1948-09-24 18 2 1 REPS 861 0 House of Representatives 1948-09-24 Mr. DEPUTY SPEAKER (Mr. T. I. Clark) took the chair at 10.30 a.m., and read prayers. 861 question 861 861 KNX LPA 0 0 HARRISON, Eric Mr HARRISON —I am in receipt of information which is causing me some concern. If it be true, it reveals a sorry state of affairs; but if it be not true, the Prime Minister should be given an opportunity to refute it. Therefore, I ask the right honorable gentleman whether it is a fact that the names and addresses of applicants for permits for motor vehicles are passed on to the Commonwealth Bank by the Commonwealth authority controlhug the issue of such permits? Is it a fact that the Commonwealth Bank is using this information to increase its car finance business? Is there any truth in the suggestion that the names of those who seek to purchase cars are also being sent by this Commonwealth authority to the Taxation Branch in order to enable its officers to make a check on the purchaser's method of payment for a vehicle? Is it a fact .that a list of 19,000 names has been passed on by the peririit authority to the Commonwealth Bank? If so, does not the Prime Minister consider that this practice is in violation of the conditions applicable to the furnishing of confidential information, and is entirely unjustified? 861 A48 ALP 1 0 CHIFLEY, Ben Mr Chifley The Minister for Transport will answer the question. 861 KX7 ALP 1 0 WARD, Edward John Mr WARD —I have read the press report to which the Acting Leader of the Opposition has doubtless referred. That report is only partly true. There is no discrimination in favour of the Commonwealth Bank. Every motor distributing house has its own finance section and arranges its own group insurances, and the lists that were made available to the Commonwealth Bank were made available also to the State Chambers of Automotive Industries. They were all on an equal footing. What the complaint really amounts to is that prior to the Commonwealth Bank becoming interested in this form of business the finance corporations of the various motor distributors were charging 10 per cent. interest on advances in respect of second-hand cars and 8 per cent, interest on advances in respect of new cars. Since the Commonwealth Bank has come into the business, they have reduced their rates to 8 per cent. on advances in respect of second-hand cars and 6 per cent. on those in respect of new cars. But those interest charges are still much less favorable than the rates made available by the Commonwealth Bank itself, which charges a flat rate of interest of 4 per cent, on advances in respect of both new and second-hand cars. The bank also advances up to two-thirds of the amount required and extends the repayment over a period of three years. The bank's terms have become widely known to the people, and it is now writing up new business to the value of £700,000 each month. in order to show how favorably the scheme has been received by the public, I point out that I have been advised that even Liberal and Australian Country party members of this House have taken advantage of the terms offered. 862 862 KZJ Lang Labor 0 0 LANG, John Mr LANG Has the attention of the Minister for Works and Housing been directed to the plight of 88 families, which are being evicted from Hargrave Park, near Liverpool, New South Wales, and that emergency accommodation for them is inadequate? Will he consider giving the families priority in the matter of accommodation? Will the Government provide for these Australians hostels affording accommodation equal to that provided at Bathurst for newly-arrived immigrants? 862 L0X ALP 0 0 LEMMON, Nelson Mr LEMMON The provision of accommodation for persons in the situation described by the honorable member is the responsibility of the State Government. In the past, the attitude of the State authorities has always been generous and sympathetic, but, in the present instance, certain persons, influenced by Communists, have defied the Government, and have refused to pay any of the rent due by them. Because of their defiance, the State Government has taken action, which I fully support. It is strange that the honorable member for Reid, who is always attacking the Communists, should now take the part of persons whose defiance of the authorities has been inspired by Communists. 862 862 JPT Independent 0 0 BLAIN, Adair Mr BLAIN —I desire to ask the Prime Minister a question, and, by way of preface, I point out that I shall derive no pleasure from doing so. However, these are crucial times, and, bearing in mind the fact that so many men fought and died in defence of democracy, I am impelled to take this action. Can the Prime Minister say-1. Whether Bishop Burgmann, who has been appointed an adviser to the Australian delegation to the General Assembly of the United Nations in Paris, is the same Bishop Burgmann whose association with Communist bodies throughout the war was notorious? Is he the same man whose internment I said, when speaking in this House in 1941, might be necessary in view of his encouragement of the Communists anti-recruiting campaign? 2. Is he the same Bishop Burgmann whose name appears in the official list of officers of the Australian-Russian Society for 1948, as one of the three patrons of the society, the other two being Ilya Ehrenburg, an official head of the Soviet Union Foreign. Propaganda Bureau, and Dr. Hewlett Johnson, who was recently banned from entry into the United States of America because of his Communist associations? 3. In view of the fact that the Anglo-Russian Society has recently been declared by the executive of the New South Wales branch of the Australian Labour party to be a Communist body, with which Labour party members must not associate, will he inform the House whether Dr. Burgmann has resigned his office in the Australian. Russian Society, and repudiated its doctrines? 4. If not, how does he reconcile the bishop's appointment as an Australian official adviser to the Australian delegation, with the alleged principles of the Government, and the ruling of the Australian Labour party? 862 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY I know nothing of the subject about which the honorable member has asked so many questions, but I do know that Bishop Burgmann i a very distinguished prelate of the Church of England, and a very distinguished scholar. My own impression is that he is held in high esteem by the people of Australia, both as an ecclesiastic and as a scholar. The honorable member can address his other questions to other sources. 862 862 JPL 0 0 BLACKBURN, Doris Mrs BLACKBURN My question relates to such men, and women if there were any, as were called back to the Public Service during World War II., although they had passed the age of retirement. Thev did not seek re-employment with the Commonwealth, but were informed that their services were needed owing to the war-time state of emergency. I have been told that, in some instances, at least a part of the pensions rightly owing to those persons under the terms of the Superannuation Act was withheld. I ask the Prime Minister whether that information is correct. Should not steps he taken to ensure that every retired public servant who was required to return for service in Commonwealth departments shall receive the full amount of the pension due to him at the date of his retirement according to the terms of the Superannuation Act and irrespective of the salary paid to him for his extra service? If the act does not clearly define the position of persons recalled to work after the retiring age owing to a state of emergency, will the Prime Minister arrange to have it amended? 863 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY The question refers to certain retired public servants who were brought back to do special classes of work during the war. The rule in the Public Service has always been that, in such circumstances, the superannuation which would normally be payable shall he reduced to the amount actually contributed by the officer to the superannuation fund—usually about 50 per cent. The portion of the pension normally provided by the Commonwealth, through the Superannuation Board, is not paid during such period of re-employment. That principle has been upheld by all governments. f effect were given to the honorable member's suggestion, any re-employed person in the Public Service would receive not only a full salary, but also a full superannuation payment, probably half of which would be provided by the Corninonwealth. Proposals of that nature have been rejected by all governments. There have been many representations on this matter, but there is no likelihood of any change being made at present. In some instances, a great deal more thai 50 per cent, of the superannuation payments made to retired officers is contributed by the Commonwealth. This is the result of the comparatively recent inauguration of the superannuation scheme. Some retired officers draw more than 70 per cent, of their superannuation payments from. Oosolidated Revenue. Of course this will not happen in later years, as the age groups have changed over the period since the inauguration of the scheme. In the light of the circumstances which I have outlined, it would not be reasonable to expect the Government to pay a re-employed officer a full salary as well as a large proportion of his superannuation payment. 863 863 KDA ALP 0 0 DUTHIE, Gilbert Mr DUTHIE I ask the Minister for the Interior to inform me whether the Government has yet decided on the method of distributing the new ration books? If it has, will he inform me whether the distribution will be made through post offices or through electoral offices? If the Minister has decided to utilize the electoral offices, will the new ration books be issued at polling booths? I seek this information because several of my constituents have written to me on the subject? 863 K9G ALP 0 0 JOHNSON, Herbert Victor Mr JOHNSON At the moment, no final decision has been made, but the matter has been the subject of discussion between the Department of the Interior and the Department of Trade and Customs. It is expected that a decision will be arrived at early next week, and it will then be communicated to the honorable member. 863 863 KCA Country Party 0 0 DAVIDSON, Charles Mr DAVIDSON I desire to ask the Minister representing the Minister for Shipping and Fuel a question relating to the shipping service to the port of Gladstone. Previously, representations were made for the establishment of a reasonable service to that port, and it was considered some time ago that arrangements had been made to provide at least one ship a month for that purpose. I am now informed that no steamer has serviced Gladstone since May, and that in the intervening period, there have been at least four services to similar ports on the coast of Queensland. At present, Deamere, which is a government-owned vessel under charter to the John Burke Line of Steamers, is loading in Sydney, and should leave within a fortnight for Brisbane and Rockhampton. There are about 300 tons of cargo available in Sydney for shipment to Gladstone. Will the Minister immediately make every possible effort to influence those in control of Delarnere to include a call at Gladstone in the next trip? The Gladstone area has been sadly neglected in this respect in the *past, and deserves the service for Which I have asked. 864 KCF ALP 1 0 DEDMAN, John Mr DEDMAN If Detamere is under charter to the John Burke Line of Steamers, it will be rather difficult for the Government to step in and instruct the firm to include Gladstone in the ship's itinerary. 864 KCA 0 0 DAVIDSON, Charles Mr Davidson —The Government could make some representations to the John Burke Line of Steamers about the matter. 864 KCF ALP 1 0 DEDMAN, John Mr DEDMAN Whilst the Government Owns ships which are engaged in the interstate trade, private enterprise also has a responsibility to ensure that shipping is made available to meet the needs of ports like Gladstone. However, I shall ask the Minister for Shipping and Fuel to examine the honorable member's representations. If the Minister can do anything to ensure that, the 300 tons of cargo in Sydney is taken to Gladstone, I am certain that he will do so. 864 864 864 KRE ALP 0 0 SHEEHAN, Thomas Mr SHEEHAN Is the Minister representing the Postmaster-General in a position to inform me how many applications for telephone installations are outstanding? When may the applicants expect a service, and what is the loss of revenue per annum to the Postmaster- General's Department as a result of its inability to provide telephones? 864 BV8 ALP 1 0 CALWELL, Arthur Mr CALWELL —At this stage, I am not able to supply to the honorable member all the information that he has sought, but the position to-day is better than it was a month ago or twelve months ago. It is improving. every day, and the improvement will be accelerated when the Postmaster-General's Department is able to obtain more man-power and materials. The publicity section of the Postmaster-General's Department does effective work in supplying to honorable members from time to time information similar to that which the honorable momher for Cook has sought. Periodically, the department publishes the number of applications outstanding, the number of telephones installed in the preceding month, or two months, and the total of telephones in operation. I shall obtain the additional information for which the honorable member has asked, and supply it to him. I ask honorable members to take notice of the facts and figures that are given to them by the Postmaster-General's Department. If they do so, it will save a lot of time that is now taken up by answering questions on the matter in the House. 864 KWP Country Party 0 0 TURNBULL, Winton Mr TURNBULL I ask the Minister representing the Postmaster-General whether the rates of pay for junior postal officials are far inferior to those received by juniors in other positions? Does he know that a survey of the conditions of junior postal officers, conducted in Victoria recently, showed that 95 per cent. were being subsidized 'by their parents and 90 per cent, intended leaving their jobs unless conditions and wages were improved? Does he favour the following improvements, and will be endeavour to have them made.--Adult salaries at eighteen years; full cost of living adjustments on salaries earned by individuals aged under eighteen years; and an increase of all "away-from home" salaries to £208 per annum? 864 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY A similar question was asked last week by the honorable member for Bourke, and I replied to it at some length. The position, as I explained it then, is that the particular division which covers the employees to whom the honorable member for Wimmera ,has also referred, has been the subject of representations from their union. Consultations have also taken place between myself, as ministerial head of the Public Service Board and the chairman of the board. I understand that discussions are now proceeding, or are about to proceed between the union concerned and the Public Service Board, and, as I indicated last, week, 1 am anticipating that the board will make an early decision on the matter, though I am usable to say whether that decision will be entirely satisfactory to the organization concerned. 865 865 KFQ LPA 0 0 GULLETT , Henry Baynton Somer Mr GULLETT My question to the Prime Minister is prompted by the recent announcement that the Government is considering submitting to the Parliament a proposal that pensions shall be paid to ex-members of the Parliament. Before the House is asked to consider that proposal, will the right honorable gentleman appoint a committee to consider the whole basis of payments to war widows, totally and permanently incapacitated ex-servicemen, and blinded ex-servicemen? 865 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY A11 that has occurred in relation to the provision of retiring allowances for members of the Parliament is that the Parliamentary Labour party has approved of the principle and has referred to Cabinet the task of preparing a report and making an appropriate recommendation. The general principles of the Australian Soldiers' Repatriation .ct were formulated by a joint parliamentary committee, of which the Minister for Commerce and Agriculture was chairman and on which several honorable members opposite served very efficiently. 865 KFQ 0 0 GULLETT , Henry Baynton Somer Mr Gullett —That was five years ago. 865 A48 1 0 CHIFLEY, Ben Mr CHIFLEY I agree that the increase or otherwise of the payments which are made under the act are questions which have been determined by the Government since then, but the general principles of the act were decided by the committee to which I have referred. It is not likely that at this stage the Government will agree to the setting up of another joint parliamentary committee to consider payments. However, the honorable gentleman's question -will receive consideration. 865 KZR LPA 0 0 WHITE, Thomas Mr WHITE I preface my question by stating that, although the Prime i[inister and Treasurer said in the course of his recent budget speech that pensions, including war pensions, would he increased by approximately 10 per cent., apparently it is intended to increase -by only 5s. a week the pensions payable to totally and permanently incapacitated ex-servicemen, who are physically incapable of supplementing their pension by earning money. Such an increase 'would represent an effective increase to them of only 5 per cent. Will the Prime Minister examine the legislation which the Government proposes to introduce so as to ensure that the proportionate increase of the pensions payable to totally and permanently incapacitated ex-servicemen will be at least equal to that made to the pensiolis of civilians and other classes of ex-servicemen? 865 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY In the budget speech which I delivered some reference was' made to an increase of pensions by approximately 10 per cent., and I believe that the Minister for Repatriation, who is more conversant with the details of the proposed increases than I am, has placed before the House full information about the increases. Whilst, generally speaking, the proposals which are incorporated in the budget, which is now before honorable members, will be implemented in their present form in the legislation which has been introduced, I shall ask my colleague to re-examine the matter in order to ensure that there are no extraordinary anomalies. 865 865 JLR Country Party 0 0 ADERMANN, Charles Mr ADERMANN Local authorities in the country districts of Queensland are desperately short of road-graders. Will the Minister for Works and Housing review the present policy with regard to the granting of import licences -for engines to be used in road-graders of .the caterpillar type? I am informed that during this year -only seven of these engines will be allocated to Queensland. Lsuggest to the Minister— 865 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER —Is the honorable member making a speech or asking a question? 865 JLR 0 0 ADERMANN, Charles Mr ADERMANN —I am trying to explain the matter clearly so that the Minister will understand it. Will the Minister consider granting licences for the importation into Queensland of fourteen or fifteen of these engines instead of seven, so that at least the most deserving cases may be dealt with? Import licences are necessary only for the engine, because the -remainder of the machine is built in Australia. 866 L0X ALP 0 0 LEMMON, Nelson Mr LEMMON In consultation with the Minister for Trade and Customs. I shall consider the points which have been raised by the honorable member and infortn him of our decision. 866 866 JF7 ALP 0 0 BEAZLEY, Kim Edward Mr BEAZLEY On a number of oc(t8S.ionS I have received representations concerning youths who enlist in the Royal Australian Navy at eighteen years of age for twelve years, which means that they are bound to serve until they are 30 years of age. The young men are afraid that when they are discharged they will find their employment opportunities restricted ornpared with those of members of the civil population. In the absence of the Minister for the Navy, I ask the Minister for Defence whether the Government will consider introducing six-year terms of enlistment as well as twelve-year terms? Will the Minister give consideration to expanding opportunities for technical, trade, and professional training for seamen as an inducement to enlistment without forfeiting future security? Is the Minister satisfied that the present navy system gives adequate promotional opportunities to the lower deck? 866 KCF ALP 1 0 DEDMAN, John Mr DEDMAN It is true that men enlisting in the Navy are required to serve for twelve years. The period of enlistment was given full consideration by the Minister for the Navy and the Naval Board before a decision was made on it. However, I am quite sure that the Minister and the Department of the Navy will be prepared to review the situation to ascertain whether anything can be gained by reducing the minimum period of service from twelve to six years. At resent there is a wide variety of trades and occupations in which men may attain proficiency during their servic6 in the Navy, but again I assure the honorable member that if the Minister can find any method of widening the scope of the technical training of navy personnel to place them in a better position to compete for civilian work upon their discharge, he will be prepared to adopt it. I shall ask the Minister to consider the matters raised by the honorable member, and to supply him with full information on the subject. 866 866 JOI LPA 0 0 BEALE, Oliver Howard Mr BEALE Mr. Deputy Speaker, .1 wish to ask you a question arising out of an incident which occurred in the House yesterday. When the honorable member for New England, in the course of a personal explanation, sought to move that a certain document— 866 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER Order! What is the honorable member's question? 866 JOI LPA 0 0 BEALE, Oliver Howard Mr BEALE I can scarcely indicate the purport of the question without reminding you of the incident that occurred. 866 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER Order! That matter was dealt with yesterday under a ruling of the Chair. 866 JOI LPA 0 0 BEALE, Oliver Howard Mr BEALE That is not the matter to which I am referring. You will recall that a certain incident occurred. 866 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER —I have a faint recollection of it. 866 JOI LPA 0 0 BEALE, Oliver Howard Mr BEALE —I am sure you have. After you had ruled against the honorable member for New England, he moved dissent from your ruling, and his motion was seconded, I understand, by the honorable member for Warringah. The honorable member for New England walked up to you and handed you a paper on which he had written his motion of dissent. 866 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER Oder! I understand that the honorable member wants to ask a question. He must do so now or resume his seat. 866 JOI LPA 0 0 BEALE, Oliver Howard Mr BEALE My question now follows: Having presented the paper to you, nothing further was done on that motion— 866 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER Order! The honorable member will resume his seat. Later: 866 JOI LPA 0 0 BEALE, Oliver Howard Mr BEALE I rise to a point of order. .1 take exception to the fact, Mr. Deputy Speaker, that while I was in the middle of asking a question relating to the absence of any reference to a certain matter from to-day's notice-paper, you ordered me to sit down. I submit that—.--- 866 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER Order! The honorable member for Parramatta will resume his seat. The honorable member did not, as be says, proceed to ask aur question at all. He obtained the call so that he could ask a question, but be proceeded to make a statement and he knows that he is not entitled to make any lengthy statement in such circumstances. He may make a very brief statement in order to make his position clear. I warned the honorable member twice that he was proceeding on a lengthy dissertation, which the rules of the House did not allow, and as he continued in that strain I ordered him to resume his seat. 867 867 J7U 0 0 LYONS, Enid Dame ENID LYONS Did the Minister for Commerce and Agriculture see a recent article in the Sydney Sun in which a Dutch businessman, Mr. J. H. Ntonti, claimed that Japan was capturing ..ustralian trade in the East, notably in hardware and textiles? Can the Minister say whether this is a fact, and, if so, what steps can and will be taken to set the matter right? 867 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD I have not seen the statement to which the honorable member has referred, but I know that at present every surplus export food commodity produced in Australia is in demand, to a greater extent than Australia is able to supply it, by the United Kingdom and by dollar areas. 867 JPT 0 0 BLAIN, Adair Mr Blain What about the Japanese? 867 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD Hold your mug! Why does not the honorable member for the Northern Territory learn decent manners? 867 10000 0 0 DEPUTY SPEAKER, Mr Mr DEPUTY SPEAKER Order! The honorable member for the Northern Territory must remain silent. 867 KYC ALP 1 0 POLLARD, Reginald Mr POLLARD In addition, Australia has adequate export markets in the East and has a token trade there which will be a valuable factor in the future, when Australia may have a substantially greater surplus to send overseas to markets other than the United Kingdom and dollar areas. 867 budget In Corn,rniiiee of Supply: Consideration resumed from the 23rd September (wide page 858), on motion by Mr. OJEIFLEY— That the first item in the Estimates under Division No. 1—The Senate—namely, Sa)aries and allowance. £12,000 ", be agreed to. Upon which Mr. Hsnaisox had moved, by way of amendment— That the first item be reduced by £1, as an instruction to the Government— to withdraw and redraft the budget (vide page 430). 867 11.7 KIX Deakin LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON The ddeebbaattee on the budget affords to honorable members an opportunity to discuss a number of matters which concern theni apart from discussion of the general statement of Government policy contained in that document. In any event, the Government's policy, as revealed in the budget, has already been thoroughly examined and, I submit, completely discredited by the able analysis of it made by the Leader of the Australian Country party (:Mr. Fadden) in the course of his speech. I propose now to refer to a number of matters which were not mentioned by that right honorable gentleman, but first, i shall make a few general comments on the budget. At the outset let inc say that I have never read a documacnt which concerns the vital interests of the nation, which is more unreal than this budget presented by the Treasurer (Mr. Obifley). Aftçr all, a budget is suppoiod to be something in the nature of a show case to display the state of the nation's affairs, and it should furnish an impartial account of the Government's administration during the preceding twelve months, and some indication of its future policy. During a period of boom conditions the Treasurer has introduced a boom budget. He refers continually to the need for increased prodnetion. Of course, it is obvious to every honorable member that unless effective action is taken to increase man-power exertion we cannot expect any increase of production. The budget documents and the speech delivered by the right honorable gentleman savour more of political expediency, than any previous budget of which I have had experience. it is, in every sense, a pro-election year budget. It is impossible to disguise the fact that next year members of the political party opposite will indulge in one of the greatest bribery campaigns ever known in the history of Australian politics. The budget sets out to portray certain reductions of taxes. A study of the figures presented by the Treasurer reveals that, except in respect of one or two minor items, the right honorable gentleman expects to obtain greater revenue this year than last year. It is true that he proposes to reduce income tax by approximately £22,000,000; but what has made that reduction possible? The truth of the matter is that he will save £26,000,000 by the withdrawal of certain subsidies. The consumers who will be most affected by rising costs due to the withdrawal of those subsides are those on the lower incomes. Having saved £26,000,000 in this way the right honorable gentleman magnanimously proposes to reduce taxes by £22,000,000. 868 BV8 1 0 CALWELL, Arthur Mr Calwell By £26,000,000. 868 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON —As far as I c:i.0 see the reduction is to be aproximately £22,000,000 in this financial year. However, assuming the Minister's figure to be correct, all that the Treasurer proposes to give away is what he has already taken away by other means. Thus, there is to be no real reduction of taxes. The Treasurer also proposes to increase the rate of payment in respect of certain, social services; but, strange as it may seem, the only recipients of social service benefits who will not receive the proposed 10 per cent, increase are blinded and totally disabled ex-servicemen. The honorable member for Balaclava (Mr. White) asked a very pertinent question on that subject a few minutes ago which deserves a much more complete answer than that given by the Treasurer. These concessions are to be granted only to re store the purchasing value of the bnefits to what it was in the past. If costs are deliberately increased by the withdrawal of subsidii's, the whole structure of social service benefits is undermined. All that the Treasurer proposes to do is to endeavour to restore to some degree the purchasing value that has been lost. How is this proposal portrayed in the budget? Approximately £14,000,000 will be requiredto meet the additional cost, of social services; but the Treasurer proposes to balance his. budget in. this respect by raising a loan of approximately £17,000,000. In other words, additional social service payments are to be met from loan money. and, on the face of it, no attempt is made in this budget to meet expenditure out of revenue. Having regard to the fact that the Treasurer presented a balanced budget, last year, and taking into account the surface prosperity in the community. this budget is most unsound. On the surface it appears that, in it period of boom conditions, the Treasurer proposes to resort to the loan market in order to balance his budget; but we all are aware of the actual position. This year the Government will reap the benefli of the record cheques that came to Australia last year from the sale of our surplus wool, wheat and other exportable commodities. These returns will flow into this year's .budget. These moneys not only circulate among those personally interested but also throughout the community with the result that in the current year the Treasurer will receive additional revenue. The budget throughout is a masterpiece of deception. In fact the Treasurer proposes to give away nothing beyond what he will save by the withdrawal of subsidies. In the light of known facts' he anticipates a greatly enhanced revenue, which, I have n doubt, will -bet distributed to all and sundry in an endeavour to buy votes t ensure the Government's return to office' at the next general election. There is no national outlook in the Government. The approach to the budget is—" How does it affect me!". As long as the country is governed along those lines there will not be any real stimulus to production. Only by an increase of production can inflation be. prevented in this country. For some considerable time I have taken a. keen interest in Australia's production of foodstuffs and, to a lesser degree, gold and base metals. I am personally interested: in primary production and there are large gold-producing areas within my electorate. Wool figures are up this year, and we had a record wheat crop, but in nearly all other instances the' production of commodities which contribute to the wealth of the nation has fallen. The production. of meat, products has declined, and the decrease of butter production is alarming. According to the last figures published by the Commonwealth Statistician, dated the 14th September,, 1947; the prodijction of sugar has fallen. Gold, which is one of the greatest "dollar-spinners" we could' have, is alarmingly down, as also is silver. Lead is down, and copper production is at a low level. The figures do not indicate a very satisfactory state of affairs in this country. They certainly do not indicate that great prosperity exists, or that the social services provisions in Australia are on. a very secure and permanent basis. If honorable members were to examine the figures relating to most of our other industries also, they would find that production is lower because the output per man-hour is lower. 869 BV8 1 0 CALWELL, Arthur Mr Calwell That is not true. 869 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON There is no need for one to go to the coal-mines, or to the wharfs, or to an art gallery, to see exhibitions of still-life. Evidence of that state of affairs can be seen at the rear of Parliament House, where extensious are in course of erection. 869 BV8 1 0 CALWELL, Arthur Mr Calwell Will the honorable member go out and tell. the workers what he has implied in this chamber?. 869 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON Yes; but it is the Minister's job to do. it, not mine. 869 BV8 1 0 CALWELL, Arthur Mr Calwell —It would not be "still-life" for long. 869 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON If the Minister would have a look through the window near the job he would gain an idea of what is happening in every avenue of industry in this country. Let me now come to another subject which I shall call "Whither Australia ". After World War I. there was a great boom in secondary industries in this country. Such conditions obtained until 1922-23 when, to prevent our industries from collapsing, there was a universal cry for protection. Such a cry is again being heard in certain Industries to-day. Nearly all industries in this country were given very substantial protection. Indeed, without it many of the industries established during World War I. would have been forced to close- their doors and dispense with their emplOyees. Later, in 1927, the burden of that protection was. estimated at 8 per cent. of the. income of our export. industries. Subsequently, export values fell4 and we experienced, what is now known as, the great depression. Prices of our' primary products overseas collapsed and; our secondary industries depended almost entirely upon the domestic market. The, P.o$iton was that a ruined agriculture was carrying an 8 per cent. burden of secondary protection. In. the recent war, our secondary industries experienced much, the same conditions as they experienced, in World War I. Many new. industries were. established and the developmental process is still going on. Hundreds of thousands more men have gone into secondary industries. However, whilst we have opened up some new markets. for our exports, our secondary industries again find, themselves mainly dependent upon. the small domestic market provided by a population of 7,000,000. A-venues for exports were opened up particularly in countries to the north of Australia, but those markets have been substantially curtailed, if not completely lost, as the result of Communist activities, of which this Government seems to have no idea. I believe that some of those avenues have been closed to us for ever. Therefore, in the main, our secondary industries are again limited to the domestic market. At present, high prices are being realized for wool, wheat and other products: Ordinary fine comeback wool is fetching £90 a bale, an unprecedented price; whilst wheat is fetching from 18s. to £1 a bushel. I doubt whether those products will again realize such high prices for many years. Our primary industries at present are able to bear the excess costs resulting from world conditions and that are involved in maintaining the existing measure of protection afforded to our secondary indusftj4js simply because overseas prices for primary products are so high. But what will happen when those prices fall? The price of wool is already on the decline. The United States of America has had' a record wheat crop, and several European countries, following a series: of severe droughts, anticipate fairly good harvests this season. Although .there is still a wide and unsatisfied demand for all sorts of foodstuffè, it can confidently be forecast that the price of wheat will fall considerably this year. Undoubtedly, that will vitally affect the basis of Australia's 'conomy, and, therefore, the Government must give serious consideration to that fact. Unfortunately, extraordinary ignorance exists among our metropolitan population of the real basis of our economy. Australia is still essentially a primary producing country; and if the source of our prosperity is suddenly affected by developments adverse to our primary industries, the whole façade of our secondary industries will topple over. We are now beginning to manufacture complete motor cars in this country. We are told that Australia has grown up industrially. The motor car manufacturing industry will provide employment for approximately 9,000 people. One can imagine what will happen to that industry should overseas prices for primary products suddenly fall. In that event, widespread unemployment would be inevitable, because I recollect that whereas prior to the depression up to 70,000 cars were being sold annually in Australia, that number decreased to only 4,000 annually during the depression. At present, we have flowing into the country thousands of migrants, and a great deal of capital which is coming here because of the fear of a socialized Britain. Industries are still, calling out for man-power, and new industries are being established throughout the Commonwealth. Yet the fact is that the only market that is available to our secondary industries is in the main the domestic market. That is the situation we must face. Indeed, it is recognized in a veiled sort of way in the budget which contains just a hint of a warning that everything is not just right in Australia. I believe that the Minister for Immigration (Mr. Calwell) will agree with me when I say that, if Australia is to avert a recession, we must increase our population. It is obvious that 7,000,000 people cannot provide an adequate market for the output which our secondary industries are striving to produce. We need to increase our population in order to enlarge the domestic market. I am always prepared to give rommendation where it is due, and, in passing, I acknowledge the impetus which the Minister is giving to immigration. I do not know whether he views the Australian economy as I do. However, he will admit that we need to increase our population not only to make this country more secure against possible aggression but also to strengthen our economy. Failure to increase our population will imperil not only our economy but also the whole system of social services which the Government is now attempting to establish. I believe that that system already shows signs of weakness. An increase of our population is the answer to all these problems. By that means we can continue to expand our secondary industries and maintain a reasonably high standard of living, particularly if people realize that if they want a bigger loaf, they must themselves provide it. Dealing with immigration on previous occasions I have emphasized the necessity to assimilate non-flritish migrants in our communities. That can best be done by maintaining an English language press solely and common schools where English is the main language. During the recent war, I asked the Minister for External Affairs (Dr. Evatt) how many newspapers were published in foreign languages in this country. I sought that information as the result of what I saw in the United States of .AAmmeerirciac a when I visited that country ten years ago. In America, large communities of foreigners, whose total numbers run into millions, have conipletely retained their nationality through the publication of newspapers in their own languages. I said to myself at thr time that I hoped I would never see such a state of affairs in Australia. However, the Minister for External Affairs did not reply to my question in the ordinary way. He gave me a confidential reply, and, for that reason, it was not published in Hansard as replies to questions asked upon notice usually are. .1 have not that reply with me at the moment. but I was astounded at the number of foreign language newspapers which I was informed were circulating in this country at that time. I have no objection to foreign nationals in this country receiving journals from the countries of their origin; but I emphasize that we must keep the press of this nation an English language press. That will not cause harm to anybody, but will be of the greatest benefit to the nation. 871 BV8 1 0 CALWELL, Arthur Mr Calwell — Supervising the printing of newspapers in foreign languages is not the responsibility of the Minister for Immigration. I authorize the issuing of permits, but I insist in every instance that 25 per cent. of the material shall be published in English, and that the leading article of each of those newspapers shall always be published in English. 871 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON That is a big step forward, but I should go farther. Let us also see that the children of foreign parents are brought into our schools. When I was in South Australia recently, I was informed, to my amazement, that in certain areas there are many persons, Australian-born of the fifth generation, who cannot speak one word of English. 871 KVT 0 0 THOMPSON, Albert Mr Thompson —There are very few such persons. 871 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON I was told that they are not so rare, though I do not say that there are thousands of them. We recognize that we must have more population if we are to maintain our ecoiiorny, but we should ensure that the new-corners and their children ate taught in our .chools, and learn the English language. 871 BV8 1 0 CALWELL, Arthur Mr Calwell — I agree that the children of foreign immigrants should be taught the English language, but it is the State education authorities which decide what languages shall be taught in State schools. 871 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON In a matter of this kind, the general policy should be directed by the Commonwealth. If necessary, the State authorities could be assisted by Commonwealth grants, but I do not think that will be needed. 871 BV8 1 0 CALWELL, Arthur Mr Calwell BUt if there are Aiistralian children of the fifth generation who cannot speak English, they are not immigrants, and I cannot do anything about them. 871 KIX LPA 0 0 HUTCHINSON , William Joseph Mr HUTCHINSON I mentioned the matter as an example of what has happened in the past, and which should not. he allowed to happen again. I wish to emphasize the importance of increasing our food production in proportion to the increase of population. Last year, I obtained from the Commonwealth Statistician certain figures relating to food production in Australia, because I wished to learn what were the possibilities of increasing production in order to meet the needs of a larger population, and also, if possible, to increase our exports. It is important that we should export more •food so as to help the people of Great Britain. The figures are rather alarming. For 1945-46, the production of meat in Australia was little more than enough to feed our present population, plus 1,000,000 adults. Many people have the idea that there is it tremendous surplus of primary products. that we could bring in millions of people and still have plenty of food for them. The sooner they get that out of their minds the better, because it is not true. If th population were increased by 1,000,000 adults the consequent diversion of whole milk from butter-making—and, thank. God, we are becoming a milk-drinking people—would seriously curtail the production of butter. It is true that 1945-46. the year for which the figures were taken out, followed one of the worst droughts in the history of Australia, but when making an investigation of this kind, it is not vise to base one's calculations on a year when production was at its highest. For the years after 1946-47: production was somewhat higher, but the position is still unsatisfactory. Even now, we are exporting only 25 per cent, of the meat we produce. In other words, we are consuming approximately 75 per cent, of it. Thus, if the population were to increase by 1,500,000 adults, we should consume practically all the food we produced and exports would diminish almost to vanishing point. We cannot view with equanimity the present situation in regard to butter production. it is necessary that we should increase exports if we are to make provision for the support of a larger population and, at the same time, establish credits overseas. Recently, I obtained some information from the High Commissioner for the United Kingdom about food imports into Great. Britain. before the war. I wished to learn how we could help Britain by supplying food which .that country is at present buying from dollar areas. I learned that, of Britain's total meat imports, only 8 per cent. came from Australia. Empire countries supplied Britain with 18,000,000 cwt. :of meat, as against 18,000,000 cwt. from foreign countries, mostly those in the dollar areas. Obviously, therefore, we imust greatly increase the production of meat if we are to supply Britain with the meat it is now buying from the United States of America and Argentina. The predominant concern of any Australian government must be to increase the production of food, and that will not be easy. We have no great mountain ranges and few great rivers. We have a large area of good soil, but it is not of much use without water. Let us by all means expand secondary industries and improve transport facilities, but our first concern should be to develop the agricultural resources of the country. That is essential so that we may feed our own population, help the people of Britain, and improve our economy. What is most needed in Australia today is a change of outlook on the part of the people. There is far too much cynicism, especially among young people. This may be in some measure due to the experience of two world wars in so short a time, but cynicism really indicates a lack of confidence and self-reliance. Such a lack is -manifest -in many quarters today. There is also the frustration that many young people feel when they try to establish themselves in life. This, in turn, comes back to the question of taxation of companies and persons. it is almost impossible to-day for young men to establish a business out of their savings. The truth is that the Treasurer does not leave them enough. The situation calls .for spiritual and -moral readjustment and a recasting of our way of thinking so as to ire-establish our con-£dence and self-reliance. 'Pressure should be maintained :on the Government t0 pursue .a policy that will pro'idc condifions which will provide goocl opportunities in life for coming generations. Of course, the policy of a socialist government may he .to :keep the people always subservient 'end to withhold from individuals opportunities to.-save sufficient to enable them to engage in enterprises of their own. Whether that be so or not, the fact i that disillusionment is prevalent throughout the community to-day, which explains the general lack -of pride in work and in institutions and the absence of a high moral code in public life. We must restore these things if Australia is to be worthy of its heritage. Anybody who has visited the United States, of America must have been impressed by the vigor and spirit of enterprise evident in that country. A similar spirit could well be infused into Australian life. I know that there are many extremes of good and bad in America, but there is power and energy in the American way of life. Even the trade unions. alt-hough.they demand high wages as Australian unionists do, encourage hard work. They know that only by means of increased production can high wages be maintained. This vigour is evident everywhere. Workers in now factories give the impression of straining at the leash. "Let's go" is the slogan throughout the United States of America, in factories, fields and shops. The motive may be desire for personal reward, but the resultant benefits spread throughout the nation. We must recreate the same psychology in Australia and destroy the dangerous idea that an honest day's toil should not be done. We 'must encourage pride in the excellence of fine work and, above all, we must learn to see ourselves in proper perspective. Our young country is capable of sustaining a population of 30,000,000 or 40,000,000 on the highest standard of living in the world. People want to come here from other countries .and, unless anothermorld war intervenes, they will come here. Vast opportunities fcr advancement await those with enterprise and self-reliance. We must teach the people that the development of our country offers great rewards to all who are prepared to express themselves in mental and physical activity. The sooner we adopt the American •slogan, "Let's go ", the better -will it -be for all Australians, whether -young or old. 872 11.44 KSD Wannon ALP 0 0 McLEOD, Donald Mr McLEOD I was astounded to hear the honorable -member for Deakin (Mr. Hutchinson) declare that the isiosing faith:in the youth-of Australia and in our working men. .In -one breath, honorable members opposite tell the workers that the Government is overtaxing them, and then, in the next breath, they complain to the Government that the workers will not work. That seems to be the main trend of their speeches in this chamber. They are hard pressed to find any legitimate grounds. for criticism of this budget, because it will give relief to those sections of the population most entitled to relief—in fact, to those persons who, according to the honorable member for Deakin, suffer from frustation. For the last three or four years members of the Opposition have pursued H. policy which. has caused a great deal of discontent in, the community. They have engaged in mischievous propaganda, lirough newspapers and other mediums of publication, in an effort to convince the people that they are over-taxed by the Government and are "only working for Ohifley ". Unfortunately some people have been gulled and led to believe that it is unprofitable for them to work overtime. Time after time I have heard members of the Opposition tell the workers that they have nothing to gain by working hard, and then those members turn, around and condemn the workers on account of reduced production. I have great faith in our working men, amongst whom. I include, not only labourers, but also those who work in offices, on farms and in industries. The achievements of Australian working men in the short history of this nation have been remarkable. A famous architect who recently arrived here from the United States of America has praised the great cities that we have built up with our population of only about 7,000,000. In particular, he has paid tribute to the men who planned the Sydney Harbour Bridge and the -Australian tradesmen who built it. In this Parliament the honorable member for Deakin insults Australian workers, but I notice that he lacks the courage to do so elsewhere. I wish that our working men could see him and some of his colleagues when they 'sleep in this chamber. I wonder what they would think? Perhaps television would be n good thing. The unsatisfactory level of production in Australia is the fault of the Opposition. It has brought about this state of affairs 'by means of unrelenting, mischievous and untrue propaganda, as I shall prove. For instance, it has completely misrepresented the Government's tax policy. A few examples will serve to support my argument. Consider the case of a single man who earned £371 in 1946441. For that year he paid £60 in income tax, leaving a net income, of £311. In the following year, if his earnings increased to £423, he was taxed £54, leaving, a net income of £369. The facts disprove the claims that such people have not-benefited from tax remissions. Consider also the case of a married man with, two children —an average family—earning a constant income of £400 a year. In 194445, he was 'taxed £46, leaving a. net income of £354.. That was his net income. In 1945-46, when taxes were still high, he paid £43, and had a net income of £357. In 1946-47 lie paid a tax of £33, and his net income was £367. In 1947-48, he paid tax of only £12, leaving him with a net income of £388. Therefore, he is better off by £34 per annum compared with 1944-45 and, under this budget, child endowment will be increased by 2s. Gd. to lOs. a week. So the working man will not be convinced when honorable members opposite tell him that he is worse off now than he was in the past. Members of the Opposition complain that high taxes do not provide workers with an incentive to increase production. Given the opportunity, honorable members opposite would again employ the incentives of hunger, and fear of unemployment, as they did during the economic depression of the early 1930's. Hunger and the fear of unemployment are sharp spurs to make workers increase their output. Those spurs were used, not only on workers in secondary industries, but also on primary producers. The harder the. man on the land worked, the more he produced, and the deeper he got into debt. Honorable members opposite favour that kind of economic condition. For instance, the Lyons Government. in its first year of office in 1932, remitted land tax to wealthy companies and landholders, but at the same time reduced the invalid and old-age pension below the level to which it had been reduced in accordance with the provisions of the Premiers plan and even took a mortgage on the homes of pensioners. If pensioners had children who were in a financial position to contribute to the support of their parents, they were compelled to do so. That was the method of finance which an anti-Labour government adopted less than twenty years ago. Complaints that the economic position of Australia is bad are not supported by the prosperous condition of many companies. The truth was told in the figures on the financial page of the Melbourne iferald last Tuesday. The profit of Sutex Limited was 15 per cent, this year, compared with 12 per cent. last year, and the increased profit of the flame Pipe Company (Australia) Limited was described as "spectacular ". A tyre company recorded a net profit of llj per cent. Yet we are told that companies are going bankrupt because they are overtaxed. Obviously, they are in a prosperous condition. Honorable members opposite emphasize that employees must have an incentive to increase production. They should study the kind of incentive that the flume Pipe Ooinpany (Australia) Limited has introduced. It has the right idea, and is sincerely desirous of stepping up production and efficiency. They do not believe that the best incentives are hunger and -fear of unemployment. According to the financial editor of the Melbourne Herald, the output per man-hour of the flume Pipe Company (Australia) Limited has risen by 25 per cent. compared with the pre-war level. Factory efficiency has improved, and business with the Far East has been revived. Profits have shown a "most spectacular leap ". After allowing for 'taxation, the profit soared to £229,629, equalling 14 per Cent, on shareholders' funds, compared with a net profit of £60,081 last year. The financial writer of the Melbourne Herald stated that features of the company are a profit-sharing scheme, and employee-management commit-tees in factories. Complaints that production is falling off, and that men will not work, are unjustified. Honorable members opposite prefer the conditions when men stand three deep at the factory gates waiting for employment. The so-called high level of taxation has not killed the flume Pipe Company (Australia) Limited, or any other companies which are mentioned from time to time on the financial page of the Melbourne Herald. 874 K2A 0 0 RANKIN, George Mr Rankin — Are the coal-miners giving maximum production? 874 KSD ALP 0 0 McLEOD, Donald Mr McLEOD If the honorable member for Bendigo (Mr. Rankin) were given the opportunity, he would march the coalminers to work at the point of a bayonet, and stand over them. He has broad acres but a narrow mind. He would force men to work, but that method would not increase production. Of course, Australian industries are dependent on coal. The honorable member for Bendigo has not the brains to think of 'better incentives than the bayonet or hunger to induce the coal-miners to increase their output. Ill-informed people, who condemn the coal-miners, usually do not know what coal-mining entails, the conditions under which the men work underground and the effect that employment in the industry has on their health. Would the honorable member deny to the sons of miners the right to leave the industry and. settle on the land so that, after a few years, they could sit back at ease as he and I do? We do not meet.any danger in our occupation, and we shall probably live to a ripe old age under healthy Conditions. If the honorable member and other people like him worked to improve the conditions of the miners, Australia would have adequate supplies of coal, because the miners would be contented, as the employees of the flume Pipe Company (Australia) Limited are contented. I propose to read some extracts from an article which was published in the supplement to the Argus on the 28th August last. The author is Mr. Rupert Charlett, who describes conditions in the coal mines of Holland. 'The article reads— The State has taken a hand not only in planning mines for safety, mechanizing then,. and providing better working conditions, but in ensuring that there is nothing comparable to the "black country" of the English coalfields. The planning extends even to miners' homes, which in most areas are a series of "garden villages ". That description could not be applied to any of the coal-fields in Australia. The article continues— State intervention in the Dutch coal industry—four of the twelve Dutch mines an,State-owned and produce 58 per cent. of all Holland's coal—dates from 1913. From' that time the Dutch Mining Council planned for long-range operations and for the training of specialists to operate its mechanized mines. Machines were introduced where possible not only to speed production, but to reduce exacting manual to in the confined spaces of the pits. And along with its mechanization plans the council introduced an intei'esting innovation—a school for miners ", which not only trains thein to handle the new machines but to become mine managers. It is not merely n technical school, for part of its time is given to general education courses. It has helped to make Dutch coal mines the safest in the world by ensuring that all workers are thoroughly trained in the operation of their machines, and are conversant with safety codes. By raising the men's general educational standards, it ha,s enabled them to have a more intelligent " say " in the mnanagenient of their own industry,, and in particular has given able men every opportunity to graduate to executive positions. And it has had this extra result: While the great al-mining countries have become desperately short of workers, because millers have refused to allow their Sons to go into the dirty, exacting and dangerous work of milling coal. the Dutch mines have plenty of "recruits "- mud from miners' families, too. Privately. wised mines soon adopted the State's innovations. Before youths are permitted to work in the pits they spend four hours it day on practical and theoretical training in a " model" mine, so that they can get the "feel " of pit work, and become accustomed to equipment, and the safety codes and signals. Eost boys do not work underground until they have attended the school for three years. They spend half of each school day in the Is model " niille and workshops, the other half if the day being devoted to general education. Nothing is overlooked in training tomorrow's miners. They even take a special course of gymnastics so that they will be agile in low and confined spaces. Before they H. rc allowed to work underground they must pass a strict medical test. They work under the care of "mine fathers" until they gain "pit sense ". Their first jobs are as wheelers ", but this is a misnomer, as all kips and pit ponies long ago gave way to conveyor belts, chutes and underground trains in Dutch mines. After two years the recruit may become an assistant hewer, and at 23 he bay enter for time examination of hewer. Once he passes this examination he may enrol for a four.yr course for mine manager. For Cite first two years he must study after work, but in the second two he works only half shifts, spending the remainder of the shifts at school. All this time he receives full wages. Dutch coal mines have the lowest accident rate in the world, due not only to intelligent planning of the mines themselves, and to the specialized training of the miners, but to the extra supervision—twelve inspectors for every 32,000 miners, compared to ten for every 80,000 men in British coal mines. In addition, flhifle managements retain five additional inspectors, appointed by the miners themselves. who are paid by the managements. They protect underground workers not only from accidents, but from the "dust " mnenace—the cause of dreaded coal uhine explosions and of silicosis. Despite the virtual non-existence of this disease, all underground workers are given an X-ray examination every three years. The "clean " record of Dutch mines applies to accidents as well as industrial disputes, as the following international figures indicate:— Only Poland (where coal seams are thickand accessible) exceeds time production a man of Dutch mines, despite the comparatively thin and undulating coal seams in Holland. Dutch authorities claim two reasons for their fine record: contented, well-trained workers, and clean, safe, mechanized mines. Australians, who lose niore than £10 million a year in industrial production because of coal shortages, may be heartened by the fact that one country has been able to demonstrate that coal can be produced without continual, ruinous, industrial strife. Some Australians may even see a similarity between the constitution of the Dutch Mining Council and the Australian Joint Coal Board, -and hope for similar success here. It would be much more helpful if honorable members opposite, instead of continually condemning the Australian miners, were to apply what little intelligence they have to urging that conditions in our mines should be raised to the same level as those in the Dutch mines. If they were, probably men and boys would be waiting to go into the mines of this country. The Labour party is endeavouring to bring that about, but honorable members opposite think longingly of the time when men were driven by hunger to accept any conditions that were offered to them. Those days, however, have passed, and the sooner it is realized by the Opposition the better it will be. The conditions which obtained then bred communism. In this debate, as in the debate on the Addressin-Reply, honorable members opposite have confined their remarks almost exclusively to the subject of communism. They have accused all members on this side of the chamber, and even the Prime Minister (Mr. Chifley), of being Communists. The Communist party, the Liberal party and the Australian Country party have much in common. Politically they are closely related to one another; each of them desires this Government to be defeated. Honorable members opposite have not the courage to say that they are opposed to social security and are not in favour of the imposition of a high rate of tax on the higher income group to finance it. They know that the only way in which they can hope to defeat this Government at the next general elections is to persuade the workers to vote for them, and therefore they cannot say that they do not believe in good conditions or social security. The Communist party realizes that the improvement of the conditions of the people which is being brought about by the .Labour party will kill communism in Australia. Communism gained its present hold upon other countries because of the shocking conditions which existed in them for generations. The Communist party and the Opposition parties have different reasons for desiring the defeat of this Government. The Communists would welcome the bad conditions which would soon be created if this Government were defeated at the next general elections and the Opposition parties formed the Government of Australia. Expenditure on social services would be curtailed and the standard of living of the people would be reduced. The Opposition has no prospect of success at the next elections if the campaign is fought on the Government's administrative record. The only way in which it could win would be by creating great industrial strife before then, and I have no hesitation in saying that if the Communist party required a few thousand pounds to create that strife, the money would readily be made available to it by the Opposition parties. If this Government were defeated, the Communists would be more pleased than the members of the Liberal party and the Australian Country 'party would be, because it would mean that the day of the Communists 'had nearly arrived. There would 'be a return to the old shocking conditions. The honorable member for Deakin said that there was a lack of in- .centive and that the young people were suffering from •a sense of frustration. What the honorable member probably has in mind is that 'workers' children now have an opportunity to go to 'the universities and that he does not want them to compete 'with his children. He wants to see 'you.ths begging for a job or for food, as they did in the depression years. Al that time the honorable member for Bendigo (Mr. Rankin) had plenty of cheap labour. Any amount of cheap labour was available in those days, but the country was dying. Honorable members opposite do not realize 'that if those conditions ever return, the Communists will step in. I warn the people that the defeat of this Government would be the greatest possible encouragement that the Communist party could be given. It was said that the Prime Minister does not believe in savings being accumulated by the people. The Statistician's figures show that in 1939-40 savings bank deposits totalled £244,000,000 and that the present total is £682,000,000. Do those figures show that the Prime Minister does not believe in savings? How many farmers have paid off their zuortgages? The Labour party believes in ownership. Honorable members opposite call us socialists, but what is wrong with socialism if it permits a man to pay off 'his mortgage? The Opposition wants the farmers again to be in the hands of the bankers. Private banks now charge 8 per cent. or 10 •per cent, interest on money advanced to farmers to purchase cars, but the .Commonwealth Bank charges only 4 per cent. That is socialism. The Opposition does not believe in it, nor do the bankers. The Labour party, by creating conditions whereby the people can accumulate savings, pay off their mortgages on their farms and own their own homes, is en: suring that the workers will not again be driven by hunger to accept whatever conditions 'may be offered. The standard of living of every section of the community has increased. That is true even of the business men, because 'output and profits have increased. What is 'wrong with that? As to 'taxation, in 1939 a married man with a wife and two children, ?earning £300 a year, paid £4 a year income tax in New South 'Wales, and £3 16s. a year in Vietosia.' 'He received no child endowment payments. Now he pays no tax. Business men returning to this country from overseas agree that Australia's concmiy to-day is sounder than that of my other nation; but the Labour Gornment looks ahead. It realized some time ago that if the economic stability .f this country was to be safeguarded, additional constitutional power for the Commonwealth Parliament was necessary. A referendum was held on the .continuance by the Commonwealth of the control of prices and rents. The referendum was defeated as the result of the propaganda poured out by the Opposition parties in this Parliament and their supporters; but they overstepped the mark on that occasion, and they may soon find that they have pulled Australia's economy down around their own heads. The proposal placed before the people was that the new powers should be conferred upon this Parliament, the elected representatives of the people— cot the legislative councils of the States which are controlled by the privileged few and elected on a franchise which gives a vote to only one person in every three. Typical of the members of these institutions iz, Sir Frank Clarke, a banker who is roneerned mainly with profit-making. Unfortunately, the people of this country were grossly misled by the propaganda of the Opposition partics, who claimed that price control could be administered adequately by the States. We told the people the truth. We had nothing to hide. We jiut to them the jmple question, "Do you want this proa contracting-out form, which has to be the Opposition parties was—" The State Government can and will protect you from prices or rent exploitation ". To the working man rents are fundamental. He must have shelter. immediately the vdferendum was defeated, Labour's opporteftts changed their time somewhat and began to warn the people against price rises. Now they argue that costs are increasing because the Commonwealth has ceased to pay subsidies. That is not correct. The Commonwealth is still .ubsidiing tea, butter and superphosphates because it has some control over those commodities; but it has no control over textiles and we emphasized that in our referendum campaign. Row can anybody' reasonably expect the Commonwealth to continue to pay subsidies on materials used in the manufacture of goods, the price of which is beyond its control? Would any honorable member opposite give me a blank cheque to use as I pleased? Of course he would not. and that is the crux of our argument on subsidies. In any event, the withdrawal of subsidies will make little difference to the prices of manufactured articles; but ipanufacturers are seeking increases of as much as 50 per cent. I doubt whether the withdrawal of the subsidy on wool will increase the cost of a suit of clotMs by Li, but I have no doubt that the price will be increased by £5 or £6. It is an " open go " for the profiteers. They can ask what they like. Can the States administer price controls adequately? I believe that they cannot with the small staffs that they employ. Business people will ask for their goods as much as they believe the people will be prepared to pay for them. The Opposition must take the blame for that state of affairs. Every member of the Opposition is guilty of misleading the people, and the people will not easily forgive or forret. The result of the prices referendum was a tragedy. With a continuance of Commonwealth control, once rises would have been infinitesimal, and subsidies would have been continued. Given the opportunity. a man will always exploit his fellows. That is human nature. Otherwise, there would not be any need for a police force. Unfortunately, we have not yet reached that ideal state of society. With goods in short supply, purchasers will be forced to pay whatever prices are asked for essential commodities. Rents will go up. That is how the workers will be exploited. The guilt lies entirely with the Opposition. The referendum issues were not political, but the Opposition parties made them so. They should have been frank in their statements to -the people. They thought that the - defeat of -the referendum would lower the prestige of the Labour party. .But we can always face the people, because we have told them the truth. In spite of all the propaganda of the Opposition parties and their unlimited funds, the truth will always prevail. This budget is one of the best brought down in this House since I have been a member of it. It gives relief from taxes to those who need it most, the family iueui. .1 agree with the remarks of the honorable member for Deakin on immigration, and I pay a tribute to the Minister for Immigration (Mr. Calwell) who has applied his dynamic personality to a most difficult task. He .has been able to get the ships. Honorable members opposite laughed when he said that he would bring 70,000 migrants to this country each year, but he is doing it. The migrants are of splendid types and will be a great asset to this country. The Minister is a reasonable man, and I know that he will give the fullest consideration to the suggestion that I am about to make. One of Australia's main primary products is wool, and there is wide scope for the expansion of the textile industry in this country. To that end, we should endeavour to bring here trained textile operatives from overseas. These people should he given priority. With the textile industry firmly established in this country, we could export manufactured articles instead of raw wool. In addition, the industry would give widespread employment and would thus expand the home market. 878 12.17 JLR Maranoa Country Party 0 0 ADERMANN, Charles Mr ADERMANN —I wish to make some. comments on certain statements that have been made by the honorable member for Wannon (Mr. M:cLeod). The honorable member endeavoured to associate the Communists with the Australian Country party. There is no such association; but I believe that there is a very close relationship between the Communists and the Australian Labour party. For their continned membership of this chamber, some members of the Labour party are dependent on the support of Communists. Although the number of Communists in the various electorates may not be great, their support of some candidates is sufficient to elect them. Honorable members opposite know that to be true. Many of them are in this chamber as the result of the preference votes of Communist electors. 878 KYC 1 0 POLLARD, Reginald Mr Pollard —The Opposition parties have all the criminal exporters haugiug on to them. 878 JLR 0 0 ADERMANN, Charles Mr ADERMANN The Minister talks of criminals; I remind him that the Labour Premier of Queensland has been negotiating with the Communists. He cannot refute the charge, which was confirmed by the statement of a Communist leader of the Waterside Workers Federation, who admitted that he wasprivileged to negotiate with the Prime Minister and that the Premier of Queensland had agreed to release those men and upset the law for which he himself was responsible. The Premier, likewise, did not bring a number of others to justice. That indicates that the Labour party is unable to state truthfully that it is free from any connexion with the Communists. A Labour government has given them preference even to the extent of breaking its own laws and allowing Communists to evade justice. I turn new to the subject of interest rates. The establishment of the Rural Credits Department of the Commonwealth Bank under the guidance of the right honorable member for Cowper (Sir Earle Page), when a member of a previous government, shows tue AILStralia. n Countryparty's atti tude towardinterest rates. As early as 1934 tliar department made interest rates as low a 34 per cent, to assist the primary producers. In .ruly, 1940, according to the Commonwealth Bank's own records the interest rate was further reduced to 3 per cent. No reduction has occurred since that date with the exception that .interest, in the case of a government guarantee, is 3 per cent., but the rate which the Commonwealth Bank charges is still the same as that which the Liberal government introduced. The budget stands condemned on the following grounds: It makes no effective contribution to the welfare of the ' people; the cost of living has been increased as a consequence of the Government's policy; the inflationary conditions have been aggravated by that policy; the increased benefits in social services provided in the budget, although warranted, will not he equivalent to the ever-rising costs of living; production in primary industry, as a basic factor in our economy, receives no assistance to obtain supplies of machinery or labour by the budget proposals; it is unstable, as its estimates are dependent upon the maintenance at their present levels of prices received for the export of commodities, particularly wheat and w01. I shall deal with those grounds in turn. The Treasurer estimated that tax reductions in this financial year would amount to £20,000,000, but at the same time he has withdrawn £26,000,000 which would have been distributed in subsidies on commodities. According to statement No. 2 in the budget, the actual revenue received in last year's taxation collections was £465,000,000. The estimated revenue for this year is £509,000,000, an increase of approximately £44,000,000. That shows that the people are being taxed more heavily. How effective the tax cuts are is also shown by the fact that after they came into operation the, average tax per head of the population will still be £21 16s. 4d., which is only 7d. less than the average during the previous year, and £1 5s. 4d. greater than the 1946-47 average. The average amount collected in income tax which stood at £18 9s. 4d. per head in 1946-47. will be £19 9s. 4d. on the latest estimate. In effect, over-all tax collections are to be increased. This ever-hungry Treasurer is determined to break his previous continuity of records in getting more and more money, year after year, from the people. Turning new to the cost of living, it is obvious that the withdrawal of subsidies on items affecting it must necessarily cause increases in prices. In reply to the honorable member for Wannon I say that that is not a direct result of the loss of the recent referendum or the return of price control powers to the States, but is due to the deliberate action of the Treasurer in withdrawing subsidies, increasing taxes, and passing on increased costs to the producers of this country. The Prime Minister (Mr. Chifley) has broken faith with the people. The honorable member stated that the Opposition had broken faith by making lying statements. I throw that assertion back in his teeth. Every honorable member on the Opposition side can at least claim to have as much respect for his character as the members of the government side have for theirs. Opposition members can stand up 'to the statements they made to the people during the referendum campaign, in which they pointed out the power which the Government had taken unto itself by the National Emergency Act, and which it could have retained until the end of the present year. The Government has thrown that act overboard because the people did not vote to suit it at the referendum. l:ncidentahlv. the Opposition, also gave the Government an assurance that if. would (:0-operate to secure a continuation of the povisioflf of the act until it was necessary to withdraw them. On the third point, 1. say that the budget, far from attacking inflation, is definitely having an inflationary effect, since every £1,000,000 which the Government collects in sales tax, income tax and customs duties means that another £1,000,000 is added to what the people must pay for commodities. The spiral then continues. The cost of living goes up, wages rise in consequence, and then the Treasurer collects more in taxes, which makes the cost of living go up, followed by a rise in wages, and so we go "round and round the mulberry bush ". As the Leader of the Australian Country party (Mr. Fadden) pointed out, every is. wage increase to the working man means another £1,000,000 to the Treasurer. He is continually taking more money from the people for the Government to spend. if the money were being expended wisely the people would not mind heavy 'taxation a much as they do now. On the subject of increased social benefits, I say that the cost of commodities to .the consumer is increasing far in excess of the 5s. increases which are made in pensions from time to time. Pensioners should be entitled to an increase of their pension at least equivalent to the increase in the cost .of living. Undoubtedly, the present increase of social service payments is more than warranted but the distribution of social service benets could be improved. The 'huge amount expended on the free medicine scheme shows how farcical is-the claim that such medicine is free. The taxpayer has to pay for every penny spent to give him "free " medicine, and he does not welcome having to pay for it in taxes. As to my fifth point, that primary industries receive no assistance from the Government's budget proposals to obtain supplies of machinery or labour, I say that the same conditions in regard to those supplies as operated in the past will continue to operate during this financial year. Primary producers will still be unable to obtain supplies of wire, galvanized iron or netting. They have been in that position ever since the war ended, but the budget will not help them, and they will remain in the same desperate plight. At present, except in isolated iustances, they are unable to obtain their requirements. Another, and even more important, factor in increasing production is an adequate supply of fuel oil. In demanding that more fuel oil be made available for primary pro- 4JUCCVS, I ignore the insinuation made by the Minister for Post-war Reconstruction (Mr. Dedman) in the course of the answer which he gave to a question yesterday to the effect that honorable members on this side of the House are only concerned to protect the interests of the oil companies. Neither I nor any other meniber of the Opposition is connected in any way with any oil company, but because of the harm done to primary producers by the Government's decision to reduce the supply of power fuel by another 20 per cent., we are vitally concerned with oil supplies. Primary producers depend very greatly upon supplies of fuel to operate their tractors, trucks and farm machinery, and it will he impossible for them to maintain the existing rate of production, apart altogether from increasing production, if the Government persists in reducing the present limited supplies by 20 per cent. Members of the Australian Country party are continually receiving telegrams from primary producers complaining that local oil distributors are unable to assist them to continue production by advancing fuel from their quotas for the following month because the distributors' quotas for the next period are already exhausted, and no further supplies can be issued by the oil ompanies' agents before the 1st October. The position of primary producers is desperate, yet the Minister has the audacity to assert that members of the Opposition, who have protested to the Government, are simply acting on behalf of the oil companies. It would have been more truthful of the. Minister to say that the political party to which he belongs is the one which is concerned with the interests of the oil companies, breweries and other monopolies because it is from those concerns that it receives funds for electioneering. Members of the Australian Country party are more concerned with maintaining the stability of our economy by obtaining for primary producers the materials which they require to continue producing essential commodities. I returned to Canberra. the day before the opening of the present session and immediately approached the Minister for Post-war Reconstruction and told him of the desperate position of primary producers due to the acute shortage of fuel oil. I explained to him that the present month of September is the ploughing season for certain crops, and that unless supplies of liquid fuel were forthcoming many farmers would be unable to sow crops. The Minister undertook to investigate the matter promptly, but instead of furnishing -a reply to me within a couple of days he waited for two weeks, and then informed me that his investigations had failed to disclose one instance of a primary producer having to curtail -his operations because of the scarcity of liquid fuel. Undoubtedly his purpose in delaying his reply was to allow the greater part of the mouth of September to pass, so that he would not have to make available supplies during that month. We are receiving complaints not only from the primary producers but also from the oil companies' agents and distributors, who are gravely concened at the plight of their customers, the primary producers. One of the major oil companies issued a circular to its distributors, a copy of which I saw. It was to the effect that the quota of power kerosene had been reduced by 20 per cent. Power kerosene is used almost exclusively for production purposes, and when one realizes the degree of dependence of farmers on power kerosene, supplies of which the Government has decided to reduce by 20 per cent., it is obvious that the Government's real purpose is not to increase, but to restrict. production. When .1 ih'tel'uiewed the Minister he asked me for the names of individual farmers who were adversely affected by the fuel situation, and undertook to ensure that supplies were made available to them. Although I furnished the names of several farmers the Minister did nothing to assist them. The only person in my electorate who received any assistance was an individual in the Cunnamulla district, and the Brisbane office of the Liquid Fuel Control Board came to his assistance only after I had mentioned details of the case in this chamber. The man concerned, who operates eight motor trucks in the Ounnamulla district, had his liquid fuel quota reduced to 1,000 gallons a month. Previously he used to submit details of the work on which he was engaged, and the Liquid Fuel Control Board would issue a special licence to enable him to obtain sufficient petrol to carry out his contracts. The man concerned was quite satisfied with that arrangement, but, following the Government's recent decision to curtail still further the supplies of liquid fuel, he was told by the Board that no further special licences would be issued to him. On investigating the matter, I discovered that three of his vehicles, which were used to carry mail and parcels for the Postal Department, were allowed altogether only 540 gallons of petrol a month, which meant that he had to operate his other five vehicles on 460 gallons a month. Those vehicles are used to cart wool, wheat, sheep and other primary produce which has to be hauled long distances in the Cunnamulla district. Any one who knows anything of farming realizes that one tractor alone would require 460 gallons a month. However, because I mentioned the case in this chamber, and not because of the undertaking given to me by the Minister, the truck-owner has now been permitted to make special application for the petrol which he needs to operate his services. When members of the present Government, do something wrong they do not like publicity to be given to their actions, and because of the fear that publicity might be given to the ease the Ministerrook action. 881 JYV 0 0 FULLER, Arthur Mr Fuller We do not have to go to such lengths to achieve things; at least I do not have to do so on behalf of persons in my electorate. 881 JLR 0 0 ADERMANN, Charles Mr ADERMANN The honorable member's interjection indicates clearly that preference is given to supporters of the Government in such matters, although the Government, which is elected democratically, is supposed to treat all sections of the community alike. If the Government wants primary producers to increase production, let it make available sufficient liquid fuel, without which it is impossible for farmers to increase production. The Government has restricted the supply of lighting kerosense to people in country districts who are completely dependent on kerosene for lighting. In many country areas electric power is not available, and since people cannot be expected to use candles, the only source of light available to them is kerosene. When they ask the Government to make available sufficient kerosene to enable then to enjoy one of the essential amenities of life, the present Government says, in effect, "No; you can sit in the dark. We are not concerned that you work much more than a 40. hour week, so long as you toil all day and produce sufficient food to feed the city-dwellers who will not work ". 881 JYV 0 0 FULLER, Arthur Mr Fuller Those tears will not save the honorable member at the next elections. 881 JLR 0 0 ADERMANN, Charles Mr ADERMANN I challenge any member or supporter of the Government to come to my electorate and debate these issues with me on the public platform. The loss of primary production because of the lack of farming machinery is considerable. Although farmers have been endeavouring for the last two years to persuade the Government to allow sufficient harvesters to be imported they are still as badly off as ever. In the Kingaroy district, in which I reside, large quantities of maize, peanuts and other foodstuffs which are vitally important to our economy at the present time. are grown. However, we have not been able to obtain a single planting machine in the last two years. A few machines designed to be drawn by tractors have been supplied, but we have been unable to obtain any horse-drawn machines because the Government is withholding import licences for all agricultural machinery. The firms which import agricultural machinery were informed by the Government two years ago that the importation of machinery was temporarily suspended, but the Government should have stated that so far as it was concerned the suspension would be permanent. I appeal to the Government to give further consideration to this matter. Tractors are still scarce. During the recent recess I addressed a letter to the Minister for Commerce and Agriculture (Mr. Pollard), pointing out the dire straits, to which farmers were reduced because of their inability to obtain this essential equipment. The Minister replied stating that approximately 11,000 wheeled tractors would be permitted entry into Australia during the next twelve months, and, in order that farmers may be aware of the circumstances, I arranged for his statement to be published in several country newspapers. Whilst these additional tractors will afford relief t0 farmers in closely settled agricultural areas who require wheeled tractors, they will not bring relief to wheat-growers, who need tractors of the caterpillar D-4 type. Apparently the latter are only imported from dollar countries. Tractors of the wheeled type are unsuitable for drawing the heavy implements used in wheat-growing areas. Apparently no relief is to be given to wheat-growers under the Government's restrictive import policy. A storekeeper at Dalby informed me that during the last twelve months he had 200 orders on his books, but that he saw no prospect of being able to get more than a few machines. I trust that the Government will review the import licensing system so that additional tractors of all types may be imported. The budget is unstable as realization of the estimated receipts depends upon the maintenance of the present high prices for export commodities, particularly wool and wheat on the overseas markets. Whilst we are fortunate that world prices for these commodities remain high, thus enabling us to maintain a reasonably stable economy, we must all regret that the hungry peoples of Europe have to pay such high prices for their essential foods. During the debate last night some reference was made to the Scully wheat plan. I do not propose to go into the merits or demerits of that plan now, other than to say that, but for the tragic restrictions imposed under it, many additional millions, of bushels of wheat would have been grown, to the benefit, not only of this country, but also of overseas people who were crying out for wheat. As the result of the restriction of the crops to 3,000 bushels production fell below the level of our own domestic requirements. 882 L0X 0 0 LEMMON, Nelson Mr Lemmon There was no limita tion to 3,000 bushels under the plan. 882 JLR 0 0 ADERMANN, Charles Mr ADERMANN The crops were restricted as the result of the limitation of the price of 4s. a bushel to the first 3,000 bushels. No wheat-grower could afford to grow wheat at 2s. 2d. a bushel as a first advance because that price was below the cost of production. The Minister for Works and Housing (Mr. Lemmon) may have been well satisfied with the plan because under it the growers in the State which he represents received 12s. an. acre a.e compensation for not growing wheat. No one could suggest that from any angle the Scully wheat plan henafited Australia. 882 KQB 0 0 SCULLY, William James Mr Scully - The wheat-growers' organization in Queensland supported the plan. 882 JLR 0 0 ADERMANN, Charles Mr ADERMANN i disagree with the honorable gentleman. 882 KQB 0 0 SCULLY, William James Mr Scully —Its support is on record.. 882 JLR 0 0 ADERMANN, Charles Mr ADERMANN Members of the Australian Wheat Board publicly expressed their opposition to the plan. As the result of the restrictions imposed by the plan Queensland's requirements of wheat had to be imported from the south at approximately 5s. 6d. a bushel. The instability of the budget is revealed by the admission of the Treasurer that it depends upon the maintenance of the existing high prices of our exportable products. A fall in those prices might have disastrous effects in this country. The much maligned producers, whom the Minister for Information (Mr. Caiwell) referred to recently as "hill billies ", constitute the backbone of the country upon whose efforts the economy of this country rests. Primary producers agree tha-t everything possible should be done to develop our export trade in secondary products; but at the same time they realize that without the primary industries this country would not be able to carry on. As it is the wish of honorable members that this sitting should terminate early, [shall reserve my further comments until rheEstiznates are being considered. Progress reported 883 Answers to questions 883 883 KNX LPA 0 0 HARRISON, Eric Mr HARRISON asked the Treasurer, upon notice- 1. What is the tot1 number of publications published by (a) the Department of Information, (5) the Department of Immigration, and (o) the Department of Post-war Reconstruction? 2. What are the titles of the individual publications in (a), (5) and (o), what is the number circulated in each instance, and what price, if any, is charged for each publication? 3. What is the total cost to the respective departments of these publications and what amount of newsprint and/or paper is used in their publication? 883 A48 ALP 1 0 CHIFLEY, Ben Mr CHIFLEY The information is being obtained and a reply will be furnished as early as possible.