1956-02-15 22 1 1 SENATE 5 0 COMMONWEALTH OF AUSTRALIA PARLIAMENTARY DEBATES. (HANSARD.) First Session of the Twenty-Second Parliament. (FIRST Period.) SENATE. The Twenty-first Parliament was by proclamation dissolved, as from the 4th November, 1955. The Twenty-second Parliament was convened for the despatch of business on the 15th February, 19.56, and the First Session commenced on that day. 1956-02-15 5 miscellaneous The Senate met at 10.30 a.m., pursuant to the proclamation of His Excellency the Governor-General. The Clerk read the proclamation. The Deputy appointed by His Excellency the Governor-General for the opening of the Parliament - the Honorable Sir Wilfred Kelsham Fullagar, K.B.E., a Justice of the High Court of Australiahaving been announced by the Usher of the Black Rod, entered the chamber and took hisseat on the dais. The Deputy,throughtheClerk. directed the Usher to desire the attendance of the members of the House of Representatives, who being in attendance. The DEPUTY said-- Members of the Senate and Members of the House of Representatives : His Excellency the Governor-General, not thinking fit to be present in person at this time, has been pleased to cause letters patent to issue under the Great Seal of the Commonwealth, constituting me his deputy to do in his name all that is necessary to 'be 'performed in declaring this Parliament open, as will more fully appear from the letters patent which will now be read. The letters patent naving been read by the Clerk, The DEPUTY said- Members of the Senate and Members of the House of Representatives : I have it in command from the Governor-General to let you know that as soon as members of the House of Representatives shall have been sworn, the causes of His Excellency calling this Parliament will he declared by him in personatthis place; and it beingnecessary that a Speaker of the House of Representativesshall be first chosen, you, members of the House of Representatives, will retire to the place where you are to sit,andthere proceed to thechoice of some proper person to be your Speaker : and thereafter you will present the person whom you shall so choose to His Excellency, at such time and place as he shall appoint. I will attend in the House of Representativesfor the purpose of administering the oath or affirmationof allegiance to honorable members of that House. The Deputy and members of the House of Representatives having retired, 6 miscellaneous New Senator, Senator N. E. BUTTFIELD, Sworn. 6 10000 0 0 PRESIDENT, The The PRESIDENT - I wish to inform the Senate that I have received, through His Excellency the Governor-General, from the Governor of South Australia, certificate of the choice, at the election held on the 10th December, 1955, of Nancy Eileen Buttfield to fill a casual vacancy existing in the representation of the State of South Australia. The certificate of election was then laid on the Table by the Clerk. Senator Buttfieldmade and subscribed the oath of allegiance. Sitting suspended from10.47 a.m. to 3 p.m. 6 miscellaneous 6 miscellaneous GOVERNOR-GENERAL entered the chamber, and, being seated, with the President on his right hand, commanded that a message be sent to the House of Representatives intimating that His Excellency desired the attendance of honorable members in the Senate chamber forthwith, who being come with their Speaker, HIS EXCELLENCY was pleased to deliver the following speech : - Members of the Senate and Members of the House of Representatives : You have been called together to deal with matters of national moment. The House of Representatives having been dissolved and a general election having occurred, the twenty-second Parliament is now duly constituted. The election has left my Government with a substantially larger majority in the House of Representatives but with a Senate in which the Government will by July not have a majority. This brings into sharp relief the very important constitutional problem of the relationship between the two Houses - the problem of producing a workable parliament. The present position is that any conflict between the two Houses can be resolved only by the slow, cumbrous and not very satisfactory procedure of a double dissolution such as occurred in 1951. My advisers believe that the relations between the two Houses should be reviewed. They are of opinion that a government requires a reasonable term of office and a reasonable period of stability in which it may give effect to its long-range plans for the nation. They will, therefore, propose the setting up of an all-party committee of both Houses to investigate the constitutional problems which may be referred to it. One of these problems is that of the Senate and its powers and the procedure to be followed in the event of a dispute between the two Houses. My advisers believe that such matters are not merely party matters; they can readily affect any party at any time in the future; they can be solved only by securing some agreement between the parties upon the proper course to be followed. They are of opinion that should agreement be reached by the suggested committee the electors may be more disposed to vote for any constitutional amendment which would" subsequently be submitted to the electors by referendum. In the session of Parliament which . 1 am now opening, there will be two important groups of matters which will call for consideration. The first embraces foreign policy and the related defence measures which can make that policy effective. - The second can be described broadly as the economic problem. It has particular relation to internal development; the increase of production; restraint upon the rising costs of production which threaten to impair our international trading position; the encouragement of our exports; the control of our imports; the restoration of a sound balance of trade; the preservation and building up of our internationalfinancial reserves; and the protection of our currency. My Government has constantly sought to make a contribution to international peace by the building up of friendship and mutual understanding with other nations. A further meeting of the Prime Ministers of the British Commonwealth will be held in London this year, beginning towards the end of June. These meetings of Prime Ministers are believed by my advisers to be of great value to all the member conntries of the Commonwealth. My Government is determined, as in the past, to adhere to the United Nations. Australia was recently elected to the Security Council. My Government has ta ken an active part in the formulation of such regional agreements as the Anzus Treaty and the South-East Asian Treaty, and was also the original promoter of what is now called the Colombo plan. By the establishment of overseas posts, particularly in Asian countries, it has sought and will continue to seek friendship, goodwill and understanding. It believes that, as a result of these various activities, Australia enjoys a real friendship with the countries of South-East Asia. There are threats in the world to the peace and freedom of the democracies. My Government believes that these threats come essentially from the Communist nations, whose modern history has shown them to be aggressive and willing to resort to both external pressure and internal subversion to achieve their ends. It would, in the opinion of my advisers, be folly to accept Communist protestations or gestures at their face value. Every offer must be considered on its merits and in the light of past experience. What has happened in the Middle European countries and subsequently in Korea and In do-China is not to be forgotten by us except at our peril. It is for these reasons that my advisers have co-operated with other free countries in treaty organizations, designed not only to increase our contacts with other free countries, but also to marshal our combined strength for resistance to any further Communist aggression. My Government believes that, for example, it is false to say that the presence of British Commonwealth forces in South-East Asian countries is a threat to self-government. Great Britain has a record of converting colonies into self-governing nations, unequalled in recorded history. The truth is that the things that are vital to the defence of Australia are equally vital to the defence of the free countries of South-East Asia. The concerting of military plans and provision in respect of any one of these countries is of moment to all the others. Australian troops are not in Malaya as trespassers or for some purpose hostile to the self-government of Malaya. On the contrary, the constitutional growth of the Malayan people can proceed upon democratic lines only so long as the Malayan people are the masters of their own destiny. They cannot be such masters if they are at any time subject to molestation from within or without. Like Australia and any other country whose defensive power is limited, they need friends, effective arrangements and joint action if they are to survive. The Australian soldier in Malaya is therefore engaged in a joint enterprise in which his Malayan opposite number is also engaged. They are both defending the freedom not only of their own countries but of others. They are each defending the principle and application of democratic self-government and of freedom from external fear. Our ties with the Asian members of the British Commonwealth, are particularly close. The influence and. importance of India-, Pakistan- and Ceylon in world affairs is- growing daily. We were particularly glad to welcome the admission of Ceylon to the United. Nations. Our relations with the new Governments of Malaya and -Singapore are developing satisfactorily. Tha second' meeting of the Seato Council! will take place in Karachi in March, of this year and. will be attended by the Minister for External Affairs: No external! policy will possess reality unless- it' is backed: by adequate defence provisions My advisers, are, therefore, resolutely pursuing' the improvement of the training and equipment of our armed services and of research into the. design and use of modern weapons. They are seeking to maintain, a balance between man-power and equipment, and between defence: preparations, and economic stability. They have, with the approval of Parliament and: in partnership, with the United Kingdom-, expended large sums on research, and development of guided weapons at .the. Weapons Research Establishments in South Australia. In addition, my Government, is co-operating with the Government of the United Kingdom in. the testing of nuclear weapons. They will,, consistently with- the- safety of. the civil population, continue to do so. The whole- of their defence policy has been constantly kept under review so that both in the: Navy, the Army and the Air Force-, the constitution of forces, their, training and their equipment will be related to the kind of war in which, they would have to engage should a- war come. Until the occurrence of the recent waterfront strike, the prospect of bringing our international payments into balance was materially improving. It is unfortunatelytrue that the strike has, by grievously reducing our export flow, dealt: a serious blow to- those prospects. Nevertheless^ my Government is determined to adopt measures- to . arrest, the decline in our international, reserves. That decline is not in itself the cause of our problems.; indeed, normally, a fall in our overseas balances would tend to have a counter inflationary effect at home. The truth is that the decline in our overseas balances is primarily the result of inflation at home. Private incomes and total purchasing power are at record level's. Our local production falls far short, of satisfying the demand's so established. There is, therefore, a call for imports and, in recent times-, at a level which we cannot as a nation pay for out of our current earnings. We have, therefore, been drawing upon our reserves. It needs no economist to toll us that such a process cannot go on for long. As an immediate measure my Government imposed further import restrictions. But such restrictions are not in. themselves a complete cure. Recently my Government re-organized its departmental structure to enable particular emphasis to be given to trade: Under the new Department of Trade-, both primary and' secondary industries are being- encouraged to increase- Australia's export earnings: The Trade Commissioner Service and associated publicity campaigns are being expanded. My advisers- are re-examining Australia's overseas trade agreements in the light of present-day requirements.. An export insurance scheme will be established to provide cover to exporters against certain risks of non-payment. Parliament will be invited to- pass- appropriate legislation early ins the session. Legislation will be introduced as soon as agreement has been reached- between all interested parties to give- effect to a stabilization' scheme for.- the dried.' vine-fruits industry: The Prime Minister recently made an appeal not only to the public generally but to representatives of many sections of industry for restraint in expenditure; a restraint which would do more to preserve the value of earnings, by counteracting inflation, than any other single factor. It is not yet clear how far these appeals have been successful. But my advisers want to make it clear that, limited as their powers may be, they will be prepared to use them to the full to counteract an inflation which threatens to inflict deep injury upon our true prosperity. They believe that, prosperous though Ave are, we cannot sensibly seek to satisfy all our demands at the one time. There must be some balance between demands and resources. In our present state, either our resources must be materially increased, and. that means a far more urgent understanding of the importance of increased production than is now visible, or the demands themselves must be reduced by appropriate fiscal and other measures. Government expenditure itself must be sedulously watched and, wherever possible, pruned. But there are limits to the extent to which public works programmes can he cut back, since those programmes, if properly chosen and planned, largely represent the foundation upon which expanding private enterprise builds. In the last three years, public works expenditure has not been a growing contributor to inflationary pressure since, in terms of money, it has remained approximately static, and has, therefore, in physical terms, been smaller. My Government has decided that it should regularly make available relevant statistical information on the state of the economy. The first publication of this Treasury Information Bulletin was issued recently. In addition a comprehensive statement on the condition of the economy will be presented to Parliament at an early date. There are three features of the industrial position in Australia which deserve mention. The first is that we have no unemployment except when some strike is on; on the contrary, we have, by and large, quite a substantial unsatisfied demand for labour. The second is that average weekly earnings are not only high, but rising. The industrial tribunals have granted a very substantial increase in all marginal rates of pay, while competition for labour has raised pay still further. The third is that, apart from the circumstances attending the waterside trouble, working days lost through industrial stoppages have been at a minimum. Each of these elements is intrinsically good. But there is another side of the picture. Though production is in many instances increasing, it is increasing too slowly to meet demand. This has inflationary consequences. Costs are rising; our competitive position in the world is being weakened. Security of employment should, if allied to a proper social consciousness, lead to more effective work and therefore to lower costs. An extensive programme of migration has undoubtedly added to the labour force available in Australia and will, in due time, make a strong contribution to the national security. But, in the meantime, the migration programme gives rise to substantial demands upon capital resources for industry, houses, schools, hospitals, transport and public services generally. Added to these elements there is the fact that .great confusion exists in the industrial field because of conflict between the Commonwealth Arbitration Court, the State industrial tribunals and, in some cases, direct industrial legislation by 'the State Parliaments. My advisers feel that the problems so presented possess both reality and urgency. They are giving careful study to the ways am i means of increasing production and lowering costs while, at the same time, producing both stability and justice in the industrial field. It would be a nal- iona! misfortune if our people looked at such problems merely from the point of view of immediate self-interest. My advisers will, at the earliest possible date, give some lead in these matters. It is not to be forgotten that the direct powers of the Commonwealth are both limited and sketchy. There is, therefore, great room for intelligent co-operation between Commonwealth and States, and between employers and employees. The Commonwealth and State Housing Agreement negotiated in 1945 expires within a. few months. My Government is pro rising a new housing agreement with the States to operate from 1st July, 19."J6. Negotiations have commenced with the States and on agreement the necessary legislation will be introduced into Parliament. An efficient, manufacturing industry requires amongst other things adequate supplies of steel, power and fuel. The problem of coal shortages has been solved; four great petroleum refineries have been completed in the past two years; steel production has nearly doubled in recent years and the industry envisages a very large programme of development. Yet Australian production falls far short of satisfying Australian demand. The entry into Australia of overseas manufacturing firms, which my Government welcomes, has contributed and will contribute to the development of our manufacturing industries. Electric generating capacity is increasing. During last year we saw the completion of the Guthega unit of the Snowy Mountains scheme. My Government will continue to press on with this major development. The Australian Aluminium Production Commission's works at Bell Bay have now been completed. Production is at the rate of 8,000 tons per annum and will increase as soon as possible to an output of 13,000 tons per annum. My Government is active in developing the peaceful uses of atomic energy both by fostering the search for and production of uranium oxide and by establishing research facilities in- Australia. My Government will maintain a substantial and balanced immigration programme during the coming year. My advisers report that, as a result of their policy in the Northern Territory and the Territory of Papua and New Guinea, private enterprise is demonstrating confidence and initiative and making a larger contribution to development and trade than in any previous period. My Government will continue its policy of investigation, development and provision of facilities to assist thi3 expansion and ensure that the indigenous people share in and benefit thereby. On 23rd November, 1955, the Cocos (Keeling) Islands came under the authority of the Commonwealth and are now administered as an Australian territory. My Government will continue to contribute to the programme of scientific research being conducted in the Antarctic in connexion with the International Geophysical Year. It will maintain the two existing research bases at Macquarie Island and Mawson, and w,ill establish a third base in the Vestfold Hills area of Princess Elizabeth Land. My Government also contributed to the British Commonwealth Trans-Antarctic Expedition. My Government will continue to follow its practical health policy. The research work on poliomyelitis, in which our scientists played a notable part, will shortly yield important practical results with the commencement of production of Salk vaccine at our Commonwealth Serum Laboratories. The social services structure will be kept under continuing review. My advisers report that the scheme of financial assistance to churches and charitable institutions for homes for the aged has proved most successful. A programme of research into the special problems of the elderly will be undertaken shortly by my Government. The public demand for postal and telecommunication services has reached new record levels. My Government's programme of works is designed as far as possible to overtake arrears and maintain post office services at a high level of efficiency. Consequent on the recommendations of the Royal Commission on Television, my Government has decided to proceed with the introduction of television into Australia and, as an initial step, to establish national stations in Sydney and in Melbourne and to authorize the setting up of two commercial stations in each of these cities. A bill to amend the Broadcasting and Television Acts to meet the requirements of television will be presented to Parliament in the near future. My Government will continue its programme of reviewing and bringing up to date the law of the Commonwealth relating to industrial property, bankruptcy, copyright and designs. In the earnest hope that Divine Providence may guide your deliberations and further the welfare of the people of the Commonwealth, I now leave you to the discharge of your high and important duties. HIS Excellency thegovernor- general and members of the House of Representatives having retired, The PRESIDENT (Senator the Hon. A. M. McMullin) took the chair, and read prayers. 11 bill Assent to the following bills reported : - Appropriation Bill 1955-56. Appropriation (Worksand Services) Bill 1955-56. Australian Capital Territory and Jervis Bay (Lands Acquisition) Bill 1955. Coal Industry Bill . 1055. Commonwealth Aid Roads Bill 1955. Conciliation and Arbitration Bill 1955. Customs Tariff Validation Bill 1955. Excise Tariff Validation Bill 1955. Income Tax and Social Services Contribution Assessment Bill 1955. Income Tax and Social Services Contribution Bill 1955. International Finance Corporation Bill 1955. Lands Acquisition Bill 1955. Loan (Canadian Dollars) Bill 1955. Loan (Consolidation and Investment Reserve) Bill 1955. Loan (Housing) Bill 1955. Loan (War Service Land Settlement) Bill 1955. Meat Export Control Bill 1955. National Health Bill 1955. Northern Territory (Administration) Bill 1955. Re-establishment and Employment Bill 1955. States Grants Bill 1955. States Grants (Mental Institutions) Bill 1955. States Grants (Special Financial Assistance) Bill 1955. Tobacco Charge Bill (No. 1) 1955. Tobacco Charge Bill (No. 2) 1955. Tobacco Charge Bill (No. 3) 1955. Tobacco Charges Assessment Bill 1955. Tobacco Industry Bill 1955. Tradesmen's Eights Regulation Bill 1955. Western Australia Grant (Water Supply) Bill 1955. War Pensions Appropriation Bill 1955. 11 miscellaneous 11 10000 0 0 PRESIDENT, The The PRESIDENT - I have to inform the Senate that I have received a copy of the Opening Speech delivered by His Excellency the Governor-General to both Houses of the Parliament this day. 11 That consideration of the speech he an order of the day for the next day of sitting. 11 miscellaneous Motion (bySenatorO'Sullivan) agreed to - That the Senate, at its rising, adjourn till to-morrow at 3 p.m. 12 adjournment ! Senator the Honorable A. M. McMullin. 12 JZI Queensland LP Minister for the Navy 1 0 O'SULLIVAN, Neil Senator O'SULLIVAN . - I move - That the Senate do now adjourn. I am sure I echo the sentiments of all honorable senators in extending to you, Mr. President, a very cordial welcome home from the important mission abroad which you have fulfilled on behalf of the Commonwealth Parliament. As honorable senators know, our President represented the Parliament of the Commonwealth of Australia at the seventh meeting of the 'General Council of the Commonwealth Parliamentary Association held at Kingston, Jamaica, last month. That conference was attended by representatives of all members of the British Commonwealth of Nations, and I am sure that you, Mr. President, conducted yourself and represented Australia not only with great distinction to yourself personally, but also in such a manner as to add considerably to the prestige of the Parliament of Australia. 12 KTN TASMANIA ALP Leader of the Opposition 0 0 MCKENNA, Nicholas Senator McKENNA . - On behalf of the Opposition I cordially endorse the remarks of Senator O'sullivan in relation to. yourself, Mr. President. I understand that in addition to attending- the meetings of the Commonwealth Parliamentary Association, you visited America twice- and also went- to the United Kingdom and the Continent. Members of the Opposition are certain that in whatever part of the world you were, Australia was well represented and that in all circumstances you upheld the highest traditions of your office and. of this chamber. On behalf of my colleagues of the Opposition I am delighted to welcome you back to Australia and to find that you are safe and sound after your very extensive travels. 1 take this opportunity also to assure you of the respect and regard in which you are held by all members- of the Opposition. The PRESIDENT (Senator the Hon. A. M. (McMullin) - I thank the Leader of the Government (Senator O'Sullivan) and the- Leader of the Opposition (Senator McKenna) for their- kind remarks. It is a signal honour- for any parliamentarian to be privileged to attend a meeting of the Council of the Commonwealth Parliamentary Association. It is an important association, and the work carried out at its last, meeting laid the foundation for a worth-while conference which, it is expected, will- be held in 1957 at New Delhi, India. It is hoped that before long the Commonwealth Parliamentary Association will have representatives of the parliaments of 100 free, self-governing countries, with members elected in the- same way as are members of Australian parliaments,, and all thinking along the same democratic lines and appreciating the privileges of the parliamentary system as we know it. Oh a later occasion, I intend to present to a branch meeting of the Commonwealth Parliamentary Association a full report of the work done at the meeting in Jamaica. I am most enthusiastic concerning the work, of the association, which can, if the organization is developed, make a tremendous contribution to the work of all democratic parliaments, and expand further the influence and ideals of the British Commonwealth. Question resolved in the affirmative. 12 15:47:00 Senate adjourned at 3.47 p.m