1957-03-19 22 2 1 SENATE 5 0 COMMONWEALTH OF AUSTRALIA PARLIAMENTARY DEBATES. (HANSARD.) Second Session of the Twenty-Second Parliament. (First Period.) SENATE. The Senate and the House of Representatives, on 8th November, 1956, adjourned to a date and hour to be fixed by the President and Mr. Speaker, respectively. By proclamation, the Parliament was prorogued by His Excellency the Governor-General on 7th March, 1957', until 19th March, 1957. The Second Session commenced on that day. 1957-03-19 5 proclamations The SENATE met at 3 p.m., pursuant to the proclamation of His Excellency the Governor-General. The PRESIDENT (Senator the Hon. A. M. McMullin) took the chair. The ACTING CLERK read the proclamation. 5 miscellaneous 5 miscellaneous 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 he 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 first session of the Twenty-second Parliament having ended by prorogation, I am now opening the second session of that Parliament. The recent visit to Australia by His Royal Highness The Prince Philip, Duke of Edinburgh, gave great pleasure to all of us and was greatly enjoyed by him. While in Australia His Royal Highness opened the Olympic Games at Melbourne and took the opportunity to pay informal visits to the Territories and to our major developmental projects. More recently we have rejoiced in His Royal Highness' elevation to the rank of a Prince of the United Kingdom of Great Britain and Northern Ireland. When I last addressed you I referred to the important constitutional problem of the relationship between the two Houses, and to the intention of my advisers to set up a committee to examine this and other constitutional problems. That committee was set up and has made substantial progress in the work of reviewing the Constitution. Much still remains to be done. You will therefore be asked to reconstitute this committee immediately in order that its work may suffer as little interruption as possible. On the international plane, events are complicated and uneasy. In July, 1956, Egypt by her act of nationalization of the Suez Canal disturbed a pattern of guaranteed international interest which had existed since the Constantinople Convention of 1888. My Government, with other users of the canal, participated in a conference in London wherein the hope rested for a formula which would protect the interests of all parties and isolate the operation of the canal from the politics of any one country. The Parliament will recall that my Prime Minister was closely associated with those efforts to seek a peaceful solution. In October, 19S6, hostilities broke out between Egypt and Israel, and the United Kingdom and French Governments intervened. The subsequent history of events is well known. My Government will continue actively to pursue an overall settlement of the basic problems of the Middle East which have so often threatened the peace of the postwar world. It is essential that the questions between Israel and Egypt should be disposed of, and the future of the canal assured. We welcome the declaration by the President of the United States of America of his intention to exercise the influence of and discharge the responsibilities which his great country has recently accepted in the troubled affairs of the Middle East. Concurrently with the crisis in the Middle East, events in Eastern Europe have indicated the strains and stresses to which the satellite states are subject. The people of Australia - and indeed of the whole free world - were deeply shocked at the calculated and ruthless armed intervention by the Soviet Union to suppress the national aspirations of the Hungarian people in October-November, 1956. This intervention was a flagrant breach of the Peace Treaty of 1947 which had guaranteed democratic freedoms to the Hungarian people, and to which the Soviet Union was a signatory. The Australian people showed their practical sympathy by organizing on a large scale voluntary relief, whilst my Government made grants amounting to £130,000 and also immediate measures to arrange facilities for 10,000 refugees from Hungary to find permanent sanctuary in Australia. In its approach to international problems my Government has continued its policy of strengthening the Commonwealth relationship. In June-July, 1956, a meeting of Prime Ministers of the Commonwealth took place in London. As members of this Parliament know, the United Kingdom Prime Minister, Mr. Macmillan, has expressed the hope that following a conference between President Eisenhower and himself a further meeting of Commonwealth Prime Ministers will be convened to discuss matters of mutual interest. Meanwhile, Australia welcomes the emergence of the independent African State of Ghana as a full member of the Commonwealth and looks forward with warm fraternal interest to the impending achievement of independence, within the Commonwealth, by the Federation of Malaya. At the invitation of my Government the Seato Council of Foreign Ministers recently met in Canberra from 11th to 13th March, 1957. This high level meeting approved plans which will further strengthen the organization which provides a shield against aggression in an area of vital interest to Australia. Already the Seato Council has been able to record rapid progress by member nations in their common problems of defence and of economic and social development. That Council has noted incessant efforts by international communism to subvert the free institutions of the nations of the area. Special attention has, therefore, been given to the threat to the internal security of nations within the region. Australia also continues its undiminished support for the Colombo Plan and the Australian contribution will continue to emphasize technical and training assistance. My Government has directed special efforts towards the development of the most efficient defence system that our resources can sustain. Military appreciations have been prepared and studied. Plans have been worked out which put emphasis upon mobility, hitting power, and modern equipment. A full statement will be made to Parliament at an early date in the present session. Adequate facilities for debate will be provided. In the past year all armed services contributed components to serve in Malaya as part of the Commonwealth Strategic Reserve. In so doing, these units have played a useful part in reducing the incidence of communist terrorism, and in assisting to promote that stability which is so essential to the orderly development of the Federation of Malaya. In collaboration with the Government of the United Kingdom, considerable progress has been made in the fields of defence science. My advisers expect the notable work performed at Woomera and Maralinga to continue. When I last addressed the Parliament, the condition of the Australian economy was causing concern. There was internal inflation, and our balance of payments with other countries was unfavorable. Our overseas reserves had been falling rapidly. My Government took action to rectify these weaknesses. My advisers report that the economy is now in a more balanced state; our trade position has improved; and our overseas reserves are growing. A high rate of productive activity has ben maintained. Many important projects which should bring even greater prosperity are being undertaken. To keep the economy on a stable and progressive course requires constant watch and appropriate* action. My Government accordingly has the facts of the situation and its economic policies under close and continuous review. It has recently had assistance in this vital task from the Economic Advisory Committee, the members of which included representatives of private industry and commerce. A comprehensive economic statement will soon be laid before Parliament. The improvement in the balance of payments, while it brings satisfaction, does not admit complacency. Although my Government has recently been . able to ease the severity of controls on imports, much ground has yet to be won in expanding export production, in securing export markets, in improving the efficiency and competitive strength of our industries and in developing our latent resources before controls on imports can be entirely removed. My Government is working towards that goal. Its attainment will depend largely upon our success in avoiding further inflation. Reference is made to inflation, because it cannot be said too frequently that' inflation is the enemy of progress and national development. A steady fall in the value of money increases costs of construction, causes expensive delays, and, by reducing the incentive to save, renders more and more difficult and burdensome the tasks of public finance. The drive for increased exports has been meeting with considerable success. In the manufacturing industries there is a new consciousness of the importance of and opportunities for export markets. Following the negotiation and. conclusion of the vastly significant Trade Agreement with the United Kingdom, a programme of trade negotiations with overseas countries is being undertaken in order to enlarge our export opportunities in the face of some overseas trends towards self-sufficiency. These negotiations will benefit wheat and other rural export industries. Increased funds have been made available for Australian trade publicity in the United Kingdom, New Zealand and other overseas markets. Publicity campaigns have been closely related to the availability of Australian goods, delivery schedules and. local conditions in particular markets. The Trade Commissioner service has been expanded and strengthened. During this session legislation will be introduced to give effect to certain reductions in tariffs made possible by the negotiation of the new trade agreement with the United Kingdom. The items affected will be mainly those covering goods which are not produced in Australia and the effective tariff protection afforded Australian industry will not be diminished by these reductions. The new agreement represents a major advance in two directions. Lower import duties on goods from foreign countries will provide a very important costsaving to Australian industry. Secondly, the constraints of the old agreement, so far as the scope for wider development of trading opportunities is concerned, have been broken and we now have room to move in our trade negotiations with other countries. Over the past year new trade and payments arrangements have been under discussion in Europe. The six countries of the European coal and steel community have carried forward their plans for the formation of a customs and economic union. The United Kingdom has entered upon negotiations for a free trade area which would bring her, and perhaps other countries of Europe, into association with the common market of the six. Such far-reaching changes could have important implications for the Australian economy and these developments are being kept under close review. My Government will continue to assist primary producers to increase output and improve efficiency. It has offered to increase its financial contribution towards wool research and is negotiating for a matching contribution from the industry. To assist the export of semi-processed wools, my Government has agreed to co-operate in the establishment of wool testing houses in Australia. The question of wheat quality is receiving increased attention and the Government has agreed with the wheat-growers on a plan for increased research activity. The necessary legislation will be introduced during the session. The current Commonwealth five-year plan for the stabilization of the dairying industry will terminate on the 30th June next. My Government is negotiating with the dairy industry for a new five-year plan and if these negotiations are concluded in time, legislation will be introduced during the session. The recent discovery of large quantities of bauxite in Cape York Peninsula and new developments in existing metal mines have added very significantly to Australia's known mineral resources. New large deposits of copper and additional reserves of lead and zinc at Mount Isa could add a new chapter to the development of Australia. They have led to the decision by Mount Isa Mines Limited to establish a large copper refinery at Townsville. A major undertaking associated with this development is the rehabilitation of the railway linking Mount Isa to the coast; this question is being examined jointly and urgently by my Government and the Queensland Government. It is my Government's intention to continue to push ahead with the Snowy Mountains scheme and so provide much-needed power for industry and water for irrigation. The civil application of atomic energy is now developing swiftly. Uranium production formed the initial stage of my Government's programme; it is now well established, and yielding useful exports. To provide the necessary basis .of technical knowledge and advice for the application to civil purposes of nuclear energy in Australia a research organization has been created and facilities are being established at Lucas Heights near Sydney. Agreements for the exchange of information have been or are being worked out with the United Kingdom, the United States of America and Canada, and Australia has supported the setting up of the International Atomic Energy Agency. My Government is conscious of the increasing importance of civil air transport to national development and international relations. Its intention is to strengthen Australia's air links with both the United Kingdom and the United States of America. To this end endeavours will be made to establish an Australian air service through the North American continent. My Government's intention to keep in line with current aviation developments is illustrated by the recent decision under which Qantas Empire Airways will purchase a fleet of modern international jet airliners. My Government continues to assist the development of an efficient coastal shipping service. The recently established Australian Coastal Shipping Commission is now functioning. My Government has recognized the need for further assistance to the important domestic shipbuilding industry by increasing the subsidy on ships built in Australia. It has taken special note of the importance of an adequate shipping service to Tasmania by placing an order for the construction in Australia of a special passenger vehicle ferry for the Bass Strait, service. My Government proposes during the session to introduce a bill providing for a general revision of the Navigation Act to bring it up to date. My Government will continue an active and balanced immigration programme appropriate to our capacity. Emphasis will be placed on an increase in the proportion of British migrants and proposals to widen opportunities for British settlers are being developed. Following the passage of a new Commonwealth Settlement Act by Her Majesty's United Kingdom Government, my Government will negotiate for a renewal of the United Kingdom Assisted Passage Agreement. In the field of industrial relations we continue to enjoy comparative industrial peace. Last year in manufacturing industries workers lost on the average only about one-seventh of a working day as a result of industrial disputes. A valuable contribution to an improved industrial atmosphere and to efforts directed towards greater productivity is being made by the Ministry of Labour Advisory Council. The council and its standing committee on productivity have succeeded in arousing a greater community consciousness of the vital importance of increased productivity in Australia. My Government has a lively sense of the needs of the social services, and particularly of the difficulties of pensioners of all types who have no other source of income. It will continue to review its legislation. Meanwhile it records its pleasure at the growing success of the aged persons homes scheme and the effectiveness of the Commonwealth Rehabilitation Service. A fruitful part of my Government's work is the development of the National Health Services, which have done so much to prevent disease and further the health of the people. My advisers report that more than 1,000,000 children have already been immunized against poliomyelitis with Salk vaccine, produced at our Commonwealth Serum Laboratories. Supplies of the vaccine will continue to be made available for this great campaign. The Government has just renewed with State governments the Hospitals Benefit Agreement which since 1952 has done a great deal to support hospitals in every State. The Commonwealth has now, pursuant to its announced policy, executed a new Housing Agreement with the six States. This will provide their Governments with loan money to continue building houses for rental and also for re-lending to societies which will help people to build their own homes. There has been a remarkable achievement in housing in recent years by public authorities and private citizens. My Government's policy has contributed notably to this achievement. There are nevertheless still some arrears in home building. The practical need for some resources to be diverted to public and commercial building has its inevitable effect on current programmes but my Government regards the problem of home building with sympathetic and active mind and as far as it is concerned will do what it can to ensure that the arrears are overtaken as rapidly as possible. The matter will be treated as of outstanding importance, proper attention being paid to material supplies, labour availability and costs of construction. The Government has recently made a further special distribution to ex-prisoners of war of the Japanese from moneys realized from the sale of Japanese assets and from reparations payments: appropriate legislation will be introduced. Parliament will be asked to give some increased financial support to universities over the next two years. In addition, recognizing that the universities are facing almost a new world in which decisions of critical importance concerning their organization, fields of teaching and finance will be required, the Government has appointed a most authoritative committee of inquiry to make recommendations for future university development. In the Antarctic we have a new permanent station at Davis and we are setting up another new station at Vestfold Hills, 400 miles east of our original base at Mawson. This year, which sees the beginning of the International Geophysical Year, we are increasing our Antarctic scientific and exploration activities, both on our own account and in collaboration with other nations. Research results of extreme importance to Australia are continuing to come forth from the Commonwealth Scientific and Industrial Research Organization. Of particular interest is the research affecting the water supply of this, the world's driest continent. Already primary producers are beginning to make wide use of the process developed in the Commonwealth Scientific and Industrial Research Organization for reducing evaporation from reservoirs and dams. The organization's wool textile research has also prospered, and recent research results on scouring and carbonizing wool will help wool to maintain its position as the leading textile fibre. 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 the Governor-General and members of the House of Representatives having retired, The PRESIDENT (Senator the Hon. A. M. McMuIIin) took the chair, and read prayers. 11 bill Assent to the following bills reported: - Stevedoring Industry Charge Bill 1956. Home Nursing Subsidy Bill 1956. Land Tax Abolition Bill 1956. Customs Tariff Bill (No. 4) 1956. Excise Tariff Bill (No. 3) 1956. Customs Tariff Validation Bill 1956. Cocos (Keeling) Islands Bill 1956. Tractor Bounty Bill (No. 2) 1956. Income Tax and Social Services Contribution Assessment Bill (No. 3) 1956. Income Tax and Social Services Contribution (Individuals) Bill 1956. Conciliation and Arbitration Bill (No. 2) 1956. Public Service Arbitration Bill (No. 2) 1956. Australian National Airlines Bill 1956. Aluminium Industry Bill 1956. States Grants Bill 1956. States Grants (Special Financial Assistance) Bill 1956. Sugar Agreement Bill 1956. Northern Territory (Administration) Bill (No. 2) 1956. Customs Tariff (Industries Preservation) Bill 1956. Superannuation Bill (No. 2) 1956. Australian Security Intelligence Organization Bill 1956. Repatriation (Far East Strategic Reserve) Bill 1956. Broadcasting and Television Bill (No. 3) 1956. Commonwealth Employees' Compensation Bill 1956. Estate Duty Assessment Bill 1956. National Health Bill (No. 2) 1956. Re-establishment and Employment Bill 1956. Repatriation Bill (No. 2) 1956. Social Services Bill (No. 2) 1956. Commonwealth Railways Bill 1956. War Service Homes Bill 1956. 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 Parliament this day. 11 Motion 11 KNU Victoria 0 0 HANNAN, George Senator HANNAN .- I move - That the following Address-in-Reply to the Speech of His Excellency the Governor-General be agreed to: - May it Please Your Excellency - We, the Senate of the Commonwealth of Australia in Parliament assembled, desire to express our loyalty to our Most Gracious Sovereign, and to thank Your Excellency for the Speech which you have been pleased to address to Parliament. I would like, sir, at the outset to thank our leader for the privilege of moving this motion. In these anxious days, when the peace and the security of the world are poised so perilously, I think it is good that we recognize that the office and person of our constitutional sovereign act as a most comforting and unifying factor in the British Commonwealth and, indeed, throughout the whole world. The office of the monarch amongst our people is great and ancient, but the experience of history and of our times has proved that its symbolism is far more than a romantic survival. It is the very core of the British Commonwealth's unity and a link between the past and the future. It is a bond which erases the differences of race and creed and colour of the nations which comprise it. The hereditary monarchy is, in fact, an essential, rational and irreplaceable cog in the association of our nations. It provides a natural sanction for lawful government which cannot be given by any ephemeral dictator or even, may I say with respect, by any elected president. In an era when most solemn institutions have been challenged and when the moral foundations of public order have been shaken all over the world, the Crown has preserved the British Commonwealth from the lusts and the hates of bloody revolution and from the futility of hide-bound reaction. When we say " Elizabeth the Second by the Grace of God ", we remind ourselves of the spiritual basis of her authority, which does not rest merely upon the whim of a temporary majority in both Houses. We are possessed in the Crown of an institution which has stood the test of time and of tempest. Whilst practically every other monarchy in the world has toppled during the last 40 years, the British monarchy is more firmly established in the hearts of its people than at any other time in its history. This is because it is a democratic institution, which has moved with the times and which lives with its people. In time of war, our well-beloved George the Sixth shared with the humblest Londoner the hazard of the blitz. He moved amongst the victims of the bombardment. He inspired them by his own personal courage and by the devotion with which he discharged his own public duties. He showed a self-sacrifice in the discharge of those duties which undoubtedly hastened his own death. In peace-time the King's tradition has now come down to us in a person of remarkable charm and grace, a person who exhibits all the moral strength of her father, and who has already pledged that her young life will be spent in devotion to. her people. Very humbly, we desire to reciprocate. We ask that His Excellency, who has done so much in his own person, in Burma and elsewhere, to protect this Commonwealth from aggression, will be pleased to convey to Her Majesty Queen Elizabeth the Second a message of our fealty and our devotion. In the Governor-General's Speech, pride of place has been given to foreign affairs and to defence. This is only natural, for to what purpose would we build up a prosperous and socially secure community if we were not able to protect it from external aggression? I regard it as a matter of national pride and satisfaction that the Prime Minister of Australia was chosen to lead negotiations on the Suez Canal, lt was indicative of the adult stature of Australia in the councils of the nations, and of our own Government's determination to solve all foreign and international problems by peaceful means. That these negotiations did not produce the desired result was not the fault of our Prime Minister. Just before this Parliament was prorogued, we were learning of the shocking massacre of the Hungarian people by the " dove-toting " soldiers of Soviet Russia. Our Government has given practical aid to these victims of red terror, and has given money to aid them in their sufferings. It has even arranged air transport for many to whom it has given refuge in Australia, and has taken all necessary steps to do what it could to compensate these people for the outrages they have suffered. Last week, the Council of Seato met in the National Capital of Australia for the first time. The general trend of the discussions, so far as we were able to learn from press reports, centred upon the dangers of Communist subversion and infiltration. I think that has a rather special warning for Australia, because utterances by the persons concerned show that we appear to possess in Australia the worst type of Communist " party liners ". At a time when the stomachs of many British Communist trade union leaders were turning at the brutality of the Soviet to the Hungarians, Communists in Australia, in their own scandal sheets, were rejoicing at the great victory that had been won over " the fascist reactionaries ". It was most reassuring to read the promise that was directed to Australia by the United States of America's Secretary of State, who said - You shall never stand alone in the Pacific. This, surely, is the reward given to a government which has shouldered its obligations on collective defence, has honoured its pledges in Korea and Malaya and has not shrunk from electorally unpopular action if the defence of Australia has demanded it. We already have close ties with the United States of America in the Anzus pact, and the Government's policy of earning the respect and support of the Americans is one for which the whole nation should be grateful. We have shown that we are prepared to help ourselves and, accordingly, we have won the help of these good friends and powerful allies. The Governor-General in his Speech stated that plans were being worked out to give our defence greater mobility, hitting power and modern equipment. His Excellency also referred to the great part played by science in defence work. This underlines almost automatically the necessity for expanding technical training and education in the community. I believe that, no matter how advanced scientific warfare becomes, we shall always require a band of trained and disciplined personnel to administer the armed services, whatever form they may take. If it is true that the supply of partly trained men, particularly in radio and electronics, is not sufficient for defence requirements, the nation will be handicapped and will be put to great expense and will encounter great technical difficulties in providing this training. That is why I repeat my previous request to the Government to give every possible aid to those people who are prepared to train themselves. I refer particularly to the radio amateurs, or ham fraternity, who in the last war comprised the early backbone of our defence forces in radio, radar and electronic warfare. The most obvious way to stimulate this is by taxation concessions, and I specifically mention sales tax concessions. The Government grants assistance to rifle clubs, and justly so, because of their defence value. How much more should it assist those engaged in electronics? Yesterday, several members of this Parliament, through the courtesy of the Minister for the Navy (Mr. Davidson) and the Department of the Navy, spent a day at sea in the aircraft carrier " Melbourne ", escorted by four modern fighting destroyers. We were all tremendously impressed by a grand display, but what was perhaps not so easily noted was that of approximately 2,000 officers and men engaged, nearly one quarter were operating, maintaining, or in some way directly affected by, electronic or radio equipment. I hope the Government, in its defence training, will examine the suggestion that I have made. Some discussion has recently taken place <on the military aircraft building programme in this country. No one can be certain, hut it appears as if the day of the piloted fighter aircraft may have ended. History "has shown that every offensive weapon has brought forth a counter. When the deadly magnetic mines were wreaking havoc, a de-gaussing cable rendered them innocuous. When the acoustic torpedo, guided by the noise of a ship's screw, was having success, the escort vessels simply trailed a cable of iron drums and hardware astern, which out-foxed the acoustic warhead. When raiding German aircraft flew along intersecting radio beams directed from Rotterdam and Le Havre, the defending British scientists simply bent the beams so that they would intersect in the wrong places. The counter to the guided rocket missile is not likely to be as simple. None can say what it will be, but it is unlikely to be fighter aircraft. It is good, therefore, to note that the impressive work on development and research at Woomera and Maralinga will continue. As His Excellency has pointed out, the Government is watching carefully the economic picture. The fundamental point of cleavage between the policies of the Government and the Australian Labour party lies in the latter's approach to the rights and distribution of private property. The Liberal party believes that there should be the widest possible diffusion of the ownership of private property, and also of the ownership of industry and the means of production, distribution and exchange. It believes in a race of little capitalists, a strong and sturdy middle-class - the Yeomen of England. Whenever there has been a middle-class and men have owned some property, they have been able to look upon it as the economic guarantee of their, liberty. Tyranny has. never been able to invade their lives. The Liberal Party is opposed to monopolies, whether they be private or State. On the other hand the Australian Labour party's sole objective, despite happenings at Brisbane, is the socialization of industry, production, distribution and exchange. When this is taken to its logical conclusion, it means the regimented horrors of the " centrally planned " economy, with the State rationing the raindrops of the economic weather. It means, also, that if the community will give up its right to think and act for itself, the socialist welfare state will think for it and act for it in the way that the state sees fit; .and if a recent Labour pamphlet means anything it means industrial conscription and capital levies. " Capital levies ", of course, is a euphemism for " confiscation ". According to press reports, some sections of the Labour party met in Brisbane last week - I am not certain what sections - and the main result seems to have been the confirmation -of the socialist objective. This time it was adorned with a fair amount of sugar-coating, and was put up for acceptance under the term " democratic socialism ". Different leaders gave their own differing interpretations of the meaning of " democratic socialism ", and it is now quite clear that the new slogan is going to mean just whatever any individual Labour man wishes it to mean. 'If we look at the etymological derivation of the words, we find that the phrase " democratic socialism " is a contradiction in terms. " Democratic ", in this context means a form of government acting through and by the will of the mass of the people. " Socialism " means, according to the Oxford Dictionary, " The principle thai freedom should be completely subordinated to the interests of the State, with any deductions that may be drawn from it". It is as logical to speak of " bright darkness " as to speak of " democratic socialism ". It is really remarkable that in 1957, when socialism,, with all that it implies, has been discredited and, rejected throughout the free world, the ^Labour . party .should raise this crusading -banner, in the hope of returning to the treasury bench. All, I hope. is that they- have not forgotten about it at the time the .next election comes around, and that it is writ large upon their electoral ^matter. Our community can draw the maximum benefit from a free economy, which we espouse, only when competition in trade, business and services is keen and active. This position is threatened by the existence and continued growth of great commercial monopolies. Labour's policy of replacing dwindling private competition by one big State monopoly is, of course, hopeless. There has been a concentration of economic, and productive power in the hands of fewer and fewer corporations, and the evil effects of great cartels are causing much concern to the Australian community. 14 K5X 0 0 SHEEHAN, James Senator Sheehan - What is the honorable senator's party going to do about it? 14 KNU 0 0 HANNAN, George Senator HANNAN - If the honorable" senator will allow me to speak a moment longer, I will tell him. 14 K0W 0 0 ASHLEY, William Senator Ashley - We will take the honorable senator's word for the rest of what he has to say. 14 KT8 0 0 MCCALLUM, John Senator McCallum - Who is making this speech? 14 KPK 0 0 KENNELLY, Patrick Senator Kennelly - I was intending to move that it be taken as read. 14 KNU 0 0 HANNAN, George Senator HANNAN - When honorable senators have finished, I will go on. I have mentioned this matter in the Senate before, but I urge the Government again to take such action as is constitutionally available to it to fight the growth of these pernicious forces. The effects of cartel action in forcing up the cost of living and in mulcting the consumer in many ways are, of course, obvious. We can think of soap, oil, breweries, shipping, electrical manufacturers, dental supplies and dozens of others. But there is one aspect of monopoly operation which is, perhaps, not quite as apparent. I ask for leave to continue my remarks at a later stage. Leave granted; debate adjourned. 14 Miscellaneous 14 10000 0 0 PRESIDENT, The The PRESIDENT - I have to advise the Senate that His Excellency Dr. H. von Brentano, the Foreign Minister of the Federal Republic of Germany, is in the precincts of the Senate. With the concurrence of honorable senators, I propose to invite His Excellency to take a seat on the floor of the Senate. Honorable Senators. - Hear, hear! His Excellency Dr. H. von Brentano thereupon entered the chamber, and was seated accordingly. 14 Miscellaneous Debate resumed. 14 KNU 0 0 HANNAN, George Senator HANNAN - At the present time, the vast bulk of imports into this country are carried by a shipping combine which has a virtual monopoly of this traffic. The Australian Industries Preservation Act, which was passed, I think, by that great Liberal, Alfred Deakin, in 1906, makes illegal every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce between the States and foreign countries. It was amended, however, to permit a commercial combine or cartel to operate in the case of shipping if the terms of the arrangement were approved by the Australian Overseas Transport Association, which was registered in 1929. In other words, a combine which is illegal in other industries is legal in shipping if it is approved by the body to which I have referred. That permission has been given in the case of the recent 14 per cent, increase in freights, and, as a result, the Australian nation is paying an additional 14 per cent., which represents £21,000,000 in overseas funds. So, under the aegis or shelter of an act of Parliament which was designed deliberately in 1906, and which has been amended on three or four occasions since, to prohibit that type of fixation, the people of Australia are being required to pay this extra £20,000,000. I wonder how many import quotas could have been either increased or filled in their entirety in cases of hardship if this additional £20,000,000 had not been filched from the nation by the shipping combine! Additional point is lent to this complaint by the publication last week of the balance sheet of one of the main companies of the combine. This report showed that the net profit, before the watering down of shares, was 48 per cent, on paid-up capital. I hope the Government will resurrect and put teeth into our own anti-monopoly legislation and that it will streamline and modernize its operation by the appointment of a federal trade commission along the same lines as that operating in the United States of America. Members of the Parliament are familiar with many cases of hardship which import licensing has caused, and about which the Government is unable to do anything because of its determination to maintain our currency and protect it from failure. These importers take a somewhat jaundiced view of life, and automatically blame the Government for their troubles. I say to these importers that if they must castigate somebody they should allocate their blame and their strictures where these are due. His Excellency has expressed the hope that Divine Providence may guide our deliberations and further the welfare of our people. The founding fathers of our Constitution inserted in the preamble to it a statement that the States, "humbly relying upon the blessing of Almighty God " were resolved to federate. In the spirit of these two acts of hope, may this Parliament go about its duties. 15 KAF Victoria 0 0 WADE, Harrie Senator WADE .- It is my privilege, Mr. President, to second the motion for the adoption of the Address-in-Reply to the Speech that was delivered by His Excellency the Governor-General this afternoon. I should like to congratulate Senator Hannan on the very able manner in which he addressed himself to the motion. Senator Hannan, quite rightly, laid great stress on our ties with the British Throne, ties which, while making no firm demand on us as a nation, bind us together in a common way of life as people who subscribe to a common set of ideals. Those ties also strengthen our determination to preserve world peace at all costs and, so far as lies in our power, to protect the smaller countries of the world from oppressor nations. The system of government in Australia is a British heritage. As we know, the government accepts responsibility for legislation which, after receiving the Royal Assent, becomes law. It is true that it is the duty of Her Majesty's Opposition to oppose. No one section of the community has a prerogative to declare that it has the sole right to express loyalty to the British Throne. Those members of this chamber who saw the opening ceremony of the Olympic Games in Melbourne towards the end of last year will recall that a huge concourse of people, numbering about 100,000 persons, waited in the sun for hours in order to see His Royal Highness the Duke of Edinburgh arrive in the arena. He was accorded a tumultuous ovation, for two reasons: first, because he is a great Englishman, and secondly, because, on that historic occasion, we greatly appreciated the presence of one so closely representative of the British Throne. Included in the vast crowd of spectators were exponents of every type of political philosophy, who had travelled to Melbourne from all parts of this great land. It made one proud to be British to hear them, as one man, express their loyalty to the Throne. One other factor on the opening day of the Olympic Games supports my contention that British people hate oppressors. Those at the games generously applauded all the competitors, but a tremendous ovation was given to the Hungarian team when it marched into the arena. I suggest that the Hungarian team was especially applauded, not because of the stature of its members, or their dress or deportment, but because the team represented people who were fighting to throw off the yoke of the wretched oppressor. In effect, the spectators rose as one man and said, "We grieve for your people. We are on your side ". That, too, made me feel particularly proud to be British. His Excellency stated that the Parliament had been called together to discuss matters of great national moment, and he then went on to say - When I last addressed you I referred to the important constitutional problem of the relationship between the. two Houses, and to the intention of my advisors to set up a committee to examine this and other constitutional problems. That committee was set up and has made substantial progress in the work of reviewing the constitution. Much still remains to be done. You will therefore be asked to reconstitute this committee immediately in order that its work may suffer as little interruption as possible. I believe that the future of this country depends to a very considerable degree on the relationships between the Commonwealth and the States. For so long as the only consideration of certain members of this chamber is the fact that they are Victorians, Queenslanders or Western Australians we shall get nowhere. 15 KNR 0 0 HANNAFORD, Douglas Senator Hannaford - What about the representatives of South Australia? 16 KAF 0 0 WADE, Harrie Senator WADE - They are entitled to a pat on the back. 16 KBU 0 0 WORDSWORTH, Robert Senator Wordsworth - And the representatives of Tasmania? 16 KAF 0 0 WADE, Harrie Senator WADE - I think that we had better not mention the Tasmanians at present. I heard only yesterday that the reason why cricket is not popular in Tasmania is that fielders could quite easily find themselves in the ocean. However, to return to a serious vein, I believe, and I say this to my friends from the various States, that we are only tinkering with the problem of national development. We must determine positive priorities for public works in order to make this country great. 16 K5X 0 0 SHEEHAN, James Senator Sheehan - We agree with that. 16 KAF 0 0 WADE, Harrie Senator WADE - For many years, honorable senators have directed attention to the state of the transport services. The break of gauge hamstrings our railway systems and necessitates the transhipment of goods. Any one visiting certain border towns can appreciate that many man-hours are lost in consequence. It is very pleasing to note that a committee headed by Mr. Wentworth is having another look at this matter. The poor condition of many of our roads is causing considerable concern. Many people in the various States - some responsible and some irresponsible - are screaming to high heaven that they cannot get sufficient money for roads and hospitals. But do they suggest that taxation should be increased? Of course, they do not! They merely ask the Commonwealth Government to provide additional money. As we know, any additional money has to be provided by the people. Until such time as we can get together and solve these problems, we cannot hope to do justice to this country. Recently, the Minister for Shipping and Transport (Senator Paltridge) conferred with the various transport authorities in relation to the situation that has arisen in which the interstate road hauliers are pounding the roads to pieces and snapping their fingers at the various governments. For how long can this state of affairs be permitted to continue? Again I say that a solution can be reached only by the closest possible liaison. 16 KOW 0 0 HENTY, Norman Senator Henty - What do you think of the formula? 16 KAF 0 0 WADE, Harrie Senator WADE - I have no comment to make about the formula at this stage. I wish now to refer to the position of hospitals. I do not want to be charged with being parochial, but I shall talk about Victoria because I know something about the situation in which it finds itself to-day. Do you know, Mr. President, that the deficit of the Victorian public hospitals at the end of this financial year is expected to exceed £3,500,000? The annual interest bill on that sum will be £350,000. That is a fairly substantial sum of money, which I suggest will not be gainfully employed. 16 K5K 0 0 SCOTT, Malcolm Senator Scott - Is the honorable senator allowing for a rate of 10 per cent.? 16 KAF 0 0 WADE, Harrie Senator WADE - I am allowing for 5 per cent. The immigration policy has, perhaps, aggravated the position in Victoria more than in any other State. Approximately 47 per cent, of the new settlers have settled in Victoria. That is a very good thing for Victoria, but it has brought added difficulties in its wake. Every third patient in the Royal Women's Hospital and every fourth patient in the Queen Victoria Hospital is a new Australian. I remind Senator Scott that I am talking about Victoria - a very progressive State. 16 K5K 0 0 SCOTT, Malcolm Senator Scott - The honorable senator is a bit backward in his arithmetic. 16 KAF 0 0 WADE, Harrie Senator WADE - If the Victorian hospital programme were to be brought abreast of the influx of new settlers, that State would need approximately 1,500 extra beds at a capital cost of £12,000,000. It is a very great and complex problem, and ] am afraid there is no easy solution of it. In season and out of season the Prime Minister (Mr: Menzies) has called for international conferences of members of the British Commonwealth of Nations to determine the future of those nations. That being so, why cannot we in Australia realize that nothing but good can come from the closest possible liaison and the putting of first things first? By doing that, we would make Australia great. It is pleasing to note, too, that the Government has again indicated that it will continue to foster the primary industries. This Government has always adopted a realistic approach to the problems of the primary producer, and on this occasion it has indicated that it is sponsoring a move for the part processing of wool. That will have not only a profound effect upon the wool industry, which is our most stable and most valuable industry, but also a most beneficial effect on the Australian worker. Why should we allow our wool, either processed or semi-processed, to be exported to other markets when we ourselves can provide a market? lt is splendid, therefore, to note that the Government is sponsoring this move. It is interesting to note, also, that it is sponsoring a fund to develop research into the wheat industry. The grower has offered to provide, as a nucleus, one farthing a bushel towards the establishment of this fund, which the Government has offered to subsidize. Let me say, however, that I think backdoor methods are being used by a small pressure group to deprive the grower of orderly marketing. That group is talking about progress and the segregation of wheat. That, in my understanding, means the grading of wheat. I put it to you, Sir, that the grading of wheat in this country is not practicable for two reasons. The first is that our wheat is of two qualities - one high quality, and the other not so high. High quality wheat represents a very small part of our crop. Of course, it is not difficult to sell it or to obtain a premium on it. That part is quite simple, but what are we to do with the balance? When we have only one grade, I do not see how we can grade it. It could only be dubbed as being of inferior quality. The second reason is that various States adopt different methods to handle their wheat. Victoria, Western Australia and New South Wales have bulkhandling equipment, while in Queensland and South Australia the wheat is bagged. 1 know it will be said that South Australia has one silo, and maybe it will have more soon but at present practically all South Australian wheat is bagged. 17 KMN 0 0 GRANT, Donald Senator Grant - The honorable senator is doing nothing but talk about Victoria all the time. 17 JQY 0 0 COURTICE, Benjamin Senator Courtice - Get off the parish pump. 17 KAF 0 0 WADE, Harrie Senator WADE - I shall mention Queensland, and New South Wales, too. I warn members of the industry to beware of being hoodwinked by references to progress. They will find themselves in difficulties if they countenance the grading of wheat. Let me refer now to the question of social services benefits. The Governor-General, in his Speech, referred to the fact that this Government was mindful of the needs of the people, and he indicated that perhaps certain sections of the pensioner fraternity were in need of greater assistance because they could not supplement their incomes, lt is a matter of great pleasure to all honorable senators that the Government has indicated that it will examine this problem. Reference was made also to the Aged Persons Homes Act. I believe that is one of the finest pieces of legislation that this country has ever seen. Quite recently, I had the honour to represent the Minister for Social Services (Mr. Roberton) at the handing over to an aged persons' home of a cheque paid under this legislation. In the home there were approximately 25 old ladies whose average age was 86 years. That little congregation included people from every walk of life - people who had been affluent and others who, shall I say, were " hard up " in their old age. They all met on common ground. Their beautiful little dormitories were kept spotlessly clean and their menu would have made the heart of any person glad. But, above all, they had the companionship and the interest of a group of people to cheer them and help them in their old age. So, Mr. President, I believe that the Governor-General's Speech has revealed that this Government has the interests of every section of the people at heart and that, if we as a people are determined and united, we can all play a worthwhile part in making this country great. Debate (on motion by Senator McKenna) adjourned. 17 Motion Motions (by Senator McKenna) - by leave - agreed to - That leave of absence for two months be given to Senator Devlin on account of ill health. That leave of absence for two months be given to Senator Fraser on account of ill health. That leave of absence for one month be given to Senator Tangney on account of ill health. 17 Motion Motion (by Senator O'sullivan) agreed to - That the Senate, at its rising, adjourn till to-morrow at 3 p.m. 18 adjournment 18 JZI Queensland LP General 1 0 O'SULLIVAN, Neil Senator O'SULLIVAN . - I move - That the Senate do now adjourn. Before you put the motion, sir, I crave the indulgence of yourself and the Senate to congratulate my two colleagues on the excellent speeches they made in addressing themselves to the motion for the adoption of the Address-in-Reply. Question resolved in the affirmative. Senate adjourned at 4.26 p.m.