1930-03-12 12 1 2 SENATE 3 0 COMMONWEALTH OF AUSTRALIA. PARLIAMENTARY DEBATES. (Second Period.) The Senate on the 13th December, 1929, adjourned until a day and an hour to be fixed and to be notified by the President to each honorable Senator. Senate. 1930-03-12 The Senate met at 3. p.m. pursuant to the notification by the President.. The President (Senator the Hon. W. Kingsmill) took the chair and read prayers. 3 Questions 3 Special Grant for Unemployment Belief: 3 JZ6 SOUTH AUSTRALIA 0 0 O'HALLORAN, Michael Senator O'HALLORAN -In view of statements recently made that the States have not availed themselves to the fullest extent of the special grant of £1,000,000 made by the Commonwealth Government' to relieve unemployment, will the Honorary Minister inform the Senate whether the Government of South Australia has availed itself of the full amount placed at its disposal, and if it has not done this to what extent it has made use of the special grant? 3 K1L VICTORIA ALP Assistant Minister assisting the Minister for Works and Railways 1 0 BARNES, John Senator BARNES - As the honorable senator was good enough to inform me that he intended to ask this question, I have had prepared information as up to date as possible. Under the £1,000,000 special grant by the Commonwealth for unemployment relief South Australia was allotted £114,000. The date on which the programme was authorized was the 4th January, 1930, and' the advance asked for was £19,000. Application for this amount was made on the 21st January, 1930, and. the advance was made on the 28th January, 1930. The expenditure to the 28th February, 1930, was £17,000, and the number of men employed was 290. Senator Sir GEORGEPEARCE.In view of a statement by the Premier of New South Wales that certain figures given by him relating to the expenditure by the State of the portion of the special grant made available to New South Wales by the Commonwealth for unemployment relief had been challenged by the Prime Minister, who subsequently had to admit that he had been incorrectly informed, will the Honorary Minister have the figures he has just quoted referred to the Government of South Australia for examination similar to that which was made in regard to the figures relating to the expenditure in New South Wales? 3 K1L 0 0 BARNES, John Senator BARNES -I. shall be pleased to have the figures verified. 4 Questions 4 4 K09 TASMANIA 0 0 PAYNE, Herbert Senator PAYNE - I ask the Minister representing the Minister for Trade and Customs the following questions, without notice: - Was the tariff schedule tabled in the House of Representatives in November last prepared by the Minister or officers of his department or by any officers of the Public Service; if not, by whom was it prepared? Were the items contained in the schedule given detailed and full consideration by the Government or Minister before he took action to make the new duties operative? How many of the items contained in the new tariff schedule were referred to the Tariff Board for investigation and report thereon before the new duties were made operative? What were the items so referred? On what items in the new schedule were reports received by the Minister before the now duties operated? If the bulk of the items in the tariff schedule under notice were not referred to the Tariff Board and reports received thereon by the Minister before the new duties were made operative, has the Minister considered the legal position created by his action in making the new duties operative in contravention of the provisions of chaise 15 of the Tariff Board Act, which provides that the Minister shall refer to the Tariff Board for inquiry and report " the necessity for new, increased, or reduced duties," and that the Minister shall not take any action in respect of these matters until he has received the report of the board ? 4 JTL ALP 1 0 DALY, John Senator DALY - The honorable senator will receive all information relating to the tariff schedule when it is before the Senate. 4 K09 0 0 PAYNE, Herbert Senator PAYNE - I give notice that I shall ask the question again to-morrow. 4 Questions 4 4 JZD QUEENSLAND 0 0 FOLL, Hattil Senator FOLL - I ask the Leader of the Government in the Senate the following questions : - Has Mr. Parker Moloney, Minister for Markets and Transport, been in South Australia recently assisting in the State elections there on behalf of the State Labour party? Has he been drawing ministerial expenses during his electioneering tour? Does not the Prime Minister consider the position of Australia to bo sufficiently serious at the present time to keep his Ministers to their official duties rather than send them away on a State electioneering tour? Has part of Mr. Parker Moloney's propaganda been the advocating of a federal wheat pool to win votes for the State Labour party in South Australia? 4 10000 0 0 KINGSMILL, Walter The PRESIDENT (Senator the Hon W Kingsmill - The Minister need not answer the last question if he does not choose to do so. 4 JTL ALP 1 0 DALY, John Senator DALY - It is a fact that Mr. Parker Moloney, Minister for Markets and Transport, is in South Australia. He is engaged on ministerial work, but. is also assisting to bring about a change of government in that State. He is not drawing ministerial allowance during his tour. His visit to South Australia relates to a matter of vital importance to Australia, inasmuch as he is trying to break down the prejudice which exists in certain quarters in South Australia to a compulsory wheat pool, which every one admits would be of benefit to Australia. Does the honorable senator press the last part of his question ? 4 JZD 0 0 FOLL, Hattil Senator FOLL - No ; I withdraw that. 4 miscellaneous Statement by Acting Minister for Trade and Customs. 4 JZD 0 0 FOLL, Hattil Senator FOLL - In order that honorable senators may know where to send applicants for employment, will the Leader of the Government in the Senate obtain from the Acting Minister for Trade and Customs (Mr. Forde) a detailed statement of the 50,000 jobs which, according to him, have been made available as a result of the new tariff schedules. 4 JTL ALP 1 0 DALY, John Senator DALY - As the honorable senator should know, the ActingMinister for Trade and Customs (Mr. Forde) and all other Ministers are so busily engaged in endeavouring to open up new avenues of employment that they have not time at present to explore avenues in which employment is already available. 4 JZD 0 0 FOLL, Hattil Senator FOLL - I think the Minister must have misunderstood my question. A statement was made by the Acting: Minister for Trade and Customs to the effect that 50,000 new jobs had been made available- 4 10000 0 0 PRESIDENT, The The PRESIDENT (Senator the Hon W Kingsmill - Order! The honorable senator is not entitled to make a statement without first having obtained the leave of the Senate. 5 JZD 0 0 FOLL, Hattil Senator FOLL - Then I shall ask the Vice-President of the Executive Council whether he is aware that a statement was made recently by the Acting Minister for Trade and Customs that 50,000 new jobs had been made available as a result of the new tariff schedules. This statement appeared in the press, together with a photograph of the Minister. I did not ask whether avenues in which employment already existed were being explored; but where those 50,000 new positions were to be found, so that I and other honorable senators could inform persons applying for employment where they could get work. 5 JTL 0 0 DALY, John Senator DALY - The honorable senator is probably not aware that approximately 100,000 men in Australia are out of work, so that, if 50,000 jobs are made available, there will still be 50,000 men unemployed. 5 miscellaneous 5 Senator DOOLEYbrought up reports of the Parliamentary Standing Committee on Public Works, together with minutes of evidence, relating to the proposed establishment of automatic telephone exchanges at Brunswick (Victoria) and Hurstville (New South Wales). 5 Questions 5 Manufacture in Australia. 5 JZD 0 0 FOLL, Hattil Senator FOLL - I ask the Leader of the Government in the Senate (Senator Daly) if he has seen a statement issued by the Minister for Markets and Transport (Mr. Parker Moloney) to the effect that in Germany to-day there are over 400 factories producing power alcohol, principally from coal, and also from certain vegetable products, for use in internal combustion engines. I should also like to know if investigations have been conducted by representatives of the Government., during the recess, concerning the possibility of using our surplus coal and certain primary products for the purpose of manufacturing power alcohol in Australia as a substitute for petrol. 5 JTL ALP 1 0 DALY, John Senator DALY - I have not seen the statement to which the honorable senator referred in the first portion of his question. The manufacture of power alcohol has, however, received the serious consideration of the Government. Several conferences have been held with responsible authorities, and Dr. Rivett, of the Council for Scientific and Industrial Research, will, during his visit abroad, make the fullest inquiries in Germany concerning the manufacture of power alcohol, and report to the Government as to the possibility of its profitable manufacture in Australia. 5 papers The following papers were presented : - Tariff Board - Reports and Recommendations - Anti-corrosive and Anti-fouling Paints. Chamois Leather- Request for increased duty. Cornflour. Cotton-growing and Allied Industries - Request for assistance. Edible Oils - Request for increased duty. Electric Light Lamp Holders (excepting Miniature Lamp Holders and Screwed Socket Type) - Request for increased duty. End and Side Tipping Trucks. Concrete Trucks and Earth Scoops - Request for increased duty. Fertilizers. Flax and Linseed, Production of, in Australia. Ladies' Hand Bags, Ladies' Purses, and Ladies' Wallets, except of metal. Linseed Oil imported in packages containing less than 30 gallons. Medical and Surgical Instruments and Apparatus. Navigation Act - Inquiry into Coastal Clauses. Tyres for Motor Cycles. White Lead (dry or ground in oil) - Request for increased duty. Audit Act - Regulations amended - Statutory Rules 1929, No. 135. Transfers of amounts approved by the Governor-General in Council - Financial Year 1928-20- Dated 7th February, 1930. Bankruptcy Act - Rules amended - Statutory Rules 1929, Nos. 134, 140. Invalid and Old-age Pensions Act - Regulations amended - Statutory Rules 1930, Nos. 4, 11. Now Guinea Act - Ordinances of 1930 - No. 1 - Transfer of Land Control. No. 2 - Mining. No. 3 - Police Force. No. 4 - Appropriation 1929-1930. No. 5 - Coroners. No.6 - Native Labour. No. 7 - Police Offences. No.8 - Superannuation. No. 9 - Currency Coinage and Tokens. No. 10 - Mining (No. 2). Public Service Act - Appointments - Departments of - Health- G. H. Moore, C. H. Fitts, H. K. Lee, F. B. McCann. Home Affairs - A. W. Cornish,K. M. Ralston, A. G. Rose. Trade and Customs - K. M. Deans. Regulations amended - Statutory Rules 1930, No. 3. Railways Act - By-law No. 53. Wine Grapes Charges Act - Regulations - Statutory Rules . 1929, No. 139. Treaty of Peace (Germany) Act Regulations amended - Statutory Rules 1930, No. 19. Papua Act - Ordinances of 1929 - No. 8 - Mineral Oil and Coal. No. 9 - Mineral Oil and Coal (No. 2). Elections, 1929 - Statistical Returns in Relation to General Elections for the House of Representatives. Statistical Returns showing the Voting within each Subdivision in relation to the General Elections for the House of Representatives, viz.: - New South Wales. Queensland. South Australia. Tasmania. Victoria. Western Australia. Defence Act - Regulations amended - Statutory Rules 1929, No. 101 (in substitution for that tabled in the Senate on 21st November, 1929). Statutory Rules 1930, No. 14. Electoral Act - Regulations (Joint Electoral Rolls) - Statutory Rules 1930, No. 10, Lands Acquisition Act - Land Acquired at - Brooklyn Park, South Australia - For Postal purposes. Gosford, New South Wales - For Postal purposes. Harbord, New South Wales - For Postal purposes. Maylands, Western Australia - For Postal purposes. Peninsula, Perth, Western Australia - For Defence purposes. Port Augusta, South Australia -for Railway purposes. Nationality Act - Return showing the number of persons to whom Certificates of Naturalization were granted during the year 1929, and the countries whence the applicants came. Naval Defence Act- Regulations amended - Statutory Rules 1929, No. 136; 1930, Nos. 12, 13. Post and Telegraph Act - Regulations amended - Statutory Rules 1929, Nos. 132, 133; 1930, No's. 1, 2, 5, 0, 7, 8, 15. Quarantine Act - Regulations amended - Statutory Rules 1929, Nos. 131, 138. Seat of Government Acceptance Act and Seat of Government (Administration) Act - Ordinances of 1929 - No. 20 - Canberra University College. No. 21 - Marriage. No. 22 - Theatres and Public Halls. Northern Australia Act - Ordinances of 1930- Central Australia - No. 1 - Observance of Law. No. 2 - Motor Vehicles. North Australia - No. 1 - Observance of Law. No. 2 - Motor Vehicles. No. 3 - Darwin Town Council. Audit Act - Finance - Treasurer's Statement of Receipts and Expenditure for the year ended 30th June, . 1929, accompanied by the Report of the Auditor-General. Commonwealth Bank Act - Balance-sheets of the Commonwealth Bank of Australia and the Commonwealth Savings Bank as at 31st December, 1929, and Statement of the Liabilities and Assets of the Note Issue Department at 31st December, 1929; together with Auditor-General's Reports thereon. 6 bill Assent to the following bills of 1929 reported : - Wine Grapes Charges Bill (No. 2). Bankruptcy Bill. Seat of Government Administration Bill. Income Tax Bill. Commonwealth Bank Bill. Iron and Steel Products Bounty Bill. Loan Bill. Appropriation Bill 1929-30. Appropriation (Works and Buildings) Bill 1929-30. 6 ministerial statement 6 6 JTL South Australia ALP Vice-President of the Executive Council 1 0 DALY, John Senator DALY . - I lay on the table of the Senate a statement as to the policy of the Government and move - That the paper be printed. In placing before honorable senators an outline of the legislative programme which they will be asked to consider in the next few months, it is desirable to dwell for a moment on the difficult financial and economic position confronting the Commonwealth at the present time. Fundamentally, we are suffering from the effects of world-wide depression, accentuated by over-borrowing. Though the value and volume of our exports have declined, imports have continued to enter the Commonwealth on a large scale. As a consequence, the demands made by importers and others on London funds now exceed the supply, notwithstanding that £17,000,000 in gold has been shipped to London since July last. In addition to payment for imports, we have, of course, to meet a heavy annual interest bill on money borrowed abroad. For the six-years period ended 30th June, 1929. imports exceeded exports by £42,000,000. In the same period, we had to pay overseas, for interest and services, £193,000,000. Thus the net total of our oversea obligations was £235,000,000. In the same period, our oversea debt increased by £153,000,000. We also received, in London, during this six-years period, the sum of £9,000,000 in respect of Bawra dividends. This gives a total of £162,000,000 received in London towards meeting overseas payments. As the overseas payments for the six-years period amounted to £235,000,000, as already shown, there was an adverse balance in that period amounting to £73,000,000. Fortunately, at the beginning of the six-years period, Australia had a large accumulation of funds in London. There are, of course, certain invisible imports and exports the effect of which the Commonwealth Statistician is unable to calculate. The results quoted, however, illustrate the position as far as it is possible to do so. The position is somewhat worse if regard is paid to the trade figures for the six month's ended 31st December last. In that period there was an excess of imports over exports, including bullion and specie, of £16,000,000, and payments for interest and services overseas, amounted to about £17,000,000. Thus we required for that six-months period a net total of £33,000,000 to pay for excess imports, interest and services. Against that amount may be set the sum of £10,000,000 borrowed by means of Treasury bills in the oversea market. The position demands that we should . take the most stringent measures to rectify the trade balance. Thus, our immediate problem is to bring about a decrease of imports and an increase in the volume of exportable products, for which a demand exists. That is a task to which we must devote the most earnest attention. Development of primary industries for the production of exportable wealth and the extension of Australian manufacturing will help to balance our external trade and enable us to employ our people, and eventually to maintain a larger population. It would be a policy of despair to declare that costs of production and development are too high to permit of the expansion of our industries. Such a policy would imply that all development and expansion must cease. We must face the position frankly. Suggestions that wage reductions are essential to bring about increased production cannot be allowed to pass unchallenged. Employment is the barometer of prosperity, and production would be much increased if those who are now unemployed could be placed in useful work. The Government has devoted much attention to the necessity for stimulating the export of primary products. Important discussions have taken place with representatives of the wool industry, and we are watching with interest the policy now being put into effect, which, it is hoped, will stabilize prices. In the belief that wheat-growing, of all primary industries, is the one that will most readily respond to proposals for expansion, the Government last month invited Ministers of Agriculture of the various States, and representatives of the wheat-growing industry, to a conference at Canberra to discuss plans formulated by the Government for the establishment of a Commonwealth compulsory wheat pool. The principle of a compulsory pool was adopted by that conference. An Australian-wide wheat marketing scheme, controlled by a pool board in each State, elected by the wheat-growers, and by a Commonwealth pool board, on which each State board will be represented, is the essence of the proposals. A ballot of all wheat-growers is to be taken before 31st July next, to authorize the constitution of these boards. The Commonwealth Government has invited the State Governments to join with it in guaranteeing the growers, for the first year, 4s. per bushel, payable at country sidings, which would mean the equivalent of approximately 4s.8d. per bushel f.o.b. Honorable senators will be asked to consider the legislation that is necessary to give authority, so far as the Commonwealth Parliament is concerned, to these proposals. Encouragement will be given to the wine industry by increasing the export bounty from1s. to1s. 6d. a gallon. A bill to amend the Wine Bounty Act will be submitted. The Government has given the closest attention to the loan position in Australia. In December last, a loan of £10,000,000 was raised in Australia on behalf of the Commonwealth and the States. To this loan the public subscribed £7,790,000, the balance being taken up by the underwriting banks. Last month, a further loan was issued to provide for the conversion and redemption of £10,400,000 of Commonwealth securities maturing in Australia on the 15th March. At the same time, holders of Commonwealth securities maturing on the15th December next were given the right to convert into the new loan. The March conversion and redemption loan has been over-subscribed, and the excess will be used to meet portion of the loan maturing on 15th December. With regard to the December loan of £60,000,000, the conversion of £21,000,000 has already been arranged for and applications are still coming in satisfactorily. These results are gratifying and illustrate Australia's capacity to arrange her own conversion operations locally without recourse to the overseas markets. Four meetings of the Australian Loan Council have been held since the Government assumed office. At these meetings, the questions of loans to cover arrears of borrowing and present requirements, as well as questions relating to future borrowing, were discussed. The financial position made it necessary for the Loan Council to consider further reductions in loan expenditure during the present financial year, and to provide for substantial reductions in the programmes of borrowing for the Commonwealth and the States for the coming financial year. During the first six months of the financial year - that is, until 31st December last - customs revenue exceeded the estimate by £1,277,000, but for January, customs revenue was £398,000 below the estimate, and for February, £608,000 below the estimate. As tariff in creases and exchange difficulties must result in diminishing imports, there is every likelihood that customs revenue will continue to fall during the balance of the financial year. Expenditure in all departments has been carefully investigated, and reductions have been, and are being, secured by eliminating wasteful payments. The whole administration of the Department of Defence is now being reviewed with the object, of effecting economies consistent with efficiency. Proposals for the amalgamation of the Royal Naval College and the Royal Military College in a joint establishment at Jervis Bay are being inquired into. It is felt that a saving in the very high cost of training naval and military officers can be made. Maintenance of the Royal Naval College last year cost £64,750. As there were 52cadets at the college, the cost worked out at nearly £1,250 per head per annum. The staff employed for the maintenance of the college was 147, or nearly three persons for every cadet. Similarly, with regard to the Royal Military College, the maintenance cost was £52,750 for 74 cadets, or more than £700 per head per annum. A staff of 98 persons was employed for the 74 cadets. Further economies will be effected by the proposed re-organization of the work of the Development and Migration Commission. A bill to amend the Development and Migration Commission Act will be introduced. Developmental activities will be placed under the control of the Prime Minister's Department, and migration will be controlled by the Department of Markets and Transport. Co-ordination will be achieved between the work of the Council for Scientific and Industrial Research and of the development section by means of a consultative committee. This committee will deal with all schemes under the £34,000,000 Agreement, and will advise the Minister before preliminary work is started. It will also deal with matters of development referred to it by the States. The Commonwealth has had to bear the heavy cost of a supervisory organization designed to deal with a substantial stream of assisted migrants. On that heavy overhead charge, and on the contributions of passage money to migrants, a considerable reduction has been made. As a direct result of the arrangements now operative, it is expected that a saving of £41,000 mil be effected during the current financial year, and that for the year 1930-31, there will be a direct saving to the people of £124,000. Uniformity of control will mean a saving, in the London organization alone, of about £19,000 per annum. By arrangement with the British Government, assisted migration will be confined for the present to boys and domestics, and to nominations involving the re-union of families. The whole position was discussed fully with the Premiers of the States at the conference at Canberra lust month when is was agreed that in future, all requisitions and nominations should be forwarded direct to the Commonwealth. Hitherto, the practice followed by the States has been lo forward nominations direct to Loudon. The Government considers that as it is called upon to bear a large proportion of the cost, by way of passage money, loans to migrants, and administrative expenses, it should exercise strict supervision and careful reconsideration nf nominations as well as requisitions. With regard to non-British migration, steps have been taken to limit newcomers of nationalities already subject to quota restrictions to numbers representing a reduction of approximately 50 per cent, for this year as compared with last year. The permission granted in these cases will be confined, with very few exceptions, to the closest ' relatives of persons already settled in Australia. The need for an amendment of the . Constitution designed to give greater legislative power to the Commonwealth Parliament has long been recognised. The dispute in the coalmining industry, and the recent decisions of the High Court, have emphasized the need. One of the earliest measures to be placed before honorable senators will provide for the holding of a referendum, at which proposals for the alteration of the Constitution, along the lines desired, will be submitted to the people, Industrial legislation has received the close attention of the Government. Under the enlarged constitutional powers to be sought, we intend to bring down, later in the life of the Parliament, a measure providing for the reconstruction of the laws affecting conciliation and arbitration, together with a comprehensive scheme of social insurance, including unemployment, covering Commonwealth, State, municipal and private employers end their employees. There will also be a complete reorganization of labour bureaux throughout Australia. In the meantime, bills will be introduced this session relating to the Commonwealth Conciliation and Arbitration Act, the Arbitration (Public Service) Act, the Transport Workers Act, and the Crimes Act. Among other matters 'to be submitted for approval will be measures relating to the Seat of Government, Com- ' monwealth Bank, Commonwealth Public Service, superannuation, Commonwealth employees' compensation, a cotton bounty, a shale oil bounty, the Federal Aid Roads Agreement and wireless telegraphy. There will also be bills amending the Navigation Act, the Copyright Act, the Patents Act, the Income Tax Bates and Assessment Acts, the Land Tax Assessment Act, find honorable senators will be asked to consider an amendment to the Industries Preservation Act to permit of contracts being entered into with regard to shipping freights. It will also be necessary to con- aider the tariff schedules, tabled towards the close of last year. There is no doubt that the action of the Government in tabling tariff schedules embracing more than 300 items arrested to 8 considerable degree the growth of unemployment. After the tariff was introduced, numerous notices of dismissal were withdrawn, and the increased protection provided has given substantial additional employment. Honorable members will be asked to agree to resolutions for the ratification of the declaration by the Commonwealth accepting 'the optional clauses of the statute of the Permanent Court of International Justice, and of the protocols recently adopted in connexion with the revision of the statute of the court and the accession of the United States of America thereto. There will also be opportunities for discussion of the report of the conference on the operation of dominion legislation and merchant shipping legislation, and of the report of the Australian delegation to the Tenth Assembly of the League of Nations. The difficulties confronting Australia are serious, and a proper realization of them should result in wholehearted co-operation of all sections in the working out of a satisfactory solution. Indeed, at the present juncture, the Parliament might fittingly become an economic conference of representatives of the people meeting to discuss the general position. Debate (on motion by Senator Sir George PEARCE) adjourned. 10 miscellaneous SELECT Committee, The order of the day for. the bringing up of the report having been read - Motion (by Senator R. D. ELLIOTT agreed to - That the time for bringing up the report from the select committee appointed to consider, report. and make recommendations upon the advisability, or otherwise, of establishing' standing committees of the Senate upon Statutory Rules and Ordinances, Internationa] Relations, Finance and Private Members' bills be extended to this day week. 10 miscellaneous 10 KOJ Tasmania 0 0 HAYS, Herbert Senator HERBERT HAYS . - I move - That the report from the select committee appointed to inquire into and report upon the desirability and commercial possibility of sending messages from Australia to England over the beam wireless et Id. a word, presented to the Senate on 1*th August, 1929, be adopted. I was not aware that I should be called upon, at such short notice to-day, to speak to the motion. I therefore ask leave to continue my remarks on the next day of sitting. Leave granted; debate adjourned. 10 15:45:00 Senate adjourned at 3.45 p.m.