the important place which they occupy in our tax system can only be defended on the ground that they are survivals from a period when the administration of direct taxation was much more difficult than it is to-day. Our objection ,to indirect taxation rests, primarily, on its necessarily regressive character. Finally I produce the following table from the report showing the incidence of indirect taxes on a man and his wife and three children on varying grades of income, which, with the leave of the committee, I shall incorporate in Hansard - The table demonstrates the regressive nature of indirect taxes. It will be seen that not until the income of £1,000 a year is reached does the total of direct and indirect taxes equal the percentage of indirect taxes bearing upon the lowest range of income. I think that is the answer to the contention of the Leader of the Opposition, that the budget proposals confer benefit on the earners of high incomes as against the earners of low incomes. I believe the Government ought to take the right honorable gentleman and his colleagues at face value and introduce a taxing measure that would confine benefit to the earners of low incomes. I think there would be no opposition to it, for the Leader of he Opposition and his col- leagues have said that this budget is unfair because it benefits the upper classes. They presumably want to confine benefit to those in receipt of the lower incomes. All of the measures that the Government proposes to put on the statute-book will confer general benefit. Honorable gentlemen opposite scoffed at the remission of one penny a gallon of the tax on petrol, saying that that would benefit only wealthy people who had motor cars that they used for pleasure, but, as the honorable member for Fremantle made clean1, business houses that use petrol will have reduced costs which will be reflected in reduced prices or in increased profits, which will be taxed. The trend of all measures to be introduced is in the right direction. The budget is intended to cover the transition from war to peace. It is true, as the honorable member for Batman (Mr. Brennan) said, that many of the items of expenditure are the aftermath of war and will not be repeated in succeeding budgets. In the compilation of a budget there are many factors which cannot be accurately determined. The honorable member for Moreton was given leave to incorporate in Hansard some matter showing how, in recent years, the figures presented to the Parliament by the Treasurer had proved to be not accurate. It would take more than a Treasurer to get exact returns. Mandrake the Magician would be needed to do that job. With so many factors uncertain, and so many results impossible of predetermination, the Treasurer has done a remarkably good job in getting so close to actual figures in his budget taxation estimates. I do not agree that there should be any immediate substantial remission of direct taxes. In this budget we are providing for war expenditure of approximately £220,000,000. For that, I assume, our means of mechanical warfare will be brought to their highest pitch of efficiency ; but mechanization is only one side of war. I believe that money should be provided for expenditure upon things that would not only be of value in time of war - we can only assume from the proposed defence expend:.*"i"» that wars are still possible - but also would be valuable to the community should war not recur. That is a matter that should be considered before the Government decides to make any great reductions of direct taxes. When World War II. broke out, large numbers of men were found to be physically unfit for combat service. This, of course, limited considerably our effective fighting strength. Therefore, the Government would be well advised to extend the scope of out social services in order that the people of this country may achieve an adequate standard of health and physical fitness. This would be of great value to the nation, not only in war-time, but also in peace-time. The same argument may be advanced in regard to other avenues of what is normally regarded as civil expenditure. I refer particularly to education, because there can be no doubt that a high standard of education improves the efficiency of any military force and therefore makes a better war effort possible. I believe, therefore, that, as the budget indicates that surpluses may occur, the Government should examine alternative avenues of expenditure. First, and in my opinion primarily, if further remissions of taxes are decided upon, indirect taxes should be the first to be reduced. Not only are these taxes bad in their incidence, but also they are detrimental to the smooth working of industry, and.o'bstructive to its proper re-conversion to peace-time needs. Second, an examination should be made of the benefits that can be derived from alternative avenues of expending the proceeds of taxation. There are many avenues in which money could be expended to produce enormous dividends. Finally, expenditure transferred to new avenues would be reflected not only in increased purchasing power in the community, but also in increased tax collections, and would enable the Government to work out a more scientific and better taxation system. I believe that the budget will be welcomed by the people generally. It is idle to suggest that the taxpayers would have preferred a reduction of ls. a week in income tax rather than perhaps 10s. a week in indirect taxes. The Opposition should not shelter behind that delusion. I have a far higher opinion of the intelligence of the Australian people. I believe that they will regard a reduction of their expenditure on necessary goods as the result of remissions of such impositions as sales tax, as of much greater value than a paltry increase of ls. a week in their pay envelopes. I believe that the budget is a good one, and that it will be accepted gladly by the people of this country. 563 KCA Capricornia 0 0 DAVIDSON, Charles Mr DAVIDSON . - In this, my first speech in this chamber, I desire first briefly to express my thanks to those who were responsible for my election, and to declare my intention to merit that honour, bringing to that task -whatever qualities of common sense, straightforwardness and toleration that I happen to possess. Previous speakers have drawn attention to the significant fact that the budget makes no provision for an immediate reduction of direct taxes and I have no doubt that that matter will be further, and more authoritatively, dealt with by subsequent speakers. Therefore, it is not my intention to take up much of my time on that subject. I do propose, however, definitely and emphatically to aline myself with those speakers who contend that there cannot be any recovery of our prewar standard of living in this country, or any realization of the possibilities that we are so fond of saying lie ahead of this country, until there has been restored to every one in the community, incentive to produce and to improve himself - an incentive that is not evident in the community to-day. Under conditions of acute national emergency, a government is entitled to demand of the community generally a supreme effort in which all thought of personal reward plays little part. During the war, that demand was made, it was answered magnificently, and we won the war; but under normal conditions - one cannot by any stretch of the imagination describe present conditions as normal although by now we should be approaching a state of normality - every citizen is entitled to expect an adequate return for his work. That is part and parcel of the make-up of every man, and it is a characteristic that is to be applauded, because from it springs the initiative and ambition that are so necessary for the forward march of any country. It would appear, however, that the Government fails to realize the difference between war conditions and those at present prevailing. Apparently it still expects from all sections of the community the same unselfish effort that was put forward during the war. It still expects people to put country before self. It wants increased production of goods before it is prepared to permit reductions of taxes - and this in spite of the readily acknowledged fact that no person or community can be expected to live on such a high plane indefinitely. In my opinion, the Government is wrong in that expectation, and that it is wrong is proved by the fact that although more than a year has now elapsed since hostilities ceased we are still lamentably short of many essential commodities. The country is crying aloud for materials required for reconstruction. Another indication of the failure of the Government's policy exists in the fact that industrial unrest from which we had such a pleasant respite a few weeks ago, is again rearing its ugly head. The shortage of goods is due entirely, and the industrial unrest is due in some part, to the continued high taxes from which we are suffering. Neither of these grievances will be remedied until a reduction of taxes is effected, thus providing incentive to effort. I believe that immediately effort is assured of an adequate reward, immediately the real value of wages is enhanced, both of these things will be accomplished by a reduction of taxes and then employer and employee will get on with the . task that lies ahead. Here, may I refer to a passage in the Governor-General's Speech stating that undoubted opportunities for great expansion exist in Australia ? With that statement I definitely agree; but I remind honorable members that the first task ahead of us is our own internal recovery. We cannot expect to be able to take advantage of opportunities outside Australia until we have effected that internal recovery. Those opportunities will not remain indefinitely. If we wait too long, some one else will get in ahead of us. There is another phase of taxation to which I desire to refer before I leave the subject. In comparison with the general matter of taxation, it is of minor importance, but, nevertheless, it is of very definite significance to those whom it affects, and in addition it is having a bearing on industrial peace. I refer to the amounts of tax which are deducted from the earnings of casual workers, such as waterside workers and sugar workers. They are two classes of casual workers who come within the scope of my own personal knowledge. Although these men work broken periods, their tax deductions are calculated weekly, as if their employment were continuous. When I was in Gladstone recently, I found that waterside workers in the district are required to work considerable periods of overtime in order that meat boats, for example, shall be " turned around " as quickly as possible. Consequently, these casual workers earn high wages during that period. On those earnings, their tax deductions are assessed as if they were continually earning them. The truth is that for weeks after a period of work, these men are unemployed. The result is that eventually their tax deductions are greater than their total annual income warrants. The reaction to this position is natural. The men refuse to work any overtime. We cannot blame them. Any honorable member would adopt a similar attitude. But, surely, the remedy lies in the preparation of a special scale of deductions which will provide for the peculiar conditions operating in casual work. Surely, it is not beyond the ingenuity of the Taxation Department to prepare such a schedule. Another factor which is of vital importance in the development of the supply of materials is shipping. Immediate attention must be paid to this problem, if we are to improve conditions generally, and particularly in outlying areas. I note that the Government proposes to continue the Shipping Control Board, and I am wondering whether, that authority will he vested with wider powers to improve existing conditions. The problem is particularly important in outlying areas which have been too long neglected and which are not prepared to tolerate much longer this condition of affairs. Although I speak particularly of the ports to the north of Brisbane, I hare no- doubt that the same set of circumstances applies in other similar areas of' Australia. At the moment, however, I am speaking of ports of which I have a- particular knowledge. In this areasome centres have at times been perilously close to the complete exhaustion of food supplies; as the result of the lack of shipping. Some towns, which have suffered serious damage from flood and cyclone*, require materials- for the repair of damaged buildings. After considerable trouble in obtaining the materials in the southern States, the persons affected have had to wait for months before shipping has been available to deliver these supplies. In the House, questions have been asked' about urgently needed, supplies of wheat and other cereals for the relief of drought-stricken areas. Important industrial organizations have been on the- verge of having' to pay off up to 1,000' employees, simply because they could not obtain some necessary replacement parts- or, as recently occurred, some necessary chemicals. Everywhere in those areas, the community in general; and' industry in particular are required to bear; in addition to the universal burden of shortages, the added burden of lack of transport facilities. The effect of the tremendous losses of shipping during the war is. fully realized', and no one expects this Government or any other government to be able to apply immediately a complete remedy. I realize that the ultimate solution lies in the re-establishment of the ship-building industry, but I do claim that much more could be done and- should be done to give temporary relief to the areas of which I am speaking. As it is not my policy simply to voice destructive criticism without attempting to submit constructive proposals, I shall point out how temporary relief may be given. For many months, there lay rotting in the Brisbane River that type of naval craft known as LST. These craft, and probably others of a similar kind, are eminently suited for the coastal trade. They would have been particularly valuable in servicing river ports such as Bundaberg and Bockfaampton, to name two places which come immediately to my mind. The very great loss of small ships has almost completely deprived' the inhabitants of those towns of shipping facilities. I may be told that all sorts of difficulties prevent the implementation of my suggestion. Perhaps the right to use those particular craft would have been difficult to obtain. Various regulations may have constituted legal obstacles to their use. It may be, also, that there are certain associations which consider themselves to be a law unto themselves and which may have objected to the use of these cr-aft. But nothing of that nature should have been allowed to prevent the granting of urgently needed relief to those centres, and, as I have already said, a considerable time must elapse before added shipping tonnage can relieve the situation. Shipping authorities must give immediate attention to the development of such expedients as- 1 have mentioned. I turn now to the consideration of proposals to expend certain sums of money on national development. I did not read anything in the bud'get that enabled me to form a complete idea of exactly what those proposals are, but it is obvious from the sum which has been earmarked that the Government envisages extensive national development. I shall deal mainly with certain aspects of primary production, where I consider that the Commonwealth Parliament may assist the man on the land. I. hope that any proposals which the Government has formulated, do not follow the pattern to which we have been accustomed during the last two years. I hope, also, that the. Government has learned the, lesson implied in the refusal of the community generally to confer on it added powers in relation to the marketing of primary products. There axe two main methods by which the Commonwealth can assist primary industries. The first is that of providing means to ensure at al! times adequate returns to the producers. I emphasize those three important words - " At all times ". The second is that of taking nation-wide action to reduce losses caused by recurrent disastrous droughts. To achieve adequate returns to the producers, it is necessary to establish machinery which will provide stabilized prices based on costs, of production, plus a reasonable margin of profit. One honorable member said recently that certain statements, are heard in this chamber time and time again. Perhaps the statement that I have just made conjured up the same thought in the minds of some honorable members. Nevertheless, I repeat it, and I will continue to repeat it until such time as it is really applied to primary production. Up to date it has not been applied. In addition, primary industries need machinery which will give them producer control of the marketing of their products. Again, for the purpose of emphasis, I repeat two important words, namely, " producer control ". Stabilized prices, in order to be effective over a period, must be variable. It is not good enough to fix, by the determination of some board, a price which will return to the producers the cost of production, plus a margin of profit, and then embody it inflexibly in an agreement which will operate for five years or more while the Government sits back, pats itself on the back, and says that it has done a good job. We all know that production costs vary considerably from time to time, usually in an upward direction. Therefore, within one or two years the price originally determined for a commodity as being profitable to the producer may become unprofitable. There are many instances of such changes. I cite only one as an example. In the dairying industry, the cost of production of butter was recently determined at ls. 11-id. per lb., but the producers now receive only ls. 7£d. per lb. While I am referring to the dairying industry, I draw attention to a statement recently made in this chamber by the Minister for Commerce and Agriculture (Mr. Pollard) regarding the establishment of a Dairying Industry Advisory Committee to investigate production costs. This statement has some bearing on. the subject of producer-controlled marketing. The Minister announced the appointment of a committee consisting of four representatives of the dairying industry, four representatives of the Government, and a government-appointed chairman. This seemed like a step in the right direction at first. However, when a question was put to the Minister by the honorable member for Wakefield (Mr. McBride), it became apparent that the real constitution of the committee is to be four members appointed by the Government, four more members appointed by the Government, and one more memberappointed by the Government as chairman. That is not what the primary producers need. Reverting to the subject of stabilized prices for primary products, I cite in support of my contention the fact that workers in industry have guaranteed to them for their product - that . is to say, their labour - a stabilized price, which is variable to accord with variations of their costs - that is to say, Che cost of living. They have the benefit of machinery whereby not only their basic prices are determined but also those prices are made to fluctuate so as to be profitable at all times. I have not the slightest quarrel with that system. It is very good. My reason for mentioning it is to support my claim that primary producers are entitled to the same treatment. That is all that I ask for them. They should have machinery to provide for an adequate return for their products, based on costs of production and varied automatically to meet fluctuations of costs. I remind honorable members that the sugar industry, which has been highly organized for a long time, attempted to include that principle in the agreement which was ratified by this Parliament early this year. The agreement covers the operations of the industry for the next five years. The representatives of the industry realized that the period during which the agreement would operate would be fraught with many difficulties. At present, the producers receive for the home-consumed portion of their output exactly the same price as they received in 1932, since when, as everybody knows, production costs have increased by at least 50 per .cent. The export portion of their output has been sold recently at considerably enhanced prices, and this has enabled the industry to carry on under reasonable conditions in recent years. However, the producers realized that the enhanced overseas prices could not be expected to continue at the present high level for more than another year or two. They realized also that there would be a further increase of production costs. Therefore, they sought to safeguard the prosperity of the industry, which affects, to some degree, the economy of the nation generally. They sought to have included in the agreement provisions which would automatically take care of fluctuating overseas prices and local costs of production in the years immediately ahead. That was reasonable and sound. As all honorable 'members know, their application was refused. The only satisfaction which they could obtain was a statement by the Prime Minister that, if the state of affairs which they envisaged did come about, the State Government could apply to the Commonwealth Government to have the position investigated, whereupon the Commonwealth Government might decide to appoint an investigating committee. The industry might eventually obtain some relief by this round-about and longwinded process. That assurance was entirely unsatisfactory, but it is indicative of the general attitude of the Government to primary industries. This attitude means that primary industries have no real long-term security. They must suffer loss before they become entitled 'to have their claims for assistance heard. They must submit to protracted inquiries, and, worst of all, they must appear in the eyes of the public generally as supplicants. By adopting the methods which I advocate, the Government would get away from the present intolerable system under which moneys rightly due to primary producers are doled out to them as so-called " subsidies ". I warn honorable members that the term "subsidy" is becoming more and more bitterly resented by primary producers because, by its use - and it is a misnomer - primary producers are being made to appear as beggars instead of as a national asset. I reiterate that the producers require nothing more than the fixing of reasonable guaranteed prices. If the Government, in its wisdom, considers that, for the benefit of the general economy, prices should be kept at a reasonably low level so that the cost of living may be kept down, I shall not quarrel with it. But I do contend that if, in the application of that policy, the Government fixes a price to be paid by the consumer for some product at a level below that which has been determined as one which would give to the producer a reasonable return based on the cost of production, the difference between the two should be paid to the producer, not as a subsidy but as part and parcel of the Government's prices stabilization policy. The second matter I have mentioned is the marketing of primary products. I consider it to be the Government's function to provide machinery for producer control, and not government control, of the marketing of primary products. In view of a remark that was made by an honorable member opposite, I point out that the refusal of primary producers and the country generally to vest in the Commonwealth additional powers in relation to the orderly marketing of primary products does not mean that the orderly marketing of primary products is not desired. Of course it is. But the producers generally are emphatic that that orderly marketing must be producer-controlled. Again may I cite the sugar industry as an example of effective producercontrolled marketing. As is well known, a sugar board operates under machinery provided by the Government, with government representation thereon, and is responsible for the marketing of the whole of .the sugar crop. As a result of the beneficial operations of that board over a considerable period the sugar industry found itself during recent war years, when world parity was high, in the fortunate position of being able to obtain the whole of the value of those enhanced prices, instead of, as happened to other industries that were not producercontrolled, being forced to watch some portion of those enhanced world prices go " down the drain ". I stress these matters because I believe that if producers be granted those rights, not only will their position he vastly improved, but in addition we shall be near the end of the necessity for continual requests to the Government for assistance. The second method of assistance is national action against drought. It has become rather fashionable nowadays to speak somewhat glibly of the opportunities for increasing primary production in Australia. I do not blame any one in particular; we all do it. As one who has studied the subject, and who has been associated with primary production all his life, I believe the stage has been reached when any considerable further development will be largely dependent upon the development of water conservation schemes. I am particularly interested in this matter because I represent an electorate which is eminently suited to the development of large-scale water conservation schemes. The productivity and wealth of the land in my electorate would be enormously increased by such schemes. There are two areas in particular to which I shall refer: first, the Fitzroy-Dawson-Callide area; and secondly, the area of the Burnett, in the Bundaberg district, which was referred to during this debate by the honorable member forWide Bay (Mr.Corser). Both of those areas are already moving towards the development of water conservation schemes. In the first-mentioned area, a scheme was established by the Queensland Government at Theodore a number of years ago. Already, the farmers in that area have been forced to realize that that scheme does not provide for them all the opportunities which they desire, because it is not sufficiently embracing, and strong committees are now submitting proposals to the Government for a considerable expansion of it. At present, they are attempting to persuade the Queensland Government to make available the services of a competent engineer for the thorough investigation of their proposals. In the Bundaberg area, three or four months ago, a strong committee was formed, composed of representatives of business people, industrial organizations and producers, for the purpose of furthering weiring and water conservation in the Burnett area. It must be realized that no further real progress can be made except along national lines, because the matter is too vastfor local effort to handle. In order to make my point, may I quote briefly from the eighth report of the Rural Reconstruction Commission, where it is stated - In this, the driest of the continents, the conservation mid development of water resources should be an important item in national policyat all stages. Farther -on, it stated - Nevertheless, the sums involved are large and if the capital investment is to he made wisely some nation-wide policy should bo adopted to ensure that progress is orderly and takes place in those regions where it is most necessary. Again, it said - Yet, in the commission's opinion, irrigation, where it is practicable, has a large part to play in the future development of the north. Research and investigation on these matters is long overdue. In fairness, I point out that the State of Queensland has certain plans for dealing with water conservation. It will be remembered that those plans were announced somewhat prematurely by my predecessor in the representation of Capricornia, much to the disgust of their State sponsors. Whilst paying due tribute to the State for proceeding with those developmental plans, nevertheless they appear to me to be much too small and unco-ordinated to achieve real success. I believe that such schemes, if planned and executed on a scale commensurate with their possibilities, would confer very definite benefits, not merely on the area serviced but also on the whole community. They would, of course, increase primary production very considerably. In the areas to which I have referred, it has already been proved that such essential commodities as cotton, dairy products, fodders, sugar, vegetables, fruit and so on can be produced in abundance because of the fertility of the soil. In addition, such schemes would provide an opportunity for the development of cheap hydro-electric power, such as has been suggested by the right honorable member for Cowper (Sir Earle Page). They would also provide an opportunity for the development of secondary industries in decentralized areas; for example, cotton and woollen mills, and the like. Lastly, in those areas in particular, they would ensure the utilization of large-scale and proved coal deposits. I have no doubt that in all other areas similarly situated the same result would accrue as I visualize accruing in the areas with which I am dealing. I believe that, by the development of such schemes, the present population of 70,000 adults in those areas could be enlarged to at least 500,000 within twenty years. The Minister for Immigration (Mr. Calwell), who recently outlined the Government's immigrationplans, pointed out that it was necessary to plan for the absorption of migrants. Of course, that is correct. What better method could be adopted than the immediate preparationof water conservation schemes? It is not sufficient for honorable members to assure themselves complacently that this matter should be left to the States, and that they should determine how migrants can best be absorbed. The problem must be dealt with on a large scale and on national lines. Under such proposals as those envisaged at present, the scheme might be doomed to partial failure, and that would he calamitous. I now draw attention to the need for assistance to primary producers suffering from the effects of drought. Again it may be said that action in this matter should be taken by the States. Primarily the States are more directly concerned, but the Commonwealth Government also is vitally interested. During the last few years, many districts throughout Australia have been visited by droughts. Therefore, the Government must be prepared to assist in solving the problem and must share the responsibility. In most parts of central Queensland, the producers have suffered from three years' continuous drought, and they have received very low returns for their efforts. Their herds of live-stock have been seriously depleted and, therefore, a national asset has been lost at a time when, it is essential to increase the volume of primary production as rapidly as possible. The losses which have been suffered by the producers have been such that they cannot be expected to recover their position within a short period. Some form of relief must be afforded as a national measure, and any such assistance must be by way of gif t. I was pleased to hear the Minister for Commerce and Agriculture announce that the relief to be granted to cerea'l-growers in drought-stricken areas of Victoria was to take the form of a gift. I regret that that relief is not to be extended to Queensland, as many primary producers in that State have been reduced to sore straits through droughts. The position is so serious throughout country areas that an immediate and thorough investigation by a Commonwealth authority is necessary for the purpose of determining, in co-operation with the States, how best the present serious difficulties of the primary producers can be overcome. It is necessary to ensure an equitable distribution of any sums made available for the purpose of drought relief. That may appear to be a superfluous statement, but I stress the point, because, within my own knowledge, considerable sums were recently made available by the Government to dairy-farmers in Queensland for the purpose of drought relief, and the distribution was not equitable. It is rather significant that this money, which had been due for more than six months, was suddenly paid to the 'producers during the week preceding the general elections, but without the desired result. The basis of eligibility on the part of the producer to participate in drought relief was that his gross returns for 1945 should be less than 75 per cent, of his gross returns in 1944. In other words, the farmer who spent his all in the purchase of fodder in order to keep his herd in good condition, and was thereby able 'to prevent his gross returns from falling below 75 per cent, of his returns in 1944 was ineligible for relief, whilst a farmer who . neglected his herd received in some cases hundreds tff pounds. Differential treatment of that kind should not be permitted, because it merely places a premium on inefficiency and penalizes the producer who is efficient. We should strive to assist the efficient producer . in any measure of drought relief, otherwise the scheme must fail in its main object. I trust that the Minister will give attention to this matter. When water conservation schemes have been carried out on an extensive scale throughout the Commonwealth, fodder conservation will, let us hope, become of minor importance from the national point of view; but for the present it is a matter of major importance, and I trust that a portion of the sum to be made available for assistance to primary producers will be devoted to the conservation of fodder on a national scale. There are two methods by which this object can be achieved. One is by providing assistance to enable individuals to conserve fodder on their own holdings. That is entirely a State matter. The other method is by the development of a central scheme on a national basis. I believe that the Minister is doing his utmost to deal with the difficult situation that has arisen in supplying wheat for stock feed. How much easier it would have been to overcome the difficulty had a centralized and general scheme been introduced. I cite the case of a certain co-operative dairying company, which, eighteen months ago, developed a large scheme for which it required a loan of £50,000. After certain negotiations, the Government refused to make the loan available, because of a minor administrative requirement which the company could not fulfil. Had that loan been granted, the primary producers in the area concerned would have been placed in a markedly improved position, after having suffered from the effects of drought for many months. The Minister, being a farmer himself, will, I hope, give earnest consideration to the various matters which I have mentioned. There are many others to which I could refer, but, as I have almost exhausted my time, I shall content myself by leaving them for another occasion. I sincerely thank honorable members generally for their courteous and considerate hearing. 570 L08 Dalley 0 0 ROSEVEAR, John Mr ROSEVEAR . - I should not have taken part in this debate had it not been for the truculence evinced by the honorable member for Reid (Mr. Lang) in the speech which he delivered to-day. In that speech he once more, with an egotism that was almost admirable, described himself as the only Labour man in the Parliament, all other avowed Labour supporters to be "so-called Labour men ". 570 KOL 0 0 MCBRIDE, Philip Mr MCBRIDE - The honorable member himself said that Lang was right. 570 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - The honorable member for Wakefield (Mr. McBride) is very funny when he has his teeth out. I said that Lang was right when he was right. If I described the honorable member for Wakefield as a wit I would be only half right. The entry of the honorable member for Reid into this Parliament has been heralded and boosted by the press as an epoch-making event. In the past, those who control the press would have been only too willing to hang, draw and quarter him, but that was when he really preached the doctrine of Labour. Now he is depicted in cartoons as the shadow over Canberra. The boosting which he received from the press, and his enthusiastic reception by honor able members opposite, ought to induce him to pray that he may be saved from his friends. The honorable member has told the public through the press that he was not particular whose corns he trod on. Treading on people's corns is a very painful thing. I have been in places where people have trodden accidentally on others corns, and they have been described in forceful terms; but to tread on people's corns and beg no pardons is to ask for trouble, and that is what the honorable member for Reid is looking for in this Parliament if he continues treading on the corns of people who have had as long an association with the Labour party as he has had. On recent occasions he has added to his offence by describing members of the Government as the right wing of the conservative party. There can be nothing further from a real Labour man than the right wing of the conservative party, and I am wondering whether the honorable member wittingly betrayed the dwindling legion of his supporters outside this Paliament when he asked them to give their number two preference votes to what he now calls the right wing of the conservative party. If we are the right wing, and honorable members opposite are the left wing of the conservative party, it follows logically that a real Labour man, such as the honorable member says he is, must be much closer politically to the left wing than to the right. That, perhaps, explains his close liaison with parties opposite during the election campaign, and since his advent in this Parliament. The honorable member for Reid described this budget as a dishonest one. With the purpose of setting up an Aunt Sally so that he might knock it down, he referred to the possible dishonesty or possible incompetence of the Taxation officials, but it was easy to foresee that he would eventually return to the point which he wished all along to make, namely, that the Treasurer had been dishonest in producing such a budget. Why did he declare this to be a dishonest budget? Because the Government proposes to relieve the public of indirect taxes amounting to £12,000,000. During the election campaign the Opposition parties pointed out that indirect taxes were a most unfair burden on the workers, because they weighed most heavily on those who were rearing the largest families. They added that if industry were relieved of this burden, production would increase. Apparently. that argument also appeals to the honorable member for Reid because he says that the budget is dishonest in that it proposes to relieve the public of only £12,000,000 in indirect taxes, an amount which, he says, the Government would rapidly recoup from taxes on increased sales. The honorable member also said that it was a dishonest budget because the Prime Minister (Mr. Chifley) proposed to review income and expenditure from month to month. That is not a new proposition. It is in accordance with a pledge given to the people during the election campaign, and this is the first time that I have heard described as dishonest the action of a man who set about redeeming an election pledge. The. honorable member said that we were not in peace and were not in war, and on that he based an argument that the Treasurer ought to be able to predict more faithfully prospective income and expenditure than would be possible in peace-time. Well, I have been in Parliament for a long time, and have seen many budgets produced, but never in the piping days of peace, no matter what government was in power, have I known a Treasurer to be able to predict with any degree of accuracy what would be the income and expenditure of the Government for the year. "We are not living under peace-time conditions, it is true, and we are not at war, but we are passing through more difficult times than those of either peace or war, so far as the preparation of a budget is concerned. "With the world as it is to-day, no one can predict with any confidence what will be the budgetary position from month to month, because it must depend so largely on circumstances outside the control of the Parliament or of the Government. Therefore, the determination of the Treasurer to review the financial situation from month to month, far from being evidence of dishonesty, is evidence of his sincere desire to redeem his promise to the people, and of his determination to reduce taxes progressively if it is possible to do so. The honorable member for Reid described this Government, because of its taxation policy, as a " so-called Labour Government ", and in support of his argument he flourished and quoted from the Labour platform. I remind him and honorable members that Satan can quote scripture when it suits him. That part of the platform which the honorable member quoted was there in 1931, when he was Premier of New South "Wales. At that time, he had an opportunity, if not to remit taxes on those receiving less than £6 a week, at any rate to remit it on those receiving the basic wage and less. To-day he flourishes the platform of the Labour party before us, but in those days he was the last to observe its provisions in respect of taxation. I shall deal more with that point later. The honorable member referred to the remission of taxes on incomes up to £300 a year and drew attention to the agitation for an increase of £1 a week in the basic wage. Strangely enough, employers and the enemies of organized labour in the Commonwealth have used exactly the same phrase as did the honorable member when dealing with the united attempt of the trade union movement to obtain an increase of the basic wage. They 'put it down to Communist activity, which was a very good way of evading the issue. The agitation for an increased basic wage is no more Communist activity than is any other claim made by the Labour movement. It is the expression of a desire to improve the living standards of the people in industry, but the honorable member for Reid and other opponents of Labour would wipe the agitation aside by referring to it as Communist propaganda. He argued that whilst the Communists aTe advocating an increase of £1 a week in the basic wage, an exemption from income tax of incomes under £300 a year would automatically put more than £1 a week into the pockets of the self -same workers, and would prevent further stop-work meetings and strikes. "What are the facts? Let us consider the range of income to which the honorable member .referred and take, not the intermediate ranges but the maximum of £6 a week, arid see what would happen. A man without dependants who received £6 a week pays 17s. a week in income tax and social service tax combined; a man with one dependant pays lis. 3d. a week; with two dependants 6s. 9d. a week; and one with three dependants 4s. 9d. a week. It will be seen that we are gradually getting away from the argument of the honorable member for Reid that the abolition of the tax on incomes up to £6 a week would so satisfy men that they would not hold stop-work meetings or engage in strikes. The greater the domestic responsibility of the worker in any wage group the less the benefit to him of the exemption proposed by the honorable member for Reid, because only 3s. a week is paid in taxes by a man with four dependants, and only ls. 6d. a week by a worker with five dependants. A man with six dependants who receives £300 a year pays only 3d. a week tax. Those figures relate to an income of £6 a week - the maximum of the group to which .the honorable member for Reid referred - .and therefore it is sheer exaggeration on the part of the honorable member to say that industrial strife would be avoided if persons in the wage groups referred to were exempted from income tax. The honorable member went on to say that it was a fashionable slogan in the depression years that everybody should pay taxes, and that it was evident that the Government has fallen for the theory. That may be so, but I will show that the honorable member, when Premier and Treasurer of New South Wales, was caught hy it, because when, just prior to the period of which he spoke, an anti-Labour government in office in that State imposed a wages tax of 3d. in the £1 in addition to a tax on incomes the honorable gentleman, who was then in opposition in the State Parliament, fought an election on what he described as the iniquitous wage tax. He promised to abolish it if his party was successful at the elections. His party was successful and the wage tax of 3d. in the £1 was abolished. But the Government led by the honorable member imposed in its place a tax of ls. in the £1 on all wages. There was no exemption in respect of incomes up to £300. 572 K9G 0 0 JOHNSON, Herbert Mr Johnson - That tax applied even to seasonal workers. 572 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - Yes, it applied to every person who earned wages. I am not discussing whether the tax was right or wrong, but in the light of those facts, the honorable member for Reid must not claim that the present Government has no right to describe itself as a Labour government because it does not exempt incomes up to £300. When he had to accept the responsibilities of office, and was called upon to present a budget to the Parliament of New South Wales, he was, apparently, in favour of something which he does not favour to-day. It is easy for a reckless boy to cast a stone through his neighbour's window, and be unconcerned, because he has no sense of responsibility; but when the honorable member for Reid had to accept responsibility in 1931 he kept his promise to abolish a tax of 3d. in the £1 by substituting for it a tax of ls. in the £1. 572 JRJ 0 0 BOWDEN, George Mr Bowden - The honorable member must have regard to the circumstances of the time. 572 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - I am hot questioning the time or the necessities of the time. I am saying that it is inconsistent for the honorable member for Reid who led a government which imposed a tax of ls. in the £1 on an income of even £1 a week to claim that the solution of industrial unrest to-day is to exempt all incomes up to £6 a week from tax. 572 JLZ 0 0 ANTHONY, Hubert Mr Anthony - Perhaps the honorable member for Reid has realized the fallacy of the arguments he then used. 572 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - -In my opinion, the honorable member for Reid is not flattered by having the support of the honorable member for Richmond (Mr. Anthony), whose cheers and applause fall on deaf ears. The purpose of the tax of ls. in the £1 on wages was to provide work and sustenance for the unemployed. At the same time the honorable member for Reid talked about lopping off the "tall poppies ", and confiscating all amounts received as income in excess of £500 a year. Although no action along those lines was taken the Government led by the honorable member did perpetuate the tax of ls. in the £1 on all wages. It was a specific and definite tax on the poor to keep the unemployed. As 1. shall show later, even in the distribution of these moneys to the unemployed a most iniquitous means test, more stringent than any that had ever been introduced in any State of the Commonwealth, was imposed. The honorable member speaks of collecting taxes that have remained uncollected, and says that by their utilization we would be able to to make further remissions of taxes. Such a proposal was also made by the Leader of the Australian Country party (Air. Fadden) during the election cam:paign after he had discovered by some means or other that approximately £40,000,000 is owed to the Taxation Department. The right honorable gentleman then said in effect that if he were given control of the country he would meet the liabilities of the Government with the bad debts of the Taxation Department. 573 F4T 0 0 FADDEN, Arthur William Mr Fadden - What rot! 573 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - That has a really popular appeal to unthinking people of the type of the honorable member for New England (Mr. Abbott). It is popular to refer to this great amount of uncollected taxes and to make it appear that the money is owed by big property owners and other wealthy men. I venture the opinion that if an analysis were made of the people in debt to the Taxation Department it would be found that they largely consist of those who are misrepresented by Australian Country party members in this chamber, of many thousands of working people who have met with temporary adversity and are unable to meet their obligations, and of small business men. So that to say, by and large, that the great mass of uncollected tax is owed by wealthy people is a misstatement of fact designed to tickle the ears of unthinking people. The honorable member for Reid suggests as another expedient for the saving millions of pounds, the cutting away of dead wood. To what dead wood does he refer? 573 BV8 0 0 CALWELL, Arthur Mr Calwell - To the Australian Country party. 573 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - A very concise interpretation. I have discovered that when governments start to cut away dead wood they generally commence at the bottom, creating unemployment among workers in the various departments who are on the lower salary ranges. When any responsible man in the National Parliament speaks about cutting out dead wood surely he should be more explicit and let us know exactly at what he is aiming. Let us come now to a consideration of the means test, the abolition of which was referred to by the honorable member for Reid. To him it was tremendously simple. He said; that the Australian Country party favoured it, that the Liberal party favoured it, that he himself favoured it - it was only his modesty that made him mention himself last. He said that if only the Labour party favoured the abolition of the means test the whole of the members of this chamber would unanimously concur. For how long has the honorable member for "Reid advocated the abolition of the means test? I have perused the social service legislation passed by the Government led by the honorable member when lie was in office in New South Wales. I give him the fullest credit for it for New South Wales was from twenty to twenty-five years ahead of any other State in the Commonwealth in its progressive outlook on the need for social benefits for its people. If we peruse the Family Endowment Act passed by the New South Wales Parliament in 1927 we will find that it contains a provision covering the means test which is more stringent than any to be found in the social legislation passed by the Commonwealth Parliament. This is the text of the provision in the New South Wales Family Endowment Act of 1927, not after the United Australia party had monkeyed with it, but as it was passed by the Government led by the honorable member for Reid - No certificate for endowment shall be issued in any case where - the family income in the twelve months immediately preceding the date of the claim exceeded the aggregate of the following amounts, namely: - the amount for one year of the living wage based on the requirements of a man and wife without children and for the time being in force and appropriate to the case and the amount of Thirteen pounds for each child in the family; It will be seen, therefore, that the payment of child endowment under the New South Wales act was based on a means test, and that only those on the basic wage were entitled to full payment. The higher the wage increased above the base wage the lower the payment of child endowment to the recipient regardless of the number of children in the family. The provision continues - Where the family income would by the issue of a certificate of endowment be increased beyond the aggregate mentioned in paragraph of sub-section two of this section the certificate shall be issued for such an amount only as will with the amount of the family income for the .twelve months immediately preceding the date of the claim amount to that aggregate. What the honorable member for Reid chooses to describe as a " so-called Labour Government " now provides child endowment at the rate of 7s. 6d. a week, regardless of the income of the husband, the wife or the family, whereas under the New South Wales act of 1927, the income of the family included the income of the husband, the wife and children, and any money received through investments. 574 009MC UAP; LP from 1944 0 0 HOLT, Harold Mr HOLT - A Nationalist Government was responsible for the introduction of that legislation and of the principle of endowment irrespective of means. 574 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - I do not question that, but I point out to the honorable member, who himself had the great honour of introducing the child endowment legislation in this Parliament, that it did not occur to him that endowment should be paid in respect of the first child. 574 009MC 0 0 HOLT, Harold Mr Holt - lt did. 574 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - Then why was provision for such payment not embodied in the legislation? I remind the honorable gentleman that the Government of which he was a member had a majority in this chamber and in the Senate and that if what he says be true there was no conceivable reason why the first child should not be endowed. 574 009MC 0 0 HOLT, Harold Mr Holt - If the honorable member will read my second-reading speech on the introduction of the child endowment legislation he will see therein a clear statement of reasons why we found it im practicable to endow the first child at that time. 574 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - Let us now consider widows's pensions another piece of legislation for the pioneering of which the honorable member for Reid deserves great credit. In that legislation also was included a provision covering the means test. Under the New South Wales act, a widow was not entitled to a pension unless she was in destitute circumstances. If the honorable member will examine the provisions of the Widows' Pensions acts passed by this Government he will find that the provision governing the application of the means test included therein is infinitely less restrictive than that in the legislation of precisely the same kind which had been placed on the statute-book of New .South Wales by the Government cf which he was the leader. It is easy to say that the Opposition is in favour of abolishing the means test, and I, the honorable member for Reid, am in favour of abolishing it; but does the honorable member for Reid concur with honorable members opposite in the means by which they propose to finance the abolition of the means test? I do not know whether he proposes to make good the deficit from revenue; but I do know that during the recent election campaign the Leader of the Opposition (Mr. Menzies) made it clear that attached to his proposal for the abolition of the means test was a proposition for compulsory national insurance. I believe that the Leader of the Australian Country party (Mr. Fadden) concurred in that proposition. 574 F4T 0 0 FADDEN, Arthur William Mr Fadden - I did no such thing. 574 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - Am I to understand that the Leader of the Australian Country party did not concur in that proposition ? 574 F4T 0 0 FADDEN, Arthur William Mr Fadden - I shall tell the honorable gentleman when I speak. 574 L08 0 0 ROSEVEAR, John Mr ROSEVEAR - I am very sorry if I linked the Leader of the Australian Country party with the Leader of the Opposition in a matter of policy. I should like to know whether the honorable member for Reid, having pointed out that the Opposition and he concur in the proposition to abolish the means test, concurs also with the Opposition in the means by which the Opposition proposes to finance the abolition of the means test? If he does, he is in favour of an entirely new and additional scheme of taxation in the guise of a compulsory contribution to a national insurance fund. If he does not, there is only one other way in which he can finance any scheme which involves the abolition of the means test. Governments cannot get money out of thin air. There is only one means by which governments can get revenue, and that is by taxing it out of the people. It is interesting to know just exactly what the abolition of the means test would mean in pounds, shillings, and pence to the Government. Under existing conditions old-age pensions cost £24,000,000 annually, but without a means test that cost would be increased to £62,000,000. Invalid pensions cost £5,000,000 annually, but without a means test they would cost £7,000,000. Widows' pensions cost £3,400,000 annually, but without a means test they would cost £7,900,000. Sickness benefits cost £5,000,000, annually, but without a means test they would cost £6,500,000. Other social services cost £39,400,000 annually, and without a means test they would cost £39,400,000. Thus we get a picture of exactly what the abolition of the means test would mean. Social service benefits- of all classes now cost £76,800,000, annually, but without a means test they would cost £122,800,000 or £46,000,000 more. But we cannot have it both ways. The honorable member for Reid cannot talk about drastic cuts in taxes on the one hand, and advocate increased expenditure to the degree of £46,000,000 on the other. And, since we are just managing to balance the budget now with the aid of loans, it would be interesting to hear some advocates of the abolition of the means test tell us just exactly how they propose to abolish the means test without inflicting further taxes upon the people of this country. We know how the Opposition would do it. Honorable members opposite declared their policy at the recent elections. They would do it by introducing a new form of taxation in the guise of compulsory national insurance; but I should be interested to know exactly how the honorable member for Reid would finance the additional £46,000,000 that would be required if the means test were abolished. I said previously that I would answer those people who, to-day, are advocating the means test; and I shall be no more sparing on them than they have been on the Government. I have been a member of this Parliament for fifteen years. The only occasion on which honorable members opposite, or the parties which they have supported in the past, have tackled the means test with respect to invalid and old-age pensions was in 1933. That was the only time they ever tackled it, and the way they tackled it then was in these circumstances : pensions had been reduced to 17s. 6d. a week. They amended the invalid and old-age pension legislation in 1933 by providing that even if a pensioner earned 6d. a week, that amount had to be deducted from the pension. Pensioners progressively lost their earnings by corresponding deductions from their pensions up to an amount of 2s. 6d. and as a result they found themselves receiving a pension of 15s. a week with a 12s. 6d. means test. Those governments went further and provided that from the date of the passing of their amending legislation until the death of a pensioner all pensions were to be a charge against the pensioner's estate upon death. These are the people whose hearts bleed to-day for the aged and infirm. In 1933 that was the only way governments which they supported attempted to deal with pensions from the point of view of the means test. They sought to rob the dead in order to achieve their objective. But to-day their hearts are bleeding for the pensioners. There was a means test applied in New South Wales by the Government led by the honorable member for Reid, in respect of unemployment relief. I know of no more iniquitous means test than was applied on that occasion, because the income of not only the father, but also the wife and all members of the family, was taken into consideration at the dole office in order to determine whether applicants should be given any work, or food. In order to ensure that the means test was properly applied a questionnaire was issued. Some called it the " famous questionnaire ". The unemployed called it infamous; and on some occasions when they gathered together they burned the questionnaires as a demonstration against their issuance ; and because they burnt them their "families were deprived of food for a fortnight. That was the means test applied by the Lang Government in 1931. Jobs were advertised. Men had numbers like inmates of a prison. The jobs were advertised in the Sydney Morning Herald. When the unemployed did not have the price of the Sydney Morning Herald each day to see whether their numbers were advertised, and, as a consequence, they missed their call-up, they and their families were again deprived of the miserable pittance of food which was given to them under those unemployment regulations. In order to ensure that there was no escape from the means test, the honorable member for Reid who now talks, as he has talked in the past, so glibly about the abolition of the means test, appointed 90 dole inspectors whose job it was to crack the unemployed down. I know, because I was among the unemployed at that time. Those inspectors went into the people's homes first thing in the morning to count the beds in order to see how many beds were slept in the previous night and to determine whether the father of the family was collecting too much dole or getting extra food to feed his family. Those are truths. I know that they are truths, because I was there amongst it. I tell the honorable member for Reid that when he comes here talking about treading on corns ad lib and treads on my corns and tells me that I am not as good a Labour man as he, by God, he is looking for trouble, and is going to get it. Any one who comes into this chamber in a truculent mood and insults men who have been associated with the Australian Labour party and the industrial movement for a lifetime by telling them that they are " so-called Labour men ", but not Labour men, because they do not .see eye to eye with him, is looking for trouble and is bound to get it. The honorable member for Reid was my friend. He would still be my friend politically if he was still in the Labour movement, but he is now no more a friend of mine politically than the right honorable member for North Sydney (Mr. Hughes) who ratted on the Labour party in 1916. I say pointedly to the honorable member for Reid that on a thousand occasions I have heard him proclaim from the public platform and at Labour conferences that if ever the day came when the press of this country lauded him and featured him and the Opposition applauded him, he would no longer be a Labour man. I ask him to look around at his newfound friends. 576 KNX Wentworth UAP; LP from 1944 0 0 HARRISON, Eric Mr HARRISON . - I have been intensely interested in this debate. We have followed with some interest the remarks made by the honorable member for Reid (Mr. Lang) since he has been a member of the Commonwealth Parliament. 576 KCF 0 0 DEDMAN, John Mr Dedman - Why the sudden interest in him? 576 KNX 0 0 HARRISON, Eric Mr HARRISON - I say to the Minister at the outset that I carry no brief for the honorable member for Reid. Indeed, I have crossed swords with him before to-day and said things about his political record comparable with those said by the honorable member for Dalley (Mr. Rosevear) who, disregarding the traditions associated with his exalted position as Mr. Speaker, came into the chamber to-night to attack his old master. I have no admiration for the political record of the honorable member for Reid. It is a record that will not hear investigation. I am surprised that, when the honorable member attacked the Government, not one senior Minister, not even a junior Minister, had the courage to rise to refute him. What do we find instead ? The Government put up a young, inexperienced junior, the honorable member for Perth (Mr. Burke), a man who knows not Israel and is a suckling in political matters, to carry the brunt of this wonderful Labour Government's refutation of the attack made on it by the honorable member for Reid. Then we heard the honorable member for Dalley make a most bitter personal attack on the honorable member for Reid, knowing that, when in the Speaker's chair, he will be protected by his exalted position from being attacked in return. I can place no other interpretation on the honorable gentleman's actions. To attack another honorable member in such terms as did the honorable member for Bailey and then take cover is despicable in every sense. Let me glance over the records of some honorable gentlemen opposite. I was elected to this Parliament in 1931 when the honorable member for Dalley also was first elected. I remember him, the honorable member for Lang (Mr. Mulcahy), the then honorable member for West Sydney, Mr. Beasley, the honorable member for East Sydney (Mr. Ward), and the honorable member for Hunter (Mr. James) occupying seats on this side of the chamber as members of " the Lang party ". They supported by word and deed every action of the then Premier of New South Wales, Mr. Lang. The Lang party later adopted the alias " the non-Communist Labour party ", implying thereby that the official Labour party was a Communist party. But when I look across the chamber what do I see? I see the seat that was until recently occupied by the then honorable member for West Sydney, a former Minister in both the Curtin and the Chifley ministries, and now occupying the honorable position of High Commissioner for Australia in the United Kingdom. I see the honorable member for East Sydney, an occupant of the treasury bench as Minister for Transport and Minister for External Territories. The honorable member for Dalley is Mr. Speaker, the occupant of the most exalted position that the House of Representatives can confer upon one o,f its members. I see the honorable member for Hunter filling some position or other that makes him a liaison between the Government and the coalminers. In that position he has all the privileges and perquisites of a Minister, including a motor car, all of which he usps to the full. The only member of the former Lang party who seems to be left out in the cold is the honorable member for Lang. He has not yet received his Judas's thirty pieces of silver, but his former colleagues have. We heard the honorable member for Dalley to-night in his attack on his former leader say that the honorable member for Reid took certain action about the wage tax, widows' pensions, f amily endowment, and the dole, in connexion with which, inspectors, he said, were appointed. Then he said, without identifying himself with the honorable member for Reid "I know it, because I was on the dele then ". What he failed to tell the committee and the country is that, although all those things ho complained about to-night had taken place, he joined the Lang party, and in this chamber, day in and day out, proclaimed " Lang is right ! ". Attacks upon the honorable member for Dalley and his Lang party colleagues were made by members of the official Labour party in terms much more bitter even than those used by the honorable member in his attack on the honorable member for Reid to-night. In those days, I listened to the honorable member for Batman (Mr. Brennan), the honorable member for Werriwa (Mr. Lazzarini), the honorable member for Melbourne Ports (Mr. Holloway) -a succession of honorable members of the official Labour party - 'condemn the honorable member for Dalley and his Lang party friends for having stabbed the Scullin Government in the back. Tonight, the honorable member for Dalley talked about the way in which the honorable member for Reid, as Premier of New South Wales, treated the Premiers plan. 1 remind him that he and the rest of the Lang party supported every action taken by Mr. Lang in the Parliament of New South Wales. Now they cannot find words bad enough to traduce him. Having been made politically by the honorable member for Reid, they turn round and rend him. When the honorable member for Reid torpedoed the Government in his speech on the Address-in-Reply, not only did the Minister for Post-war Reconstruction (Mr. Dedman), who was in the House, fail to reply on behalf of the Government, but also he failed to take the obvious course of adjourning the debate to enable a reply to be prepared. The Attorney-General (Dr. Evatt), too, was also in the House, and failed to realize the importance of the occasion but in a passage-at-arms, he and the Minister for Transport (Mr. Ward) traduced one another for having failed to rise. Where were the Ministers this afternoon when the honorable member for Reid again spoke? There was not a senior Minister in the chamber. The Minister for Post-war Reconstruction was conspicuously absent, as was the Prime Minister, the Attorney-General, and the Minister for Transport. I venture to say, however, that in the confines of their offices or in the party rooms they listened to the broadcast of the speech, cowering in their corners under the lash that was plied across their backs. They were not game to come into the chamber to answer the charges made by the honorable member for Reid. Instead, they put up the innocent young honorable member for Perth, who has not even cut his milk teeth in politics, to reply on their behalf. Then followed the honorable member for Dalley, who, as Speaker of this House, knew full well that he would be immune from criticism by the Opposition when he was in the chair. He demeaned his position by making a personal attack on .the honorable member for Reid. I have nothing further to say on this matter. It is a sorry incident, which demeans Parliament and certainly does not add prestige to honorable members opposite. I should be interested to hear a senior Minister answer the charges made by the honorable member for Reid, without (resorting to personalities. The 'honorable member did not make any personal observations about honorable members opposite. Upon reflection, perhaps certain senior Government supporters are not courageous enough to make even a personal attack upon the honorable member for Reid. Perhaps he knows something of their records. That may have been what prompted the Government selection as its spokesman a young lad who has no political record of any moment, and of course the honorable member for Dalley, who cannot be attacked when in the chair. Let us find a Minister courageous enough to stand up and challenge the honorable member for Reid. Then perhaps we shall hear something of moment in this debate. The honorable member for Perth referred to the sales tax, and I shall deal with that matter shortly. First, I shall deal with the claims of honorable members opposite in regard to the Government's determination not to make any promises of reduction of income tax during the last election campaign. "We have heard successive Labour leaders referred to as honest men. There was " Honest Jim Scullin", "Honest Jack Curtin" and " Honest Ben Chifley ". I have no reason to doubt the persona] integrity of honorable members opposite but when they say that they will make no promises, and then we find that in newspaper advertisements promises are made over their names - promises that they are not prepared to carry out - we must question their political honesty. For instance, an advertisement was published in the Daily Mirror of Thursday, the 19th September - right in the throes of the election campaign, when Labour was suffering from defections caused by the policy speech of the Leader of the Opposition promising reduced taxes, and honorable members opposite were thinking, "We .must do something to counteract this. We must make some promises ". The advertisement is headed " Labour will reduce taxation, ". The fact is, of course, that Labour is pledged to reduce taxes. Therefore, the sooner honorable members opposite decide to support the amendment moved by the Leader of the Opposition the sooner will they honour the promises made during the election campaign. 578 KVT 0 0 THOMPSON, Albert Mr Thompson - What does the advertisement say? 578 KNX 0 0 HARRISON, Eric Mr HARRISON - It makes the bald statement in large headlines, " Labour will -reduce taxation ". It then states, " Australia knows what Labour promises, Labour performs ". Government SUPPORTERS. - Hear, hear ! 578 KNX 0 0 HARRISON, Eric Mr HARRISON - Honorable members opposite say " Hear, hear ! " ; but we shall see how they will vote on the amendment which would give effect to their promises. The budget is, of course, a barometer by means of which the Government can indicate to the people whether the future is to be "mild", "fair", or "stormy". In his budget speech, the Treasurer (Mr. Chifley) made it quite clear that he was aware of the difficulties likely to confront the Government in the coming year. If he is aware of them, I cannot understand why he has produced a budget which, in its very essence, as the honorable member for Reid said, is dishonest. It does not portray in truth the position that exists to-day, nor does it portray the economic position in which we shall find ourselves in the coming year. The Government's budget proposals can only serve to aggravate the conditions that the Treasurer fears, and of which he spoke with bated breath in his policy speech. The Treasurer said - Production is rising in most fields due to increasing civilian employment. That is only a half truth. There seems to be some increase of production due to increased civil employment, but what the Treasurer has not told this country is that production per man hour is unfortunately decreasing, in industry. Let me give some examples of that. I have taken out certain figures in relation to production in the coal mines, and wages and salaries paid in the industry. I find that between 1940 and 1944, salaries and wages in the coal-mining industry rose from approximately £3,900,000 a year to £6,300,000 a year or 61 per cent. But only an additional 62 men were employed in the mines. In the same period, the output per man-day decreased from 3.40 tons to 3.09 tons, or 9 per cent. I propose now to refer to the decline of man-effort on the waterfront. This afternoon, I asked the Minister for Commerce and Agriculture (Mr. Pollard) a question relating to the effect of the strikes in the United States of America on the transport of food to the United Kingdom. The honorable gentleman replied that the Commonwealth Government could not increase its efforts, because of the lack of shipping. Let ros examine the circumstances. On the 19th April, a report was made to the Prime Minister on a survey of conditions ' on the waterfront undertaken by shipping, stevedoring and transport interests. The report showed that despite the increase of gangs and mechanical equip ment, the extra time in voyaging and handling exceeded the pre-war figure by 50 per cent. The figures showed, also, that before the war, in Sydney, 34 tons per gang hour was loaded; but in 1946, the figure had dropped to 17 tons. Tn Melbourne, before the war, 35 tons per ganghour was loaded, but in 1946, the figure had declined to 12 tons. Honorable members will see that in one important industry, and in a service, production per man-hour has dropped to a considerable degree. The Prime Minister was guilty of stating a half-truth. He did not give to the House or to the country the facts that we should have in an honest presentation of the budget. The right honorable gentleman said that "production is rising in most fields ". He attributed that position to an increase of civil employment. He declared that " the danger of inflation is still present, as formidable as ever ". Then he emphasized the necessity for achieving a higher standard of efficiency and production. "What the right honorable gentleman, in his capacity as Treasurer, is unable to realize is that higher efficiency and productivity in all fields of effort in Australia will proceed only from greater opportunity and incentive. The royal Toad to this desirable condition of affairs is a substantial reduction of taxes, especially direct taxes, because in that lies the incentive to produce. The high levels of taxes deter salary and wage earners from seeking an increase of their earnings through greater productivity. In Australia last year, receipts from taxation mounted to £50 per head of the population, which was twice as much as that collected in the United States of America or Prance, and half as much again as that collected in Soviet Russia. We in Australia are the highest taxed people in the world. The Prime Minister declared that the only solution of the inflationary trends that appear to manifest themselves here, is greater productivity. However, the right honorable gentleman stated that he had no intention of giving- any incentive to the workers to produce more or to become more efficient. He referred to the danger of inflation. Of course, that danger exists. It is an elementary principle of economics that the trends which exist today reveal a danger of inflation. The danger, -however, arises when demand, in the main, exceeds supply. It is true that we have introduced certain economic controls. Whenever honorable members on this side of the chamber direct attention to the -fact that supply is not able to meet, the demand, we are met with a specious contention that price control is the factor which will govern the inflationary trend. But that is not the complete answer, because price control, in itself, is not able to prevent an increase of the ratio of payment which is made for commodities in great demand. Hence black markets arise. 580 L0F 0 0 RUSSELL, Edgar Mr Russell - But it is the principal factor. 580 KNX 0 0 HARRISON, Eric Mr HARRISON - The honorable member for Grey (Mr. Russell) knows that price control is not the only factor. The real problem is to produce more goods so that supply will equal the demand. When we reach that very desirable condition of affairs, we can forget about any inflationary trends which may be associated with post-war development. The supply of goods Will be increased if we give to the producer an incentive to expand his output, and if we reduce taxes. Then the worker will have more money each week to expend on the greater supply that will necessarily follow the incentive given to production. But what has the Treasurer done? In his budget, he has concentrated principally on the reduction of indirect taxes, especially sales tax. Strangely enough, his policy, by its very nature, will encourage additional purchases. If we reduce the pegged price of a commodity we shall encourage a greater demand for it. The person who desires to purchase an article and discovers that it is not available, is apt to seek it on the black market. The Treasurer's policy must increase the demand that is made upon a market which cannot supply all the required goods and therefore, accentuate the danger of inflation. The honorable member for Perth (Mr. Burke) asked the committee for leave to incorporate in Hansard certain tables of figures. When he described the nature of the 'tables, I had no hesitation in acceding to his request, because the statistics proved my contention. The honorable member said that indirect taxation 'falls upon the first £100 in the ratio of 11.9 per cent. I remind the honorable member that indirect taxes, such as -sales .tax and customs and excise, are -imposed upon such items .as petrol -and clothing, which are not absorbed by persons in the lower ranges of income to the same degrees as they are by .persons in the higher ranges of income. Therefore, the figure .of 11.9 per cent on the first £100 obviously would not obtain. No relief would be granted to the man in receipt of a small income by a remission of the petrol tax. The honorable member for Perth attempted to explain the obvious anomaly. He said that the reduction of the petrol tax would be reflected in a reduction of the expenses of business houses and in the consequent reduction of the price of their goods. Let us examine that statement. I assume that the honorable member referred -also to food stuffs. We have only to use a little arithmetic to realise that the remission of sales tax on 100 gallons of petrol represents Ss. 4d. To what degree could the cost of every article in a warehouse be reduced by that saving? Obviously the honorable member's contention was fallacious. He evidently endeavoured to satisfy his own political mind that remissions of indirect taxes are the most satisfactory way of reducing the burden on taxpayers, and to convince the Lbour party that he understands the Government's proposals. It is an established economic fact that the reduction, of indirect taxes benefits not the men on the lower Tanges of income but those who can purchase commodities, particularly in large quantities and to a great value. The controls about which Government supporters speak are not an effective barrier against the purchase of large quantites of luxury commodities, because black marketing is increasing. Notwithstanding legislation that the Government has passed for the purpose of curtailing such activities, it is completely powerless to control black marketing. The only way to control this, the most insidious of all rackets, is to make the supply of commodities equal to the demand. -Greater production is the only effective answer to black marketing, which has become a part of our national life. We have heard a great deal about the demand for increased wages. In this connexion, I was interested in the observations made by the Leader of the Opposition regarding the Prime Minister's recent visit to Melbourne. We know that industrial unrest to-day is due, in the main, to the dissatisfaction of the workers with their emoluments. We also know that, strangely enough, the Communist party leader in Melbourne announced that he would be able to guarantee to his members an increase of at least 10s. a week in the basic wage. Although the Prime Minister issued a denial, the fact is that permission was given for the unions to apply for an interim basic wage determination. My criticism is not directed against the reduction of sales tax or any other indirect tax or against a proper adjustment of the basic wage. I believe that ultimately there must be an upward adjustment of the basic wage, which has never been fixed in a relatively just manner. My criticism is directed against the government's fiscal policy, which, in addition to ignoring the one thing that is essential to restoring economic balance, also contributes to the unbalancing of our economy. The government's mania for maintaining high rates of tax was justifiably condemned by the honorable member for Reid. In spite of all known rules and facts associated with revenue and expenditure, it persists, for some reason which I cannot fathom, in maintaining the present extraordinary rates. This mania is clearly indicated by the Treasurer's deliberate underestimate of the income from taxes. I shall cite one or two examples to prove that he has under-estimated tax revenue The estimated yield from tax sources in 1945-46 was £343,000,000. Th2 actual yield, after a modicum of relief had been granted, was £358,000,000. That proves conclusively the truth of my argument that any reduction of taxation will make itself apparent in an increased yield, even from the lower rates that may be struck. The estimated yield for 1946-47 is £354,000,000, which is £3,670,000 less than the actual yield last year. These figures deserve close examination. In the present financial year, one of two things must happen. Either we shall not make the progress in employment and production which will have to be made if prevailing shortages are to he overcome - and in spite of the Treasurer's optimism I believe that we will not succeed - or the yield from taxation will .be more than is anticipated in the budget. In any case, if we do achieve greater productivity and greater industrial efficiency, the yield from taxation must inevitably be greater than is anticipated. During his budget speech the Treasurer said that we must lose no opportunity to increase our overseas earnings from exports of both primary and secondary products. That was a good round statement. But what arrant nonsense it is ! What has the Government been doing while production has been held up by the militant minorities controlling shipping, the mines, the iron, and steel industry, the engineers, the transport workers and other groups of unionists? What has the Government done to ensure that our former valuable trade connexions with the Netherlands East Indies shall be preserved, let alone extended ? Honorable members will recall how the Government gave in to the waterside workers when they refused to load Dutch ships. They will recall how trade orders worth £8,000,000 or more were cancelled by the Netherlands Government because the goods could not be supplied by Australia. They will recall, too, how that trade was diverted to the United States of America. And strangely enough, the very men whom the militantwaterside workers supported finally found their way back to Java from Australia and serviced the ships which operated between Java and America carrying the cargoes which should have been shipped, from Australia. Therefore, I say that these good round phrases of the Treasurer, though they may read well on paper and sound well over the air, have no meaning. The Government has done nothing to give effect to them. That is the supreme test of their sincerity. The Treasurer also said that we undoubtedly have the capacity to achieve much higher levels of civil production than we have achieved so far. Nobody doubts the truth of those words. Of course we have the capacity to increase production. Nor will anybody doubt the statement that " we must necessarily rely on industry and all who have a share in it. " I emphasize the words " all who have a share in it because they are significant. The Prime Minister, if he means what he says in this regard, will at long last seek to impose the rule of law in industry. If all who have a share in industry have obligations in industry, then they must be forced to carry out those obligations. I hope that this was not just another meaningless phrase, but something which the right honorable gentleman actually meant. However, I fear the worst. The honorable member for Werriwa (Mr. Lazzarini) has often said, " words mean what they say ". The words which 1 have mentioned are just words ; I do not believe that they mean what they say. If they did mean what they say we could look forward to the enforcement of industrial law by the Government lit long last. The facts are that the Government lacks both the vision to restore the incentive to production and the courage to ensure that all those who have a share in industry measure up to their responsibilities not only to themselves as an integral part of industry but also to the community generally. These men have a two-fold duty - a responsibility to themselves and to industry, and, in a democracy, a responsibility to the community itself. They must be forced to discharge their obligations. I want to make a few comments in regard to some industrial matters which I consider should be placed on record. I believe that the Government will 'never have the courage to enforce the rule of law in industry, and that the nicelyrounded phrases used by the Prime Minister were coined purely with a view to obtaining a party political advantage. Let us compare the industrial record of this Government and the Government of which I was a member. In 1939, there were 416 industrial disputes, which caused a loss of 459,000 working days. That was not an excellent record, and we were not proud of it. But in 1945, under the present Government, there were 945 industrial disputes which caused a loss of 2,000,000 working days. This resulted in a decline of national production, at a time when the country was just emerging from a war and the people were demanding to be supplied with goods of which they had been deprived for many years. That is the sorry record of honorable members opposite. I am concerned mainly with the action which the Government, seeks to take. Recently, the Prime Minister referred to the need for taking action against industrial saboteurs. These men, who burgle our national assets by going on strike, should be dealt with according to the law of the country. The criminal law is invoked against any one who burgles personal belongings, and the industrial law should be invoked against those who burgle national assets. Yet the Prime Minister has said - I have never felt that you could drive men back to work uy enforcing the law. The honorable member for Fremantle (Mr. Beazley), who came into this Parliament filled with high ideals, but with no practical knowledge of industrial matters, aped the Prime Minister by throwing his arms wide in an eloquent gesture and saying, "What can we do? What would the Liberal party do to get these men back to work?" I shall have a great deal of pleasure in posting to the honorable member a copy of the policy of the Liberal party, which states plainly the steps that we would take to ensure industrial peace. I remind him that the Government of New South Wales has every power that it needs to ensure the continuance of industrial production. It can order the taking of secret ballots, and can even institute criminal proceedings in certain circumstances. It has not the courage to insist upon compliance with its legislative enactments. How, then, can we hope that this so-called Labour Government in the Commonwealth sphere will have the courage to institute such action? The Prime Minister gives a lead to junior members who have not yet cut their political milk teeth. I instance in that regard the honorable member for Fremantle, who says, "What can we do? We are powerless ". I have never heard anything so absurd or ridiculous from a government which claims to represent the great trade union movement, as the statement that it is powerless to enforce the rule of law. What is the effect of industrial dislocation upon industry generally? Mr. Justice Davidson, referring to the appeasement policy which members of this Parliament know only too well, said in his report - Appeasement on the part of the Federal Government, yielding to improper demands by miners under threat of disruption of industry, is one of the main reasons for lack of discipline on the coal-fields. That was an indictment of the Commonwealth Government. Lack of discipline on the coal-fields results in loss of coal production. Loss of coal production results in loss of power, and that in turn results inloss ofproduction generally. The strike in December, 1945, caused the workers involved to lose wages aggregating £15,000,000. That does not take into account the loss of national production. Honorable members opposite do a great disservice to the working man by allowing a handful of men, led by their communist brethren, to hold up major industries, causing legitimate workers who do not desire to go on strike to lose wages aggregating £15,000,000. How does the Government seek to remedy the position? In the Estimates for 1946-47, provisionis made for an expenditure of £10,000,000 on unemployment relief. Money contributed to the Commonwealth by the taxpayers is to be used to pay men who are forced to strike. Answers given to questions asked by the honorable member for Moreton (Mr. Francis) disclose the growing demand on the unemployment relief fund. Why, with the employmentpolicy of which the Labour Party speaks so glibly, should it be necessary to provide £10,000,000 for unemployment relief. According to the estimate of the Minister who introduced the unemployment and sickness benefits legislation, every 1 per cent. of unemployment costs £2,000,000. The £10,000,000, therefore represents roughly 5 per cent. of unemployment in Australia. We know that these men are subject to the means test. Therefore, the degree of unemployment for which provision is being made is not 5 per cent. but 7 per cent. or 8 per cent. THE CHAIRMAN.- The honorable member's time has expired. Progress reported. 583 papers The following papers were presented : - Commonwealth Bank Act - Classification of Positions with Names and Salaries of Officers in the service of the Bank as at 1st July, 1946. Commonwealth Public Service Act - Appointments - Department - Labour and National Service - T. J.E. Laidlaw. Works and Housing - J. S. Smith, E. G. A. Weiss. National Security Act - National Security (General ) Regulations - Order - Control of elastic materials - Revocation. 583 22:58:00 House adjourned at 10.58 p.m. 583 ANSWERS TO QUESTIONS The following answers to questions were circulated: - 583 583 KZR 0 0 WHITE, Thomas Mr White e asked the Minister representing the Minister for Munitions, upon notice - In the merging of the Department of Aircraft Production with the Department of Munitions, will the merger prevent the retention by Aircraft Production of a direct approach to the Minister for forcing the Director of Aircraft Production to proceed through the permanent head of the Department of Munitions? Will the Director of Aircraft Production be chairman of aircraft committees or will such position be occupied by a munitions executive with the Director of Aircraft Production merely a member of such committees? Will major contractors such as Commonwealth Aircraft Corporation and De Havilland be permitted to go direct to the Secretary, Department of Munitions, over the head of the Director of Aircraft Production? As an effect of the merger, will trained and expert technicians and adminstrators be lost to the industry through the lack of appreciation of aircraft manufacturing essentials by the Department of Munitions? Will the Department of Munitions now control finance of Aircraft Production activities, so that opportunity to expand expert technical knowledge will be reduced? Was the merger of Aircraft Production under the Minister for Air discussed; if so, why was the merger not proceeded with? Will the forward programme (say for the next five years) of Aircraft Production be regarded by the Department of Munitions as something secondary having regard to the greatly retracted activities of the Munitions Department? 584 KCF ALP 0 0 DEDMAN, John Mr DEDMAN -r«-Th e Minister for Munitions has supplied the following answers : - The honorable .member is premature in assuming that there will be" a Director of Aircraft Production, and that the permanent hoad of the Department of Munitions will vary his customary practice of giving his officers free access to the Minister. The. Minister has not yet considered the organization to he set up for administration of the amalgamated department. Every citizen has a right of direct access to the permanent head of a department. The Minister is as air-minded as any honorable gentleman and will see that the aircraft industry will he maintained and developed in this country. The government is responsible for the finance of aircraft production activities, and there is no reason to doubt that the Department of Munitions will carry out the policy of the Government in that respect. The allocation of functions to the respective Ministers is a prerogative of the .Prime Minister. It is not customary for the Prime Minister to be asked whom he consults in exercising his prerogatives. The decision as to policy in respect of aircraft production or any other defence necessity is a function of the Government and not of a department. However, it can be that the present administration of the Department of Munitions placed aircraft production in the forefront of its recommendations as far back as 1919, but was not supported by the governments of the time in its efforts to have thu industry established. 584 584 KNX 0 0 HARRISON, Eric Mr HARRISON N asked the Minister representing the Minister for Supply and Shipping, upon notice - Is it a fact that a new power-house technique has been applied for the first time in Australia at the Balmain plant of the Electric Light and Power Supply Corporation Ltd. which will enable 3 tons of coal to produce as much electrical energy as 4 tons hitherto have done? li so, will he furnish the House with details of this new process? What steps has the Government taken to develop alternative fuels to coal, in view of the continuous coal shortage, and what progress has been made in this regard? 584 KCF ALP 1 0 DEDMAN, John Mr Dedman - The Minister for Supply and Shipping has supplied the following answers : - 1 and 2. The new high efficiency plant operating at the Balmain station of the Electric Light and Power Supply Corporation, is effecting a coal saving equivalent to 3 tons where 4 tons were required hitherto. As this power station consumes as fuel, a mixture of coal and coke breeze of varying ratios, it is not feasible to use for comparison purposes the usual figure of pounds coal per unit generated. A comparison between the older and the newer methods of power generation can be gauged by noting the heat released in the boiler plant in each instance to produce an electrical unit [a) newer methods (termed superposition) 14,500 British thermal units per unit generated, (6) older methods 10,500 British thermal units per unit generated. Assuming average quality New South Wales coal of 12,500 British thermal units per- pound, the above figures are equivalent to (a) 1.16 lb. coal per unit generated, and (5) 1.56 lb. coal per unit generated. Improved efficiency is achieved by elevating the steam pressure to 1,200 lb. per square inch, and the temperatures to 900 degrees F. in now boiler plant as compared to 225 lb. per square inch, and TOO degrees F. in. the older practice. A highpressure turbine receives the high pressure and tem'perature steam delivers to the previously existing turbines at pressures and temperatures for which they were designed. This method of improving the thermal efficiency of an existing station is termed super position for the reason that a high pressure plant is superposed with an existing lower pressure plant. Low fuel consumption is achieved at less cost than would be the case if a now high efficiency power station had to be constructed. The Railway Department is extending the use of diesel .oil in locomotives. Extensive investigations are being made regarding the further use of brown coals in Victoria and South Australia and furthermore the Coal Commissioner's Fuel Economy Engineer is at present abroad studying latest practices in these matters. TRADE Unionism. 584 KIX 0 0 HUTCHINSON, William Mr Hutchinson n asked the Prime Minister, upon notice - Did he receive on Tuesday, the loth October last, an urgent reply-paid telegram addressed to himself personally, from Mr. F. R. Mellor, of Blackburn, Victoria, asking him to safeguard the right to employment of every Australian citizen, irrespective ' of class, creed, colour, political or industrial affiliation or non-affiliation; in brief, protesting against compulsory unionism ? Will he state his views on this matter so that the honorable member for Deakin can acquaint Mr. Mellor accordingly! 584 A48 ALP 1 0 CHIFLEY, Ben Mr Chifley - The answers to the honorable member's questions are as follows Yes. As has been repeatedly announced in the Parliament, the Government has taken and is taking all steps possible to ensure full employment and a higher standard of living. The fact that full employment prevails' practically everywhere is a clear indication of the success the Government has achieved in this direction. 585 585 KXB 0 0 WATKINS, David Oliver Mr Watkins ns asked the Minister representing the Minister,, for- Trade and. Customs', upon notice - In view of the shortage of soft timbers in this, country for building and other purposes, what steps has the Government taken to counter the shortage by importation from other countries able to supply such timbers? 585 KYC ALP 1 0 POLLARD, Reginald Mr Pollard - The Minister for Trade and. Customs has supplied the following information : - The post-war. demand for soft woods,, particularly by war-devastated areas, is far in excess of world supplies and exports by producing: countries are rigidly controlled. Following on. recent negotiations with Swedish authorities- a reciprocal, arrangement has been made under which a limited quantity of Swedish soft, wood will ,be exported to Australia during the next few months. Recent representations have also been, made through official channels with a view to obtaining increased quantities and early shipment of supplies from North America. Efforts are being made to obtain shipping to lift approximately 400,000 super, feet of kauri logs from Vanikoro Island, and the possibility of obtaining supplies from Chile and Brazil are being explored. The supply position, is kept constantly under review and every effort is being made by the Government to ensure that Australia obtains its full share of available supplies. Licences are being issued for the importation of all quantities of soft woods made available by overseas suppliers for shipment to Australia but, in view of the world shortage of this type of timber, greatly increased imports necessary to meet all requirements in Australia cannot be expected. 585 585 009MC 0 0 HOLT, Harold Mr Holt t asked the Minister representing the Minister for Munitions, upon notice - What goods arc being produced in government munition plants for sale to civilian users? Where are these goods manufactured? What is the volume of production to date of each type of article? What tire the sales receipts for each type to date? 585 KCF ALP 1 0 DEDMAN, John Mr Dedman - The Minister for Munitions has supplied the following information : - I regret that it is not practicable to furnish the information in the detail requested by the- honorable member because that would involve disclosure of matters which affect the business transactions of a considerable number of commercial firms, and I am sure the honorable member would not ask that that should be- done. However,, the following statement, will show that for the nine months ended September, 1946, orders have been accepted by the- government munitions factories at Lithgow, New South. Wales, Footscray, Maribyrnong,, Bendigo and Echuca,. Victoria, and. Finsbury., South Australia, to the amount of £9.47,000, which can be grouped as follows-: - The sales receipts in respect of deliveries on account of the foregoing orders approximate £470,000. Thursday Island: War Damage. Mi-. Francis asked the Treasurer, upon notice - Has. his attention been drawn to an article in a Brisbane newspaper of the Sth November to the effect that residents of Thursday Island, have had to buy back articles of their furniture at double the price they received from the War Damage Commission? Is it a fact that the War Damage Commission in each case reduced the original claim with the result that the original owners find that their own tables for which the WarDamage Commission would not allow more than £1 or £1 10s. are being sold at disposal sales at £2 or £3? 585 A48 ALP 1 0 CHIFLEY, Ben Mr Chifley y. - The answers to the honorable member's questions are as follows : - No. Not so far as I am aware, but if the honorable member will submit details of any particular cases supporting the suggestion in this question they will be examined. Liquid Fuel: Search for Flow Oil at Lakes Entrance; Power Alcohol. 585 KCF ALP 1 0 DEDMAN, John Mr Dedman - On the 22nd November, the honorable member for Lilley (Mr. Hadley) asked .a question concerning the Lakes Entrance oil-field, the Nelson bore and the grain alcohol distilleries. The Minister for Supply and Shipping has supplied the following information : - Acting upon the advice of technical officers, the Governments of the Commonwealth and Victoria ceased operations at the Lakes Entrance oil project on the 9th May, 1946. Certain work is now being done there by private enterprise. The Nelson oil bore was taken down to a depth of 7,308 'feet, which was the limit of the capacity of the. drilling plant. As substantial expenditure would be required to obtain a drilling plant of greater capacity, it was decided to suspend operations pending the conduct of a geophysical survey. No production has been obtained from the four grain alcohol distilleries during the past twelve months. Owing to the shortage of supplies of wheat, the distillery at Cowra, in New South Wales, was the only one which could be brought into production, but this distillery was obliged to cease production in November, 1944, through lack of wheat. The total production from this plant amounted to 2,578,138 gallons of alcohol. Public Service: University Scholarships. 586 A48 ALP 1 0 CHIFLEY, Ben Mr Chifley y. - On the 20th November, the honorable member for Wide Bay (Mr. Bernard Corser) asked the following questions: - I ask the Prime Minister does the Commonwealth Government grant scholarships to young public servants tenable at the universities of Sydney, Melbourne, Adelaide, Perth, Hobart and Canberra, in respect of which full fees are paid by the Government? Are similar scholarships available at the University of Queensland, except that only half-fees are paid by the Commonwealth' Government? If so, what is the reason for such discrimination? The answer to the honorable member's questions are as follows : - By arrangement with the several Australian universities and the Canberra University College, free places in courses leading to a degree or diploma are granted annually to a limited number of officers of the Commonwealth Public Service in the universities in Sydney, Melbourne, Adelaide, Perth and Hobart, and the University College in Canberra. Assisted places are granted in the University of Brisbane. The scheme provides for the payment by the board, on behalf of the Commonwealth, of 50 per cent, of the fees for lectures, practical work and examinations, in the case of each university, the remaining 50 per cent, to be waived by the university. The University of Queensland has been unable to see its way to waive in these case3 any portion of the prescribed fees, with the result that it is necessary for an officer in Queensland to undertake responsibility for the payment of the proportion of the fees which in other States is waived by the university. Food for Britain. 586 BV8 ALP 1 0 CALWELL, Arthur Mr Calwell l. - On the 21st November, the honorable member for Parramatta (Mr. Beale) asked the following question : - Persons sending food parcels to Great Britain often find it difficult to pack them securely to the exact weight prescribed in thescale of charges issued by the Postmaster-General's Department. Will the Minister representing the Postmaster-General endeavourto have this scale of charges amended to conform with normal, postal practice, that is, bycharging at a rate per pound or ounce, and not. by weight groups, which, by their nature, frequently penalize donors whose parcels exceed the set weights by a few ounces. The Postmaster-General has suppliedthe following information : - The basis under which parcels come within, three weight groups, that is, 3 lb., 7 lb. and 11 lb., is in conformity with international practice generally. The system is designed tokeep the charges at the lowest possible level and to avoid confusion through a multiplicity of rates. The existing charges are framed on a low and favorable scale, having regard to thecosts incurred, by the Australian Post Office in the handling and transportation of parcels and the proportion which must be credited to theBritish Administration to cover delivery to addressees in the United Kingdom. In the circumstances, the Postmaster-General regrets that the way is not clear to alter the basis of charging for parcels at this stage. Postmaster-General's Department : Marnoo Post Office - Accommodation fob Employees; Telephone Services; Loss of Mail Matter. 586 BV8 ALP 1 0 CALWELL, Arthur Mr Calwell - On the 22nd November the honorable member for Wimmera (Mr. Turnbull) asked the following question : - On several occasions, without success, I have brought to the notice of the Postmaster-General the need to provide better accommodation for employees at the post office at Marnoo, Victoria. Now, in a recent report, the local Medical Officer for Health, Dr. J. E. Thomas, states - The Marnoo post office was inspected by the shire health inspector. It was noted that the rear room at the back of the post office, size 10 feet by 12 feet approximately, was used to accommodate a switchboard and to provide sleeping accommodation for the male operator on night duty. In the day-time the switch is operated by a fema'le telephonist. The accommodation is far too small for the purpose, the ceiling is too low, and there a're no adequate sanitary conveniences for both sexes. The Postmaster-General has supplied the following information: - The Marnoo post office, which is of non-official status, is conducted in premise.? owned by the Commonwealth. The volume of postal transactions is relatively small, and the facilities afforded the public are considered to be adequate to meet present-day requirements. The room in which the telephone exchange is located measures 13 ft. 4 in. by 9 ft. 5 in. with a 10-ft. ceiling, and it was considered that the accommodation was ample for the purpose. The matter of improving and extending the premises is being reviewed in the light of the representations made by the honorable member, and of the report furnished by the local medical officer for health. At the same time, the adequacy of the sanitary conveniences is being investigated, and additional facilities will be installed should the circumstances justify this course. Due to the severe restrictions which have been imposed in past years on postal building works, the department is now faced with a huge programme of essential projects which must be completed in the interests of an efficient service and the welfare of the staff. The justification for erecting a new post office building at Marnoo is not apparent at this stage, having regard to the Amount of business offering and the status of the office. The honorable member may be assured, however, that when the review has been completed any steps which are necessary to meet the requirements of the public and the staff at that place will be implemented as quickly as possible. On the 22nd November the honorable member for Batman (Mr. Brennan) asked the following question: - Til view of the fact that adequate materials are not available to meet applications for installation of telephones, will the Minister representing the Postmaster-General ascertain whether any order of precedence is followed in dealing with such applications? The Postmaster-General has supplied the following information : - In those areas whore it is not practicable to provide a service for all waiting applicants an appropriate system of priorities is followed which ensures that precedence is given to' those cases where the service is most urgently needed. For example, preference is given to applications lodged by government departments, public undertakings, medical, ambulance and hospital services. A measure of preference is also accorded to applications for business telephones associated with housing industries and also applications where there is serious illness in the house and to expectant mothers. On the 20th November, the honorable member for Hume (Mr. Puller) asked the following question: - Will the Minister representing the Postmaster-General consult with his colleague with a view to expediting the supply of materials urgently required for the installation of the thousands of telephones in town and country districts for which applications have been made ? The Postmaster-General has supplied the following information: - Every possible step is being taken to speed up the supply of essential materials for the installation of telephones in town and country districts. Substantial quantities of all classes of equipment arc being obtained from local manufacturers, and these supplies are being augmented by orders from overseas. As the material comes to hand, urgent steps are being taken to have it installed so as to reduce as quickly as possible the arrears which have developed as a result of the war. On the 21st November the honorable member for Balaclava (Mr. White) asked the following question: - I have received complaints from those fortunate enough to obtain telephone connexions, some of them medical men, that their names do not appear in the telephone directory, the stated reason being that the books are issued only once a year. They have expressed the opinion that supplementary lists should be issued. I have taken the matter up with the Postmaster-General, and he said that, because of the shortage of paper, and because no one would look at the supplementary lists in any case, it was not proposed to issue them. 1 now ask the Minister representing the Postmaster-General to convey to his colleague that this refusal is unbusinesslike and that in the main cities, at least, supplementary lists should be issued. The Postmaster-General has supplied the following information: - The publication of supplementary lists is not favoured by the post office, as experience with such lists when they were issued some years ago showed that generally the lists were rarely referred to by subscribers, who in many cases did not even retain them. The Postal Department is investigating the practicability of publishing complete issues of the directories at half-yearly intervals, but this is dependent on sufficient supplies of paper being available. Unfortunately, there is a serious shortage of paper throughout the world, but the honorable member may be assured that the matter is being kept under close review by the department with the object of reintroducing half-yearly issues as early as practicable and thereby meeting the requirements of telephone subscribers in a more satisfactory way than by the issue of supplements. In the meantime, arrangements have been made for a complete issue of the telephone directories to be published in February-March, 1947. On the 21st November, the honorable member for Flinders (Mr. Ryan) asked the following question : - On the 11th November, a mailbag containing papers of consequence was stolen in the Frankston area. I do not suggest that this is other than an isolated instance, but I ask the Minister representing the PostmasterG'eneral whether, in such cases in future, the department will make a public notification of the loss, so that the people concerned may have warning that papers in which they are interested may not reach their destination? The Postmaster-General has supplied the following information: - The case referred to by the honorable member related to a mailbag which was despatched from Seaford to Melbourne on the evening of the 11th November, but which was not received at the General Post Office. Investigations have failed to locate the missing bag, but the inquiries are still proceeding. The senders of registered articles included in the mail have been advised of the occurrence. In Future, a public announcement will be made, as suggested by the honorable member, where a mail bag is stolen during the course of transmission, although, fortunately, instances of this nature are rare. Wah Decorations. 588 KCF ALP 1 0 DEDMAN, John Mr Dedman n. - On the 14th November, the honorable member for Balaclava (Mr. White) asked whether, in the light of a press report of a statement by the Minister for Repatriation that service in Great Britain in either of the wars would be regarded as service abroad for repatriation purposes, the cases of certain members of the Australian forces who served in Great Britain in the 1939-45 war, but who were declared ineligible for decorations, would be re-opened. I have since had an opportunity to examine this matter. I presume that the honorable member has in mind the proposed award to ground staff members of the Royal Australian Air Force and certain Army personnel who served in the United Kingdom, of the 1939-45 Star, which is granted for service in operations. The position is that these members of the Australian forces are eligible for the award of the Defence Medal and the War Medal. As regards the 1939-45 Star, 1 point out that the award of campaign stars is part of an Empire scheme. When the Commonwealth Government originally put forward its reservation that the United Kingdom should be regarded as an operational area for the 1939-45 Star the United Kingdom Government replied that, if this reservation were accepted, it would be almost impossible to withhold the extension of the star to the great numbers of troops, &c, stationed in the United Kingdom who took part in the defence of that country in one way or another, and that such extension would deprive the star of its value as an operational award. The United Kingdom Government also pointed out that the proposal would involve the award of the star to large numbers of United Kingdom forces who had gone overseas from Great Britain to non-operational areas, such as India and West Africa, and added that the conclusion had therefore been reached that the best solution would be a medal rather than a star, and that with these considerations in mind the proposal for a Defence Medal was put forward. Further representations were subsequently made to the United Kingdom on the matter, it being pointed out that failure to accept the Australian reservation would operate unjustly in the case of the Australian forces, in that those who were stationed in the United Kingdom throughout the greater portion of the war and who voluntarily enlisted for overseas service would thereby be excluded from any operational award. The United Kingdom Government replied that the question had been considered on a number of occasions, but that the conclusion had been reached that it would not be possible to recommend the award of a campaign star for service in the United Kingdom, and that such service could best be recognized hy the award of the Defence Medal. The United Kingdom Government mentioned that f urther consideration had been given to the position of non-aircrew personnel of operational commands who had served in Great Britain, but that it had been felt that since the existing scheme had been published for a considerable time any such extension of the award of the star might have too adverse an effect on the value of campaign stars in the eyes of the services and the public. In view of the apparent difficulties of implementing the Australian reservation, and bearing in mind the fact that service in the United Kingdom would qualify for both the Defence Medal and the War Medal, the Government, on the recommendation of its service advisers, agreed to withdraw the reservation. Commonwealth Disposals Commission: Motor Vehicles. 588 KCF ALP 1 0 DEDMAN, John Mr Dedman n. - On the 21st November, the honorable member for Wentworth (Mr. Harrison) asked a question concerning a consignment of vehicles on the vessel Eastern. The- Minister for Supply and Shipping has supplied the following information.: - Sixty-six of the moat valuable of the motor vehicles-' on the Eastern are- the property of the Commonwealth Government, having been consigned by the Commonwealth Disposals Commission from army park at Rabaul to Sydney, where they are being sold by the Commission to governmental and other authorities. In regard to other vehicles of lesser value) the Commonwealth Disposals Commission has been faced with a problem of obtaining some reasonable return to Treasury for. huge stocks of surplus goods from the New Guinea area. In the first place., the commission met the entire needs of the area itself by sales to. New Guinea Administration, to missions, to mining companies; planters and others, and, in addition, through the Production Control Board, which is a branch, of the Department of External Territories, reserved an adequate number of vehicles and other equipment for the needs of planters and others who have not yet returned to the. islands. Additional, stocks are now being sold by auction at. Lae, Rabaul, Port Moresby and other areas. Large percentage of stock, taken over from- the Department of the Army, which totalled no less than 14,000, was in a wrecked or semi-wrecked condition, many of these wrecks having been abandoned by the armed forces. Others were in the areas like Wewak, where there is no wharf and no shipping, and the- only means of getting vehicles out of the island is by cannibalizing them for any spare parts that may have a value after taking freight and handling costs into consideration. It is correct that some of these wrecks were sold for as' low as 38s'. each, as and where they are in- the New Guinea jungle; this as an alternative to obtaining nothing for them and of writing them off as complete loss. The freight on a three ton lorry from New Guinea ports ranges from £150 to £200. The coiling price on the majority of these vehicles in Australia is approximately- £200. An previously stated, vehicles sold at low prices were merely wrecks and; wrecks of war' department type vehicles, the commercial value of which, even though they were whole and in good condition would be comparatively small. The Commonwealth Disposals Commission after a close analysis of the position determined, it it, as a Commonwealth authority, brought the. vehicles back to Australia, the cost of freight' plus the cost of . repairs would total considerably more than their ultimate value on. the Australian market. If the honorable member, would like to examine the vehicles on board the Eastern, he will find that in all cases they are loaded to their limit with pieces of vehicles cannibalized by the buyers: The only vehicles which the buyer would bring to Australia as vehicles would be the better class ones for which considerably higher prices would have been paid to the Commonwealth Disposals Commission. There is- a vast difference between the cost to- the Australian- taxpayer of a. new truck in Sydney and Melbourne and .the. value to anybody of the remains of a wrecked- vehicle lying in the New Guinea jungle. The dealers who have brought vehicles back to Australia are required by prices control to sell within the ceilings fis determined by the Prices Commissioner and the only manner in which a profit can be made by buyers is, in view of freight involved, to load these trucks with parts cannibalized from lower-priced vehicles. The Commonwealth Disposals Commission is satisfied that, as a governmental authority, it would not be a payable proposition to undertake this task. As mentioned at- the: commencement of this statement, the Commonwealth Disposals Commission docs bring to Australia vehicles which are of sufficient value to warrant movement back to the mainland.