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19591128_senate_23_s16.xml
1976 lines (1976 loc) · 162 KB
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19591128_senate_23_s16.xml
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<?xml version="1.0" encoding="utf-8"?>
<hansard xsi:noNamespaceSchemaLocation="../../hansard.xsd" version="2.1" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<session.header>
<date>1959-11-28</date>
<parliament.no>23</parliament.no>
<session.no>1</session.no>
<period.no>2</period.no>
<chamber>SENATE</chamber>
<page.no>2049</page.no>
<proof>0</proof>
</session.header>
<chamber.xscript>
<business.start>
<day.start>1959-11-28</day.start>
<para>The <inline font-weight="bold">PRESIDENT (Senator the Hon. Sir Alister McMullin)</inline> took the chair at 9.30 a.m., and read prayers. </para>
</business.start>
<debate>
<debateinfo>
<title>QUESTION</title>
<page.no>2049</page.no>
<type>Questions</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>PUBLIC SERVICE</title>
<page.no>2049</page.no>
</subdebateinfo>
<speech>
<talk.start>
<talker>
<page.no>2049</page.no>
<time.stamp />
<name.id>K1T</name.id>
<electorate>through Senator McKenna</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">BENN, Archibald</name>
<name role="display">Senator BENN</name>
</talker>
<para>asked the Minister representing the Prime Minister, upon notice - </para>
</talk.start>
<list type="decimal-dotted">
<item label="1.">
<para>How many officers of the Commonwealth Public Service, including those in the office of the High Commissioner, are employed in the United Kingdom? </para>
</item>
<item label="2.">
<para>In what departments are they employed? </para>
</item>
<item label="3.">
<para>Is there a representative of the Public Service Board in the United Kingdom? </para>
</item>
</list>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2049</page.no>
<time.stamp />
<name.id>K7A</name.id>
<electorate>NEW SOUTH WALES</electorate>
<party>LP</party>
<role>Minister for National Development</role>
<in.gov>1</in.gov>
<first.speech>0</first.speech>
<name role="metadata">SPOONER, William</name>
<name role="display">Senator SPOONER</name>
</talker>
<para>- I am supplied with the following answers: - </para>
</talk.start>
<list type="decimal-dotted">
<item label="1.">
<para>Eighty-four officers are employed in the United Kingdom, under the Public Service Act. The majority of them work at Australia House but a small number staff the provincial migration offices at Birmingham, Belfast and Edinburgh. </para>
</item>
</list>
<para>In addition, there are 31 officers in the United Kingdom on . training courses, post-graduate scholarships, and on exchange duty with the United Kingdom Civil Service. </para>
<list type="decimal-dotted">
<item label="2.">
<para>While in the United Kingdom the officers come under the control of the High Commissioner and are responsible to him. The departments represented are - </para>
</item>
</list>
<para>Department of the Army. </para>
<para>Attorney-General's Department. </para>
<para>Auditor-General's Office. </para>
<para>Department of Civil Aviation. </para>
<para>Department of Customs and Excise. </para>
<para>Department of Defence. </para>
<para>Department of External Affairs. </para>
<para>Department of Health. </para>
<para>Department of Immigration. </para>
<para>Department of the Interior. </para>
<para>National Library. </para>
<para>Postmaster-General's Department. </para>
<para>Public Service Board. </para>
<para>Department of Supply. </para>
<para>Taxation Branch. </para>
<para>Department of Trade. </para>
<para>Department of the Treasury. </para>
<list type="decimal-dotted">
<item label="3.">
<para>Yes. </para>
</item>
</list>
</speech>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>SEAT OF GOVERNMENT (ADMINISTRATION) BILL 1959</title>
<page.no>2049</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2049</page.no>
</subdebateinfo>
<para>Debate resumed from 20th November (vide page 1727), on motion by <inline font-weight="bold">Senator Sir Walter</inline> Cooper - </para>
<quote>
<para>That the bill be now read a second time. </para>
</quote>
<speech>
<talk.start>
<talker>
<page.no>2049</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - This bill deals with the procedure associated with variations of the master plan of Canberra. The Opposition has no objection to the second reading of the measure. I shall, however, at the committee stage, propose some amendments, the purpose of which will appear quite plainly in the amendments themselves. I reserve whatever comments I have regarding them until the committee stage. </para>
</talk.start>
<para>Question resolved in the affirmative. </para>
<para>Bill read a second time. </para>
<para>In committee: </para>
<para>The bill. </para>
<para>Clause 4. </para>
<para>Section twelve a of the Principal Act is amended - </para>
<list type="loweralpha">
<item label="(b)">
<para>by omitting from sub-section (1.) the word " thirty " and inserting in its stead the word " twelve "; </para>
</item>
<item label="(c)">
<para>by omitting sub-section (2.) and inserting in its stead the following sub-section: - "(2.) A copy of the instrument by which any modification or variation of the plan has been made, together with an explanatory statement by the Minister, shall be laid before each House of the Parliament within fifteen sitting days of that House after the making of the modification or variation."; and </para>
</item>
<item label="(d)">
<para>by omitting from sub-section (3.) the words " fifteen sitting days " and inserting in their stead the words " six sitting days of that House ". </para>
</item>
</list>
<para class="block">Section proposed to be amended - 12a. - (1.) The Minister may at any time, by writing under his hand, modify or vary the plan of lay-out of the city of Canberra and its environs, published in the Gazette of the nineteenth day of November, One thousand nine hundred and twentyfive, as modified or varied prior to the date of the commencement of this section, but no such modification or variation shall be made until after the expiration of thirty days after notice of intention, published in the Gazette, so to modify or vary the plan has been given. (2.) A copy of the instrument by which any modification or variation of the plan has been made shall be laid before both Houses of the Parliament within fifteen days of the making thereof if the Parliament is then sitting, or, if not, then within fifteen days of the next meeting of the Parliament. (3.) If either House of the Parliament passes a resolution, of which notice has been given at any time within fifteen sitting days after the instrument has been laid before it, disallowing the modification or variation made by the instrument, the modification or variation shall cease to have effect. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2050</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - I move the following amendment to clause 4: - </para>
</talk.start>
<quote>
<para>After paragraph (b) insert the following paragraph: - " (ba) by adding after sub-section (1.) the following sub-section: - (U.) Before the instrument of variation is laid before each House of the Parliament, as required by the next succeeding sub-section, the Minister shall refer the proposal to the Joint Committee on the Australian Capital Territory which shall furnish a report to the Minister within seven sitting days.'; ". </para>
</quote>
<para>The purpose of the amendment is associated with the important matter of parliamentary control of statutory authorities. I expressed some thoughts to the Senate on this matter on an occasion during the course of the week. Accordingly, I do not devote any real time now to the principle involved. In the hurry of events in parliamentary life, the activities of bodies to which are committed important responsibilities tend to escape our notice as parliamentarians. Reports, which come through in great volume, from all sources, frequently reach us at times when we are pre-occupied with other matters. </para>
<para>The purpose of the amendment is to require the Joint Committee on the Australian Capital Territory to have a look at proposed variations of the plan. It is a plan that has been in existence for a long time. The proposed changes referred to are minor changes in the plan, and it is desired to expedite the processes for dealing with them. But, of course, power is taken to deal not only with minor changes, but with any change in the plan, under the procedure outlined in the bill. We of the Opposition feel that there is a responsibility upon the Parliament to obtain assurance that changes in a plan in which we all have a vital interest, as well as a great responsibility, should be brought to the notice of Parliament. This proposal will ensure that members of this Parliament will have to address themselves to these changes, and we shall have in the Parliament a body of members from another place,, and a number of senators, charged with the duty of keeping us informed regarding the consequences of proposed changes. This, of course, is a salutary proposition. I would hope that the amendment would commend itself to the committee. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2050</page.no>
<time.stamp />
<name.id>JQP</name.id>
<electorate>Queensland</electorate>
<party>CP</party>
<role>Minister for Repatriation</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">COOPER, Walter</name>
<name role="display">Senator Sir WALTER COOPER</name>
</talker>
<para>[9.37]. - This amendment was proposed in another place and was not accepted by the Government. I would point out that the Joint Committee on the Australian Capital Territory was formed only recently, and the Minister discussed this bill with the committee. The proposals put up by the committee were accepted by the Minister, with one exception. The exception was the proposal that seven days be allowed for the committee to make a report to the Minister. The bill originally provided a period of five days, the committee suggested seven, and the Minister compromised with six days. Six days cover two normal sitting weeks, while a period of seven days would run into three sitting weeks. The Minister is in consultation with the committee at all stages, and has given his assurance that while he is the Minister, or while this Government holds the Treasury bench, that consultation will be maintained with regard to all alterations on the plan. There will be better access to the Government's intentions with regard to variations of the plan than there was pre- viously, because in the past there has been no direct contact with the Minister before a bill was brought to the Parliament. I regret to say that the Government is not prepared to accept the amendment. </para>
</talk.start>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2050</page.no>
<time.stamp />
<name.id>JYA</name.id>
<electorate>Tasmania</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">O'BYRNE, Justin</name>
<name role="display">Senator O'BYRNE</name>
</talker>
<para>. - In the circumstances, I should like to explain the background of the amendment. It springs from an example of hasty, lastminute, rushed legislation. Some years ago a regulation was signed by the Minister and laid on the table of each House in the dying hours of a session. The regulation had, for its purpose, the alteration of the Canberra plan in order to turn the lakes scheme into what is known as the ribbon-of-water scheme. The matter was later referred to the Public Works Committee and our inquiry showed that the machinery was in motion to lease the racecourse, which would be submerged, for 25 years and that the fairways at the alternative site for the Canberra Golf Club at Westbourne Woods had been planted with trees. It was more or less a foregone conclusion that the ribbon-of-water scheme would be accepted. </para>
</talk.start>
<para>I remind the Senate that, because the Minister for the Interior of that day was overburdened with work, a regulation was tabled in the Parliament, was later gazetted and became operative. The amendment now before the Senate can only add to the safeguards that are so necessary to ensure that the Public Service machinery does not supersede parliamentary responsibility and authority. I therefore support the amendment wholeheartedly. </para>
<para>Amendment negatived. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2051</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - I proceed to the third amendment circulated in my name. The second amendment was consequential upon the carrying of the first amendment, which has just been discarded. I move - </para>
</talk.start>
<quote>
<para class="block">In paragraph (d), leave out " six ", insert " ten ". </para>
</quote>
<para class="block">The Minister adverted to this in the course of his commentary upon the earlier proposed amendment. The alteration would enable the Parliament to have ten sitting days within which to disallow any proposed variation of the plan. The Minister has had a compromise with the Joint Parliamentary Committee on the Australian Capital Territory. It is disposed to accept seven, but the Opposition feels that the period should be at least ten days. We all know how quickly events can move and how easily matters of this nature can escape our attention when we become preoccupied with matters of very great importance. I point out to the committee that the general proposal in relation to disallowance matters is contained in section 48 of the Acts Interpretation Act, and the period has been fixed at fifteen days. </para>
<para>We had an experience during the week of an attempt to disallow a regulation. The committee will recall that, in the rush of business, notice of the motion of disallowance was given on the last of the fifteen days. That was due to the heavy pressure of important legislation, but it illustrates how easily a change in the plan could escape our notice when we are preoccupied with other matters. As a further compromise to enable minor matters in the plan to be dealt with expeditiously, 1 suggest that we have ten days within which to disallow a variation instead of the six days proposed in the bill. </para>
<para>
<inline font-weight="bold">Senator Sir WALTER</inline>COOPER (Queensland - Minister for Repatriation) [9.44]. - The remarks I made on the earlier amendment apply also to this amendment. I again stress that, now that we have the Joint Parliamentary Committee on the Australian Capital Territory, the Parliament is far better informed in six days than it was previously in fifteen days. Some members of the Parliament know before anything is done just what will happen and just what variation is proposed. The Government considers that, in these circumstances, the period of the six days proposed in the bill gives the members of the Parliament far better knowledge of what is happening than they had previously and that these matters can be raised quickly by members of the Joint Parliamentary Committee. The Government is not prepared to accept the amendment. </para>
<para>Amendment negatived. </para>
<para>Bill agreed to. </para>
<para>Bill reported without amendment; report adopted. </para>
<para>Bill read a third time. </para>
</speech>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>AUSTRALIAN CAPITAL TERRITORY REPRESENTATION BILL (No.2) 1959</title>
<page.no>2051</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2051</page.no>
</subdebateinfo>
<para>Consideration resumed from 20th November (vide page 1727), on motion by <inline font-weight="bold">Senator Sir Walter</inline> Cooper - </para>
<quote>
<para>That the bill be now read a second time. </para>
</quote>
<para>Question resolved in the affirmative. </para>
<para>Bill read a second time, and passed through its remaining stages without amendment or debate. </para>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) BILL (No. 2) 1959</title>
<page.no>2051</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2051</page.no>
</subdebateinfo>
<para>Debate resumed from 25th November (vide page 1797), on motion by <inline font-weight="bold">Senator Paltridge</inline> - </para>
<quote>
<para class="block">That the bill be now read a second time. </para>
</quote>
<speech>
<talk.start>
<talker>
<page.no>2052</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - The bill now before us provides for a variation in the incidence of sales tax in relation to certain types of motor vehicles. Honorable senators will recall that in March, 1956, the Government, soon after an election, imposed increased taxes of various forms - the increases being estimated to yield £115,500,000 a yearunder a supplementary budget known as the little Budget. Amongst other things, the sales tax on motor vehicles used for private purposes was increased from 16$ per cent, to 30 per cent. That was a really extraordinary rise. The Government justified it upon the ground of the need to reduce the demand for the importation of petrol, having regard to the state of the economy. The Goverment left at the 16$ per cent, rate the sales tax imposed on vehicles of the type known as delivery vans. Station wagons came under the category of private vehicles, and attracted tax at the rate of 30 per cent. </para>
</talk.start>
<para>It appears that some firms have been manufacturing delivery vans, attracting sales tax of 161 per cent., and selling separately with them kit and equipment to enable them subsequently to be converted into station wagons. Although what has been done is strictly within the law, so far as the sales tax is concerned the Government claims that there is a gap, and it seeks to close that gap by making delivery vans of the type that are convertible, as I have described, subject to the full sales tax of 30 per cent. We oppose that. We oppose it for the same reason that we opposed the proposals in relation to sales tax in 1956. We felt that it was unfair to impose indirect taxes of this type to that extent. I have protested in this place in relation to the recent Budget against the heavier incidence of indirect taxes that has developed under the present Government. It means that more and more people are paying taxes at a completely flat rate and fewer according to their ability to pay on a graduated scale related to their incomes. We accordingly feel that just as we protested against the taxes then imposed, we must oppose this particular provision at the same time. </para>
<para>I point out that another objection made then was that the effect of those sales tax proposals in relation to motor vehicles was inflationary. It added to costs that went on into business, and ultimately it was reflected in the whole cost structure at an aggravated level, margins of profit being added to sales tax and adding to the extraordinary spiralling of costs that has continually gone on throughout the term of this Government. Again and again we have objected thai the Government has taken no positive steps to halt that spiral. I advert to the fact that the sales tax on motor vehicles was the beginning of the rise of substantial unemployment in Australia. In December, 1955, preceding the imposition of the little Budget there were only some 16,000 persons unemployed in Australia. From the moment this heavy sales tax on motor vehicles in particular was imposed the level rose within a few months to 30,000 odd - almost double. For a period of three years the level continued to rise until unemployment reached a total of some 80,000 odd. Very fortunately, the number is now on the way down - down in the 50,000's - but it is at a level now higher than it was in December, 1955. </para>
<para>We have been concerned about that, lt has been the subject of debate during the past three years. It was the disorganization of the motor manufacturing and distributing industry as a result of the imposition of this sales tax that began to empty employees out, particularly of the manufacturing industries and then of the distributing industries. That in turn had its effect on all the numerous ancillary industries relating to the motor industry. They are legion because many of the manufacturers of motor cars in Australia farm out the fabrication of many of the component parts of cars and any disturbance of that industry has enormous repercussions right through our industrial structure. </para>
<para>We oppose the measure for the reasons I have indicated. We think the imposition of this tax is unfair. We think it is inflationary, and we feel that at this time the Government should direct its mind to the question of altering the incidence of indirect taxes to restore the proportion in favour of direct taxes and to ease out the burden of these indirect taxes. <- </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2052</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate>Tasmania</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator WRIGHT</name>
</talker>
<para>.- I am not opposing the bill as such, but in view of the demonstration yesterday of the degree to which our arbitration machinery is taking its place in the escalation of the Commonwealth economy - not without just cause or excuse, to adopt the terms of the bill that has engaged our attention in the last few days - that machinery must be watched as a central factor in this continuing upsurge of costs. Taxation has been adopted as a measure to stem that upward tendency. I rise to express the hope that fiscal measures will not be resorted to as the appropriate means of deflating rising costs in the next six or twelve months. The most serious attention will have to be given to the problem. I am not convinced that the imposition of heavy taxes is other than inflationary. There are views to the effect that it is deflationary, but 1 am not convinced that it is. I plead that a course of this kind should not be adopted without the gravest consideration. </para>
</talk.start>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2053</page.no>
<time.stamp />
<name.id>KSL</name.id>
<electorate>Queensland</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MAHER, Edmund</name>
<name role="display">Senator MAHER</name>
</talker>
<para>.- I want to by-pass the terms of this bill because of the time factor and because honorable senators wish to bring the session to a close, but there is a subject which, while not exactly referred to in the bill, is particularly relevant to it. I wish to mention the matter briefly this morning while I have the ear of the Minister for Shipping and Transport <inline font-weight="bold">(Senator Paltridge).</inline> In Queensland, particularly in western and north-western areas, the owners of grazing properties frequently use four-wheeled vehicles of the Land-Rover type, in respect of which certain sales tax concessions are allowed. Such vehicles are particularly helpful in those areas in the wet season. In addition, they are useful for travelling over rough and rugged country. Under the existing law, the owners of stations are entitled to receive the regular sales tax concession when they buy such vehicles, but the managers of grazing properties have not the same facility. The manager of a property must be on the job for the greater part of his time. In the wet season, he has to leave his sedan car in the garage and resort to the use of a four-wheeled vehicle of the Land-Rover type, which is found to be essential in that country. The managers of station properties consider that they ought to be entitled to the same sales tax concession as are the owners of properties because managers are in fact doing work that many owners, who do- not have managers on their properties, do themselves. </para>
</talk.start>
<para>My remarks also apply to the men, with big droving plants, who bring thousands of cattle down from the back country to the markets of the south. In moving their droving equipment, they also require the type of vehicle that I have mentioned. The contractor-drover feels that he should have the same sales tax concession in respect of such vehicles as the graziers have. I have also had complaints from mining prospectors who find it necessary to go into rugged, mountainous country and to use this type of vehicle. They think that they, too, should be entitled to the sales tax concession that now applies in the case of owners of pastoral properties throughout Australia. I should like the Minister to keep this matter in mind. I know it cannot be dealt with under this bill, but it will come up for consideration later. I bring it to his notice to indicate the disparity that exists in the application of this sales tax concession. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2053</page.no>
<time.stamp />
<name.id>JZY</name.id>
<electorate>Western Australia</electorate>
<party>LP</party>
<role>Minister for Shipping and Transport and Minister for Civil Aviation</role>
<in.gov>1</in.gov>
<first.speech>0</first.speech>
<name role="metadata">PALTRIDGE, Shane</name>
<name role="display">Senator PALTRIDGE</name>
</talker>
<para>. - in reply - I point out to the Leader of the Opposition <inline font-weight="bold">(Senator McKenna)</inline> that this bill has a particular and specific relationship to a certain item - a motor vehicle - in relation to which the method of collecting and assessing sales tax has, in the past, created an anomaly. The extent of the anomaly is made quite clear in the second-reading speech, where reference is made to the fact that revenue has suffered to the order of £300,000 per annum and could, in certain circumstances, suffer to the extent of £3,000,000 per annum. </para>
</talk.start>
<para>The Leader of the Opposition has related this bill to general economic policy. At this stage, I do not propose to pursue that subject. The honorable senator referred to unemployment and inflation. The Government acknowledges that both of those factors have to be kept under continual review. I can only say to the Leader of the Opposition that that review will, as in the past, be a continuing one undertaken by the Government. We are aware of the twin dangers of unemployment and inflation. I merely say to the honorable senator that unemployment in Australia has never at any time reached a figure which, in the broad economic sense, has created a problem. He himself has acknowledged this morning the fact that the fortunately small percentage of unemployment that has existed is decreasing. Inflation, too, will be watched, and economic policy will be adjusted to meet the changing demands of the times. This bill, <inline font-weight="bold">Sir, as</inline> I have pointed out, has the particular and narrow purpose ©f correcting what is an obvious anomaly. </para>
<para>Question resolved in the affirmative. </para>
<para>Bill read a second time, and passed through its remaining stages without amendment or debate. </para>
</speech>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>LIFE INSURANCE BILL 1959</title>
<page.no>2054</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2054</page.no>
</subdebateinfo>
<para>Debate resumed from 25th November (vide page 1797), on motion by <inline font-weight="bold">Senator Paltridge</inline> - </para>
<quote>
<para>That the bill be now read a second time. </para>
</quote>
<speech>
<talk.start>
<talker>
<page.no>2054</page.no>
<time.stamp />
<name.id>JUM</name.id>
<electorate>Queensland</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">DITTMER, Felix</name>
<name role="display">Senator DITTMER</name>
</talker>
<para>. - <inline font-weight="bold">Mr. President,</inline> as a child, I was amazed at the way in which grotesque, unsually shaped pieces could be fitted together to make an attractive pattern. Since my entry into this Parliament, I have been intrigued by the fact that, when you take a collection of men with attractive and appealing personalities and bring them together to constitute a cabinet, they become implacable in their contempt for the will of the people and voracious in their appetite for power. We have seen a perfect illustration of the consequences of such a change in personality in the way in which innumerable bills have been submitted- to the Senate for consideration in so short a time. After all, I suppose that we may regard ourselves as the elected representatives of the people. </para>
</talk.start>
<para>The particular cabinet in office for the time being at Canberra, as representing the authority of the Commonwealth, is probably no different from other cabinets in this sense, but that does not justify the haste with which it requires the Senate to deal with various measures. Over the last two weeks, we have been required to deal with two particularly important bills, which I shall describe as the Cameron Pharmaceutical Burden Bill and the Barwick Divorce Facilitation Bill, and we are now asked to rush through, in a very short time at the end of this session, a large number of bills. Some one may say, "We could come back next week or the week after", but we, as the representatives of the people, have responsibilities to the people which we find it necessary to discharge outside the Parliament. I have on my desk a considerable number of invitations to visit towns in Queensland to which I propose to travel over the next couple of weeks. </para>
<para>The bill now before, us was received from the House of Representatives on Wednesday last, and, although we have sat on into the early hours of Thursday, Friday and Saturday mornings, we only now have an opportunity to discuss it. What appalls me is the fact that this is the only opportunity the Opposition will have to discuss the act which it is proposed to amend. That act, including the index, extends over 98 printed pages. It is divided into seven parts - the Government proposes to delete Part VI - and it contains 150 sections. The fact that we are given so little time to discuss such an important measure is a glaring example to the people of how contemptuous Cabinet can be of the rights of their democratically elected representatives. </para>
<para>This matter covers such important questions as the constitutional power vested in the Commonwealth Government in relation to insurance, deposits, statutory rights of the individual, actuarial investigations, reports to the Commonwealth, and so on. All these matters are vital to the people. </para>
<para>Further, it has to be remembered that there has been a change in approach to the investment of funds. Insurance companies derive their funds from the contributions made by their clients in the form of premiums paid upon policies taken out to cover probate, and policies maturing at specified ages or death or for the future security of children. At one time, the insurance companies invested all funds in excess of what was required to finance their own activities in what were looked upon as fixed securities - governmental and semi-governmental loans and bonds. Now, the insurance companies are turning from those fields of investment. They are turning now to real estate. The Mutual Life and Citizens Assurance Company Limited even went into the hire purchase business not so long ago. Because the bill is submitted at such a late stage in the sitting, we are not given full opportunity to discuss in proper detail the effect of the change in the avenues of investment of these enormous amounts of money. We are given no opportunity to stress the need for investment in the provision of worthwhile amenities and facilities calculated best to serve the interests of the nation and its people. It is nothing less than an absolute disgrace that we have so little time to discuss the measure. </para>
<para>Frankly, although the Opposition accepts the proposed amendments it must be admitted that they have been made necessary because of the need to make some attempt to stem the inflationary spiral that has been developing ever since this Government's predecessor took office in 1949. Before that government took office, it promised to restore the value of money - to put value back into the £1 - but when we realize the great decline that has taken place in the value of money since then, I do not think it can be claimed that this measure goes far enough by any means. The improvements proposed by this bill do not by any means cover the decline in the value of money. It is a step in the right direction, but not as much as the people are entitled to expect. The three amendments proposed are - </para>
<list type="loweralpha">
<item label="(a)">
<para>to allow life insurance companies to pay claims without production of probate or letters of administration where the amount insured does not exceed £1,000, instead of £500 as at present; </para>
</item>
<item label="(b)">
<para>to allow a special policy to be issued in place of one which has been lost, without the expense of advertising the loss where the sum insured does not exceed £500, instead of £200 as at present; and </para>
</item>
<item label="(c)">
<para>to provide a small increase in the minimum rates of surrender value laid down in the act. </para>
</item>
</list>
<para class="block">But we are given no opportunity to deal with such matters as industrial insurance, the value of which, as an investment, has become less attractive. Very often, those who have been paying in for twenty years have received back less than they paid in. It' is scandalous to think that a government which, because of its extraordinary majority in another place and its reasonable majority in this place should take advantage of the position to introduce so late in the session innumerable bills affecting matters of such great importance to the people of the nation. I submit that there is no way in the world by which the Government can justify this action. There is no valid argument against correcting it. I do suggest to the Leader of the Government in the Senate <inline font-weight="bold">(Senator Spooner)</inline> that he discuss with Cabinet the desirability of adopting a proper attitude towards these matters and the paramount importance of giving democratically elected representatives of the people a reasonable opportunity to debate legislation. The Government was taught a salutary lesson last night. I hope it will profit by that lesson. It is old enough to recognize the will of the people and, I hope, not so old as to forget its obligations to the people and their representatives. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2055</page.no>
<time.stamp />
<name.id>JZY</name.id>
<electorate>Western Australia</electorate>
<party>LP</party>
<role>Minister for Shipping and Transport and Minister for Civil Aviation</role>
<in.gov>1</in.gov>
<first.speech>0</first.speech>
<name role="metadata">PALTRIDGE, Shane</name>
<name role="display">Senator PALTRIDGE</name>
</talker>
<para>. - in reply - I am gratified, naturally, that the Opposition does not oppose the three small amendments which are proposed to the Life Insurance Act. Indeed, the amendments do no more than bring the act into consonance with modern times and modern conditions. With respect to the remarks of my good friend, <inline font-weight="bold">Senator Dittmer,</inline> regarding the lack of opportunity to discuss this measure, I merely point out that, during the two sessions this year both Houses of this Parliament have had abundant opportunity to address themselves to insurance matters generally. In the first session of the Parliament, this year, we had banking bills which afforded a broad opportunity to discuss investments of banks and insurance companies. The Budget session, of course, allowing, as it does, a broad scope, would again have given an opportunity to <inline font-weight="bold">Senator Dittmer</inline> to go into this subject in much more detail than he was able to do this morning. I can only say to him that it is not the intention of the Government, at any time, to stifle debate. For my own part, I would be prepared to sit here with him through the week-end and discuss insurance, but I am afraid that we would not get too many other senators to keep us company if we did that. </para>
</talk.start>
<para class="block">Question resolved in the affirmative. </para>
<para>Bill read a second time, and passed through its remaining stages without amendment or debate. </para>
</speech>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>COMMONWEALTH MOTOR VEHICLES (LIABILITY) BILL 1959</title>
<page.no>2056</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2056</page.no>
</subdebateinfo>
<para>Debate resumed from 27th November (vide page 2044), on motion by <inline font-weight="bold">Senator Gorton</inline> - </para>
<para>That the bill be now read a second time. </para>
<speech>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - The Opposition very warmly applauds this measure. It is a bill to put the Commonwealth into line with State law relating to death or personal injury sustained as a result of the negligent use of its motor vehicles on the road. It is interesting to note that there are some 31,000 Commonwealth vehicles on the road. That represents about one in 84 of the vehicles in use. </para>
</talk.start>
<para>The Commonwealth does not pay insurance premiums; it carries its own risks and at present whilst the Commonwealth is liable in respect of personal injury or death occasioned by any Commonwealth vehicle being used with its authority, it is not liable if the vehicle is being driven by an unauthorized person. The Commonwealth, of course, cannot be made liable at law for such unauthorized use of its vehicle. That position is covered in the States by thirdparty insurance schemes, which leave the registered owner liable even for the unauthorized use of his vehicle, and oblige him to insure against the possibility that he might have to meet a claim of that kind. </para>
<interjection>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator Wright</name>
</talker>
<para>- Is that the position under this bill? </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>- The position in the future will be that the Commonwealth will accept liability for any death or injury caused by the unauthorized use of its vehicle, whether the vehicle is used by a person in its employ without authority or by somebody who has stolen the vehicle. Up to date the Commonwealth has been liable solely for the actions of a user with its authority. This bill will put the Commonwealth, in relation to all persons, in exactly the same position as other vehicle owners under the third-party insurance scheme. </para>
</talk.start>
</continue>
<para>This is a bill that is, I suggest, long overdue. We warmly applaud it. The position formerly was that when the unauthorized use of a Commonwealth vehicle caused injury or death, the Commonwealth was prepared to make ex gratia payments. Its practice was to base those payments upon the relative level of workers' compensation benefit applicable in the circumstances. The Senate will recognize that that would be a lower level than the level of amounts that are awarded by juries for injury or death. </para>
<interjection>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator Wright</name>
</talker>
<para>- What amount is lower? </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>- The level of workers' compensation payments for death or injury would be much lower than would normally be conceded in a claim for damages for negligence. </para>
</talk.start>
</continue>
<interjection>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator Wright</name>
</talker>
<para>- The liability under this bill is not limited to workers' compensation benefits. </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>- No. I might repeat to the honorable senator what I. said. Prior to the advent of this bill, the Commonwealth was prepared to make ex gratia payments, but it confined its ex gratia payments to a level comparable with the level of payment under workers' compensation acts - in other words, to a much lower level than that of the damages an injured person might be expected to recover in a court. As this brings the liability of the Commonwealth in relation to death or injury caused by its motor vehicles into line with the Australia-wide practice, the Opposition welcomes and warmly applauds the measure. </para>
</talk.start>
</continue>
<para>Question resolved in the affirmative. </para>
<para>Bill read a second time. </para>
<para>In committee: </para>
<para>The bill. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2056</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate>Tasmania</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator WRIGHT</name>
</talker>
<para>.- I refer the Minister to clause 5 (1.) (a). Why is there a limitation to uninsured vehicles owned by the Commonwealth? An uninsured motor vehicle is defined as a vehicle in respect of which a third-party policy is not in force. What is the principle behind the exclusion of all vehicles other than uninsured vehicles? </para>
</talk.start>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KH5</name.id>
<electorate>Victoria</electorate>
<party>LP</party>
<role>Minister for the Navy</role>
<in.gov>1</in.gov>
<first.speech>0</first.speech>
<name role="metadata">GORTON, John</name>
<name role="display">Senator GORTON</name>
</talker>
<para>. - The reason for that is that although the Commonwealth does not insure its own vehicles, certain Commonwealth authorities in some instances may do so. These insured vehicles would be the subject of action in the ordinary way. </para>
</talk.start>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate>Tasmania</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator WRIGHT</name>
</talker>
<para>.- I suggest that there may be some discrimination if insured vehicles were excluded entirely from the application of this legislation, in which case liability would depend upon the old law and the recourse of the plaintiff would be limited to the amount of the insurance. In this case the Commonwealth is taking liability without qualification for all vehicles it owns. That seems to me to be a very wide principle. </para>
</talk.start>
<para>I agree with the merits in the purpose of the measure, but to take liability for every injury that has been caused by a vehicle, the ownership of which is still vested in the Commonwealth means determining 'questions of title and property and will govern liability although it may be that the Commonwealth has no connexion with the control of the activity out of which the accident arises. I have no doubt that the AttorneyGeneral's Department has submitted this provision to complete scrutiny; but I simply indicate that at the moment I have some query with regard to that. If this liability is attached solely to an uninsured vehicle then, taking the case of an insured vehicle in which the insurance is limited, say in the case of death, to £5,000, recovery action on the insurance company is limited to £5,000 but against the Commonwealth, in the case of an uninsured vehicle, it is unlimited. </para>
<interjection>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKenna</name>
</talker>
<para>- Would not the claim disregard the amount of the insurance and depend upon an assessment of the damage suffered? </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator WRIGHT</name>
</talker>
<para>- But we are thinking of what the injured party will recover. </para>
</talk.start>
</continue>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - I should like to clear up the matter which the honorable senator has raised. As I understand the position, the Commonwealth carries all insurance risks, whether for property or anything at all. It probably saves a great deal of money in the process, having resources to meet any claim. As I understand the third party system operating in the States, a person's liability is not limited to the amount for which he is compelled to insure. He is compelled to insure for a minimum, but the injured party may recover more than the amount for which the registered owner is obliged to insure. There is this distinction: In the case of the Commonwealth, which has the resources, the plaintiff is seeking to recover the sum for which he has obtained judgment. I think that is the point we are leading up to, is it not? </para>
</talk.start>
<interjection>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator Wright</name>
</talker>
<para>- Yes. </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>- Accordingly, it is an advantage over the plaintiff in an action under an insurance policy in the States who normally would not be able to recover more than the insurance proceeds, the registered owner not having the resources himself to meet it. </para>
</talk.start>
</continue>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate>Tasmania</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator WRIGHT</name>
</talker>
<para>.- The only thing is that if the insurance policy covering a vehicle owned by a Commonwealth authority is limited to £5,000, it seems to me on reading this bill that the liability of that authority extends to the driver only. He is, in fact, the agent acting within the scope of his employment. The liability that the Commonwealth is accepting under this bill is not extended to the case of the unauthorized driver - the soldier who takes a motor truck off the picket lines at night and ends up in the first creek. If that vehicle were owned by a Commonwealth authority, it would seem to be not te be embraced within the scope of the bill. </para>
</talk.start>
<interjection>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKenna</name>
</talker>
<para>- The practical answer is that no Commonwealth vehicle is insured </para>
</talk.start>
</interjection>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2057</page.no>
<time.stamp />
<name.id>KH5</name.id>
<electorate>Victoria</electorate>
<party>LP</party>
<role>Minister for the Navy</role>
<in.gov>1</in.gov>
<first.speech>0</first.speech>
<name role="metadata">GORTON, John</name>
<name role="display">Senator GORTON</name>
</talker>
<para>. - I am told that a Commonwealth authority vehicle can be insured. That is the point which <inline font-weight="bold">Senator Wright</inline> is making. One of the minor points raised was whether damage caused by an unauthorized driver would be compensated for under an insurance policy of this kind taken out by a Commonwealth agency. 1 am informed that the answer is that it would be. </para>
</talk.start>
<interjection>
<talk.start>
<talker>
<page.no>2058</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator Wright</name>
</talker>
<para>- Without limitation? </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2058</page.no>
<time.stamp />
<name.id>KH5</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">GORTON, John</name>
<name role="display">Senator GORTON</name>
</talker>
<para>- 1 was moving on to limitation. The honorable senator raised two separate points: First, would it be covered; and secondly, to what extent would it be covered. I am unable to get definite information as to whether, and in what cases, there is any limitation placed on the amount for which a Commonwealth vehicle, or a Commonwealth authority's vehicle, would be insured. Such vehicles would be insured, I suppose, in accordance with the laws of the States in which they were operating and would be on the same basis as a private motor vehicle insured for third-party purposes. I think that the net result is that a person knocked down by an insured or uninsured Commonwealth vehicle, or Commonwealth authority's vehicle, would be able to claim and receive damages from an insurance company in a State in the same way as if he had been knocked down by a vehicle owned by a private citizen in that State. </para>
</talk.start>
</continue>
<para>Bill agreed to. </para>
<para>Bill reported without amendment; report adopted. </para>
<para>Bill read a third time. </para>
</speech>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>TAXATION ADMINISTRATION BILL 1959</title>
<page.no>2058</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2058</page.no>
</subdebateinfo>
<para>Debate resumed from 26th November (vide page 1866), on motion by <inline font-weight="bold">Senator Paltridge</inline> - </para>
<quote>
<para class="block">That the bill be now read a second time. </para>
</quote>
<speech>
<talk.start>
<talker>
<page.no>2058</page.no>
<time.stamp />
<name.id>JQN</name.id>
<electorate>Western Australia</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">COOKE, Joseph</name>
<name role="display">Senator COOKE</name>
</talker>
<para>. - The bill seeks to create an additional statutory position of Second Commissioner of Taxation. It is interesting to note that the administration has been carried on under the Commissioner and one Second Commissioner since 1916 despite the great increase in the number of fields of Commonwealth taxation and in the number of sections that have been established in the intervening years to 1959. It is only now that this step is being taken to create the position of a statutory Second Commissioner. It is a wonder to many how the </para>
</talk.start>
<para class="block">Taxation Branch has been able to continue under the administration of only the Commissioner and one Second Commissioner. We must presume that a certain amount of authority has been delegated by those two officers to Assistant Commissioners, Directors and Deputy Commissioners. </para>
<para>The Opposition finds no reason to oppose the bill, and it does not do so. However, 1 do wish to suggest to the Government that Opposition senators think that the various forms of taxation should be reduced to a minimum, particularly in the field of indirect taxation. For very many years we have been promised that indirect taxation would be lessened. The various indirect taxes that have been imposed upon the people were imposed for some special purpose. Apparently the special purpose has never ceased to exist and so the taxation field has become broader and the work of the Taxation Branch has increased. We cannot blame the branch for that, but the people of Australia are groaning under the burden of the many forms of taxes. </para>
<para>The Opposition feels that the Government should give early consideration to fulfilling the many promises that have been given to the people to relieve them of sales tax, pay-roll tax and other indirect taxes that have been imposed. We are approaching Christmas time. If Father Christmas promises to bring something and then does not do so because sales tax has put the price of a gift beyond the means of the would-be donor, great disappointment is caused. The Government has promised to give relief to the people from the burden of these indirect taxes, but nothing has been done. I hope that with the appointment of this Second Commissioner the Government will be able to give effect to the promises it has made to the public. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2058</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate>Tasmania</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator WRIGHT</name>
</talker>
<para>.- I want to make only one comment on this bill. We ought not to forget the grave responsibility and great authority and powers which, under modern taxation laws, are conceded to the Commissioner of Taxation, the Second Commissioner and now the second Second Commissioner. It is of the greatest importance that the very delicate decisions that have to be made by these officers in relation to people's motives and intentions - decisions which involve large taxation liability - shall be soundly based. We, therefore, must have faith in the integrity of these officers. </para>
</talk.start>
<para>I have mentioned this subject because I hope that the taxation committee of inquiry which the Government has promised to sei up will take it into review. The amount of money that the decision of one man, as an authority of the Taxation Branch, can involve, is ever so much greater to-day than it was when this legislation was originally passed and these wide powers were conferred on taxation officials. </para>
<para>We must be constantly on guard to see that the exercising of this terrific power is not the subject of even a suggestion of abuse. Although no such suggestion has been made in relation to officers in the higher, levels, complaints are coming forward in increasing numbers that junior officers, in cases where a decision depends upon their advice, are using investigational procedures which have given taxpayers the impression that in spite of the merits of their case it is better not to resist. </para>
<para>I mention this matter because I have striven in the Senate to prevent the inclusion in legislation of powers which will make liability a mere matter of opinion. I hope that the Minister in charge of the measure will be on the alert when the inquiry committee is functioning, and will realize that there are some who are mindful of the necessity to have decisions on liability based on a sounder foundation than the opinion of only one officer, whether he be called the Commissioner of Taxation, the Second Commissioner, the second Second Commissioner or an assessor. If such decisions can be concluded by one officer, injustice may be done to individual taxpayers. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2059</page.no>
<time.stamp />
<name.id>KTN</name.id>
<electorate>Tasmania</electorate>
<party />
<role>Leader of the Opposition</role>
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">MCKENNA, Nicholas</name>
<name role="display">Senator McKENNA</name>
</talker>
<para>. - I take only one moment to express to the Commissioner of Taxation, the Second Commissioner and other officers of the Taxation Branch, our indebtedness as an Opposition for the explanatory memoranda which are always submitted with bills that emanate from that branch. It is an enormous service to members of the Parliament in this highly complex field. Only those who have taken a real interest in it have any idea of its complexities. </para>
</talk.start>
<para>I am continually staggered that only one or two men are charged with the full administration of such a difficult field. I agree entirely with what <inline font-weight="bold">Senator Wright</inline> has said. The standard of efficiency and integrity in the Taxation Branch is exceedingly high. In fact, there is nothing higher in the Commonwealth Public Service. From time to time I make aproaches on behalf of constituents and I am continually impressed by those two qualities at all levels. Above all, I am impressed with the common sense that is displayed by the officers and, what often is not appreciated, the very broad humanity of the branch generally. Although the Taxation Branch comes in for objurgation in particular cases, I take this opportunity to say that I have enormous confidence in <inline font-style="italic">its</inline> administration. </para>
<para>Question resolved in the affirmative. </para>
<para>Bill read a second time, and passed through its remaining stages without amendment or debate. </para>
</speech>
</subdebate.1>
</debate>
<debate>
<debateinfo>
<title>SUPERANNUATION BILL 1959</title>
<page.no>2059</page.no>
<type>bill</type>
</debateinfo>
<subdebate.1>
<subdebateinfo>
<title>Second Reading</title>
<page.no>2059</page.no>
</subdebateinfo>
<para>Debate resumed from 26th November (vide page 1870), on motion by <inline font-weight="bold">Senator Paltridge-</inline></para>
<quote>
<para>That the bill be now read a second time. </para>
</quote>
<speech>
<talk.start>
<talker>
<page.no>2059</page.no>
<time.stamp />
<name.id>KBC</name.id>
<electorate>Western Australia</electorate>
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WILLESEE, Don</name>
<name role="display">Senator WILLESEE</name>
</talker>
<para>.- I move- </para>
</talk.start>
<quote>
<para>Leave out all words after " That ", insert " the bill be withdrawn and re-drafted because it fails to make provision for an increase in the value of the unit of pension and because it fails to come into operation from the 1st July, 1959 ". </para>
</quote>
<para>I move this amendment to the motion for the second reading, <inline font-weight="bold">Mr. President,</inline> because, possibly for the last two years, people who have had a life-long association with the Commonwealth Public Service have been waiting for some lift in the value of the superannuation unit. I know that there are more ways of killing the cat than hangit up by a string. Nevertheless, almost the traditional way of assisting contributors to the Superannuation Fund is by increasing the value of the unit. We must remember this this superannuation scheme is a mutual arrangement between the Commonwealth and the contributors. Contributors might start contributing at the age of about fourteen, when they join up as very junior officers in the service and pay contributions right up to the day when they become 65 years of age. Superannuation is not only an important part of their industrial life, but also something which affects their families and their standard of living on retirement. I think that since 1922, when the original bill was introduced, and when the value of the unit was 10s. - 5s. being contributed by the Government and 5s. by the public servant - the value of the unit has been increased on three occasions, and has moved somewhat disjointedly to 17s. 6d. I say " disjointedly ", because the units were not always of equal value during that time. 1 would say that there is a clear case for an increase in the value of the unit at this stage. In my opinion, it might well be increased to more than £1 but, conservative as we all are, and allowing ourselves to drop into the habit of doing what has been done in the past, an increase of 2s. 6d. naturally implants itself in my mind. </para>
<para>The purpose of the bill is to give some help to contributors to the Superannuation Fund. I ask the Minister, when he is speaking in reply, to deal with my objection to a fact which is apparent in the bill - that it will help people on the higher and middle incomes to a greater degree than it will help people on lower incomes. In fact, the only people who will be materially assisted by the bill are those in the higher and middle income ranges, not those on the lower incomes. I know it may be said that an adjustment was made in 1954 in respect of those people, but I point out, in answer to that, that this bill merely picks up the 1954 adjustment and takes into account increases since then. </para>
<para>The lower income pensions, <inline font-weight="bold">Mr. President,</inline> were then fixed at 70 per cent, of the salaries of the officers concerned, and I understand that the Commonwealth provided half of the total contribution. As I understand it, in the higher salary range, up to the then maximum salary of £4,000 a year, which was the salary received by heads of departments - since increased to £6,000 maximum - the pension was fixed at 40.9 per cent, of salary. Had we had more time to study this measure I might have been able to look up the history, so to speak, of superannuation pensions and inform the Senate of it. However, at the moment, I do not quite see how the point was fixed at which the rate of pension moved from 70 per cent, of salary down to 40.9 per cent, of salary. 1 should like to know, for instance, the proportion of pension to salary that applied to a £3,000 a year salary when the maximum salary rate was £4,000. </para>
<para>It is true that something had to be done, because the proportion of pension to salary had dropped back to 59.6 per cent, in the case of people on lower and middle incomes and, in the case of those in the upper limits, to 27.3 per cent. The Government has adopted the principle that has been used since 1922 - that is, to take the number of units permissible to be taken out at the various levels, and recast the scale so that more units could be taken out. The maximum number of units that may be taken out is to be increased from 36 to 54. The maximum pension, which will be that applying to a salary of £6,000 a year, will be £2,457 a year. </para>
<para>Now I raise a query. Should it be necessary to take those pensions to that height? Do not think for one moment that I am advocating smaller pensions, particularly for people who have devoted the whole of their lives to the Public Service, and who contributed so much towards their pensions in the years when they were junior officers and when it was a real hardship for them to contribute to the Superannuation Fund. However, because I feel that people on the lower salary ranges could have been helped more by this measure, I am wondering whether it is necessary to maintain the ratio of 40.9 per cent, between pension and salary at the £6,000 salary level, which is a fairly high salary. I raise this matter merely for future reference, because it is quite obvious that, as a result of inflation, there will have to be continual and progressive upward adjustments of salaries for probably as long as any of us here will be on this earth. I wonder whether some thought should not be given to whether it is necessary to take these pensions up into this upper limit. </para>
<para>The increase in the number of units that may be taken out by a contributor applies to public servants receiving more than £1,365 a year. The thought comes to my mind that that base figure of £1,365 means the exclusion of a terrific number of people in the Public Service from any benefit from the increase of units that may be taken out - and these are the people who really need help. I refer to people in the Fourth Division who are doing the more menial jobs in the Public Service - people like lift drivers, cleaners, linesmen, motor drivers, and all the rest. I am wondering whether that consideration is to be kept in mind in relation to any future adjustments. </para>
<para>I note that the Commonwealth under this measure is adhering to the previous contributions ratio. The contributor will contribute two-sevenths of the amount necessary to produce his pension, and the Commonwealth the remaining five-sevenths. The contribution ratio has been generously amended in the last few years in favour of the contributor, but I wonder whether the Government has decided not to spend any more money than is necessary on superannuation, and whether this has led to the fixing of the amount of £1,365 to which I have referred. It would be very difficult for the Government to show any justification for saying, " We will not spend more than is necessary on superannuation. We shall adjust the scheme in such a way that the increase in the number of units, in respect of which we contribute, will apply mainly to those on the higher salary scales ". I do not think that that could be justified for one moment. </para>
<para>I do not intend to go through ail the provisions of the bill, but I should like to refer to one of them. People within eight years of retirement, particularly senior officers, who decided to contribute for a maximum of 54 units instead of the previous maximum of 36, would find the cost just about prohibitive. The Allison committee, I understand, looked only at the Defence Forces Retirement Benefits Fund. I do not think it looked si the Superannuation Fund, but on that point I would like to be corrected if I am wrong. </para>
<interjection>
<talk.start>
<talker>
<page.no>2061</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WRIGHT, Reginald</name>
<name role="display">Senator Wright</name>
</talker>
<para>- I do not think any of us have had access to that report officially. </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2061</page.no>
<time.stamp />
<name.id>KBC</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WILLESEE, Don</name>
<name role="display">Senator WILLESEE</name>
</talker>
<para>- No, not that I know of. The Allison committee, I understand, recommended that the amount of money required by an officer who is within eight years of retirement to pay for the extra units that he must take out, be considered, if the officer so chooses, as a debt payable by him on his retirement, if his furlough payment will be sufficient to cover the amount due. It is one of the peculiarities of the Commonwealth service, and one of the ways in which it differs from the State services, that furlough is allowed to accumulate as a sort of insurance. Throughout my association with the Commonwealth Public Service I have always questioned the wisdom of this. Furlough was never meant to be used as an insurance, lt was never meant to be used for the purpose of stacking up six months' or twelve months' salary, so that it can be drawn as a kind of retiring allowance or paid to the widow in the event of the officer's death. However, this practice which has grown up in the Commonwealth Public Service is now being enshrined in an official document. </para>
</talk.start>
</continue>
<para>I am not suggesting that the Commonwealth Public Service should do what is done in some of the State services, where an employee might be told, perhaps by telephone, one night that he will be on furlough as from the following morning. Annual leave and furlough are not of much benefit if they are to be forced on a person at short notice in that narrow fashion. But to allow the furlough to accumulate throughout the life of an officer is not in his best interests, and the service is certainly not getting any value from it. A man should be allowed to enjoy a rest period, to get away from his problems, or perhaps to take a bird's eye view of them. He should be able to enjoy a physical and mental rest. </para>
<interjection>
<talk.start>
<talker>
<page.no>2061</page.no>
<time.stamp />
<name.id>KOW</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">HENTY, Norman</name>
<name role="display">Senator Henty</name>
</talker>
<para>- He endangers his health if he does not take his holidays. </para>
</talk.start>
</interjection>
<continue>
<talk.start>
<talker>
<page.no>2061</page.no>
<time.stamp />
<name.id>KBC</name.id>
<electorate />
<party />
<role />
<in.gov>0</in.gov>
<first.speech>0</first.speech>
<name role="metadata">WILLESEE, Don</name>
<name role="display">Senator WILLESEE</name>
</talker>
<para>- That is the very point, but the Government is encouraging public servants to continue to follow this practice of accumulating leave. I admit that if an officer is within eight years of retirement it may not be of much benefit to him to take furlough, but I believe that the whole matter of furlough has been mishandled by the Commonwealth. I do not suggest that we should adopt the narrow concept of some of the States, but I believe there is a happy middle way. </para>
</talk.start>
</continue>
<para>I return now to the report of the Allison committee. As I understand the position on the defence forces - and I stand subject to correction on this - officers retire at much earlier ages than in the case in the Commonwealth Public Service. I believe that the retiring age varies according to an officer's rank. I think a major retires at about 47, and the higher the rank the further up the age scale you may go before retiring. Therefore I do not see how you could apply the same conditions to the Commonwealth Public Service as apply to the defence forces in the matter of the provision for an officer within eight years of retirement. </para>
<para>The amendment increasing the widows' pension from one half to five-eighths of the pension payable to the contributor is a welcome one. I think most of us who contribute to superannuation schemes would agree that our greatest solace is the thought that in the event of an untimely death the widow is provided for. I believe this amendment will be welcomed by the contributors probably more than any other section of the legislation. The Minister said in his second-reading speech - </para>
<quote>
<para>The cost of this increase - </para>
</quote>
<para class="block">He was speaking of the increase in the widow's pension - will be met by the Commonwealth, but the bill provides that the portion of any surplus revealed at the seventh quinquennial investigation of the fund which is- attributable to married contributors who have retired or died will be applied towards the cost of the increase. The five-eighths widow's pension will be a basic feature of the superannuation scheme for all future contributors, who will be required to pay contributions at an increased rate in order to provide this new benefit. Those who are now contributing to the fund will have an option to take up the additional widow's pension provided they meet their proportion of the additional costs in extra contributions. </para>
<para class="block">There seems to be an inconsistency there. The Minister said, first, that the surplus revealed - and I understand this seventh investigation has already taken place, so that the amount available should be readily determinable - will go towards the cost of the increase, so reducing the Commonwealth's liability. But he then went on to say that some contributors would have to make extra contributions to pay for the increase in the widow's pension. Whether the Minister has in mind that -some contributors, because of their lower salaries, will not be able to afford the extra units I do not know. </para>
<para> The provision for reserve units was introduced some time ago. It was a very popular measure. It allows an officer to take out reserve units, so that, when he hits a higher salary, he can convert those reserve units to. active units and continue to pay for them at the lower rate. It is proposed to increase from four to eight the number of reserve units that may be taken. This is a welcome amendment, and will help public servants in their continuing struggle against the forces of inflation that are sending up salaries and, consequently, increasing the contributions that have to be made to the fund. </para>
<para>I have little more to add. Naturally, we welcome any increase in payments under the scheme. I think there will be some disappointment at the fact that a flat rate of increase over the whole of the range has been provided. I know that many difficult problems are met in dealing with a large service like the Commonwealth Public Service. As soon as you provide for increased contributions in the lower salary ranges you involve a tremendous number of people, who are doing most essential jobs. In the field of pensions or superannuation, you must always watch the interests of the person on the lower salary. </para>
<para>I have given just a brief survey of the legislation, <inline font-weight="bold">Mr. Deputy President.</inline> This is by no means a small bill, and I regret that I have not had more time to debate it. I would have welcomed the opportunity to go through it thoroughly. It occurs to me also that this is a bill to which the Senate might well have applied itself over a period of time. I believe that we might even have gone to the extent of appointing a select committee to examine it. The Superannuation Fund is assuming gigantic proportions and affecting large numbers of people. There are more people in the Commonwealth Public Service than in any other service or any private industry in Australia. Therefore, I believe this legislation could have been examined by a select committe. </para>
<para>With those few words I commend my amendment to the Senate. </para>
</speech>
<speech>
<talk.start>
<talker>
<page.no>2063</page.no>
<time.stamp />
<name.id>KBW</name.id>
<electorate>Tasmania</electorate>
<party />