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Mr. Menzies Announces Liberal Party's Platform
EXPLANATION OF TAX
PROPOSALS
Plans To Aid Production
And Industry
MELBOURNE, August 20.
In his policy speech at the Camberwell Town Hall
tonight, the leader of the Federal Opposition
(Mr. Menzies) said that the Liberal Party
proposed that, from January 1 next year, the
reduced rates of personal income tax now
operating should be further reduced by
another 20 per cent, all round.
That would mean that the total ultimate redaction of
personal income tax rates daring the second half of
the year would be about 30 per cent., and not 25 per
cent, as the party had contemplated. That would be
a bold step, bat not bolder than the circumstances
required.
Mr. Menzies said that the
Governments 11 per cent, cut
?was now operating for the cur
rent financial year. The Libe
ral Party did not propose to
make any additional tax cut retro
spective, chiefly because the con
trol of public expenditure bad not
been in its bands for the current
half-year.
In addition, Mr. Menzies said, the
rates of company tax, which at
their present level had a depress
ing effect upon employment, would
be reviewed.
"We shall also re-examine the
Fales tax with a view to relieving of
such tax those commodities which
directly affect the cost of living of
the basic wage earner and the cost
of housing," he added. "We pro
pose also (o liberalise from-time to
time the allowances that are made
for dependent children, medical and
dental expenses and education.''
Commonwealth expenditure would
continue to be so substantial that
heavy taxation would be needed for
come time. His party believed,
however, that some very prompt
and large relief must be given to
the people if there was to be a
restoration of Incentive to produce.
Before Mr. Chifley made his re
cent tax concessions, the Liberal
Party considered that the reduction
in the rates of personal income tax
for 1946-47 should be 25 per cent
His party realised, as the Govern
ment did not, that such tax reduc
tions would not cost as much as
appeared, because reduced taxes
meant increased incentive and
larger earning and buoyant
Treasury revenues.
-We Liberals believe tnat the
first duty of the individual is a
social duty.'' he added. We be
lieve that private business must,
as a condition of its existence, ob
teerve liberal and humane indus
trial and social standards. We
believe that we must have an ade
quate system of payments for old
age, incapacity, sickness, medical
expenses, unemployment, widow
jhood and family endowment.
-If we are returned to office we
can quite confidently say that no
Australian citizen who is today in
rece.pt of social a^fnf. nfli be
any worse off." he continued.
"We talk of primary production
all too frequently as if the task
were merely that of stabilising
prices for our prisHng production.
The truth is that the great prob
lem is that of so increasing the
production of coal, water supply,
electric supply and transport that
our countryside will be not only
used to the utmost of its capacity,
but will enjoy the same kind of
stability and the same amenities
of life as exist in the cities.
"In brief, our can is one to growth
and expansion," said Mr. Menzies.
"Should you return us to office,
we win establish a Ministry of
Development. We will take the
lead in establlsh'ng teams of ex
perts to seek out and plan de
velopmental schemes. We will spend
more and more upon research."
Where development required
joint action by Commonwealth
and States, the Stages would be
called into consultation and joint
authorities would be set up, Mr.
Menzie? promised. Where some
special region cried aloud for de
velopment the Liberal Govern
ment, in consultation with the
States, would aim at the establish
ment of regional authorities.
Industrial Peace
Strikes and other forms of direct
action were the greatest factors
now standing in the way of pro
duction, higher real wages and the
restoration of real freedom. Mr.
Menzies contended.
At the one end strikes had been
fomented by the Communists and
at the other they bad been en
couraged by the fact tbat the Labor
Government had made it clear
that under no circumstances would
the industrial law be enforced
against an organised body of em-
He added:—?The Liberal Party
stands for good wages and condi
tions; for the prompt re-examina
tion of the basic wage by the Arbi
tration Court, the' wage-pegging
regulations being relaxed to include
any new basic wage so determined:
for the provision of adequate tri
bunals for the timely rectification
of grievances: for incentive pay
ments beyond the minimum; for
profit sharing wherever it is prac
ticable: for ample security against
unemployment, old age and sick
ness; for a close, generous ad
friendly contact between employer
and employe; for a fair day's work ?
for a fair day's pay. It believes in!
trades unionism and in the protec-;
tion by law of the rights secured
by wage-earners.
"We reject the idea (hat indus
trial arbitration and direct action
can live side by side. Law and law
lessrcss are irreconcilable.*'
It was therefore proposed:—
(a) That all strikes and lock-outs;
occurring in the course of indus
trial disputes for which some
competent tribunal exists, or
against a decision of the compe
tent tribunal, shall be declared
illegal.
<b) That there shall be prosecution
and a resolute enforcement of
penalties against those organis
ing, encouraging, or takin; part,
in such illegal strikes or lock
outs.
Cc) That the funds ot any organi
sation of employes or employers
guilty of an illegal strike or lock
out shall be controlled by the
Arbitration Court,
(d) That it shall be a condition or
registration of an organisation
that its rules shall provide for
the election of office-bearers and
the malrjTijr of decisions involving
stoppages of work by a secret bal
lot of aU members under the
supervision of an officer of the
Arbitration Court.
"This policy against direct action
is not a restriction of freedom: ir
is a restraint upon anarchy." he
said. "One coal miner's freedom to
strike means that ten other men
in factories are denied their free
dom to work because the factory is
without coal."
Child Endowment.
Mr. M^nTiffs reaffirmed his
party's intention to expend child
endowment to toe first child. This
would rot only bring the basic wage
nearer to reality, he said, but would
express in concrete terms the
Lateral belief that the family was
the most precious of all social units.
Discussing the problem of re
establishing former members of the
fighting services. Mr. Menzies de
clared that the Liberal Party stood
for real preference, not the "easily
evaded provision of the recent Act ~
It disapproved of an artificial time
limit.
Some partially disabled men
might require preference all then
lives, others might be rapidly ab
sorbed into skilled and effective
work. The Repatriation Act. the
Rehabilitation Act and other
legislation concerning the welfare,
happiness, and health of ex-ser
vice men and wrtnen would be over
hauled as soon as the Labor Gov
ernment was displaced with a view
co the rectification of anomalies.
"I say to you on behalf of
a party . the great majority of
whose candidates are ex-ser
vicemen, that we shall re
gard it as our first duty to see that
there is speed, justice, and under
standing in our administration of
soldier problems, and in the finan
cial treatment which we accord
them,'" said Mr. Menzies.
"In particular we will restore life
to war service homes building, ad
just the anomalies which are aris
ing in relation to the collection and
use of service allotments, deferred
pay. and war gratuities, particu
larly by war widows and depen
[ dants. We shall review war pen
sions, including those of depen
- dent parents and widows, in the
light of actual costs of living."
Criticising delays in soldier
' settlement. Mr. Menzies declared
bis party's advocacy of single farm
settlement as well as group settle
! ment.
Wartime Controls*
?| The Liberal Party would un
hesitatingly maintain price con
trol as a means of preventing infla
tion during the period in which
production was inadequate to
meet the demand for goods which
arose from the enormouslv in
creased purchasing power of' the
people, said Mr. Menzies.
I "If we rely entirely upon
artificial restrictions and pay onlv
minor attention to the problem of
restoring production, the inevitable
result will be that the competition
of money for a limited supply of
goods will lead to an increase in
deplorable "black market' trans
actions, and will ultimately render
price control unenforceable." he
said.
"If. on the other hand, while
maintaining price control during
the transition period, we concen
trate our major attention upon in
creasing production, we will all the
sooner reach Hie point at which full
production of gcods will result in
competition among sellers as well
as among buyers."
The Liberal Partv would at once
institute a searching enquiry into
all Government departments with
a view of eliminating those whose
legitimate function had ended and
reducing those whose functions had
lessened, be said.
Primary Industries
The Liberal Party, in all cases
where producers expressed their
approval by ballot, stood for rural
stabilisation and schemes based,
wherever practicable, upon guar
anteed minimum prices. Such
basic prices should always be re
lated to the true costs of reason
ably efficient production, plus a
reasonable margin of profit
It was theiefore proposed'to es
tablish a Stabilisation Board for
primary industries, competently
constituted for a periodical review
of cots and recommendation to
Parliament as to the basic price
actually needed.
He had referred to the need for
constantly investigating costs, be
cause the Liberal Party believed
that rural workers must be given
pay and conditions comparable
with those enjoyed by city jrorfcers.
S&ould bis party be returned, it
would collaborate with the State'
and the industries concerned in
the application of the principles
he had enumerated.
In particular, among basic in
dustries, it would pay attention
to the seriously neglected fishing
industry and "encourage the full
tesumption of gold production.
No person who enjoyed any
social service payment today would
have it taken away or reduced by
a Liberal Government, said Mr.
Menzies. The Liberal Party's
real dispute with Labor was over
the priniciple and method of con
tribution. It believed that in
future income earners should each
contribute to a contributory social
insurance scheme, and that every
contributor would have the right
to his benefit without means test
at aIL Be would collect because
be was a contributor and not be
cause he could prove poverty. Na
tional insurance was democratic
fan- and self-respecting.
There would, of course, remain
many people who could not be
come contributors. They would re
main the responsibility of the Gov
ernment.
"We believe that the adoption of
our policy will restore to our
people the incentive to personal
thrift and the pursuit of personal
independence,* 1 Mr. Menzies said
"The non-contributory system dis
rourases thrift by penalising it
and making it appear that it does
not matter anyhow. We shall
encourage voluntary schemes of
insurance or benefit additional to
those established by the Govern
ment."
Housing
Declaring that Australia needed
700,000 new homes in the next ten j
years, calling for a productive ef
fort in bousing almost twice as
great as before the war. Mr. Men
zies said that the Liberal Party be
lieved:—
That the encouragement of home
ownership was of vital impor
tance, and that Commonwealth
flnannini assistance must be
directed primarily to that end.
That every impediment to the pro
duction and transport of building
materials and household re
quirements must be removed, the
Commonwealth collaborating by
appointing a first-class business
executive Cas in the case of mu
nitions) to break bottlenecks.
That there must be continuity of
work, "go slow" movements be
ing nothing but robbery of those
many thousands of otiber wor
kers who were wanting homes.
That both builder and employe
should have an incentive to bet
ter production by substantial
cuts in the rates of tax.
That sales tax upon building ma
terials and essential household
fittings should be abolished.
That the fullest use should be made
of the private builder whose ex
perience, costs of production,
supervision and efficiency are
likely to be much better than
those of new and unwieldy Gov
ernment housing authorities. !
That prices of materials, home!
equipment and building sites
must continue to be controlled
during the period of acute shor-
That the building of homes must
have priority over all other forms
of building, and over public
works other than those which are
closely related to housing (such
as water and lighting) or are of
urgent national developmental
importance. ~
Foreign Policy
Turning to foreign policy. Mr.
IMwirfes said that the Liberal Party
would seek a closer integration of
the British countries and would
endeavor to secure on all major
matters of international arrange
ment involving world security a
united British Empire policy and
voice. It would further, within the
Empire, the system of bade prefe
rence and would accept a full share
in co-ordinated schemes of Empire
defence
There must be established early
in the new Parliament an all-party
Parliamentary Standing Commit
tee on Foreign Affairs to act, not
as the creator of policy, because
that was the privilege and respon
sibility of the Government of the
day. but as a .source of information
to the Parliament itself.
"We support and will do all in
our power to assist the renewal and
development of international trade,
and will in a sympathetic way ex
smine all proposals for stabilising
the international exchanges," he
added.
The Government bad com-'
pJetely failed to realise the impor
tance of the post-war defence
problem, said Mr. Menzies. Its
half-hearted attempts to create'
interim forces merely indicated an |
unwillingness to face the fact that <
thousands of splendid men would1
be lost to Australian defence un-i
less the minimum requirements of
the various arms were promptly
examined and decided.
If one thing emerged clearly
from the war it was that there
must be a redistribution of Empire
defence responsibilities and re
sources and an acceptance by Aus
tralia of her full share or the com
mon task. I
I The Liberal Party therefore
wkile working strenuously for
peace, stood for:—
Universal training or a kind suited
to Australia's obligations, for a
period to be determined upon
the best modern expert advice,
such training to embrace medi
cal and dental inspection and
treatment and all other elements
calculated to produce national
fitness.
The maintenance of permanent
nucleus forces, with special fa
cilities for military research and!
overseas experience. *
Mi adequate permanent balanced'
air force, supplemented by citi- ?
zen air forces and equipped and'
trained for close ESnpire co-ODe- <
ration.
A Royal Australian Navy, backed
by adequate constructional, dock
ing, and repair services, and
working in close co-operation
with the Royal Navy.
The maintenance of munitions
production, with such a liaison
with private engineering produc
tion as would ensure a rapid
transition to war production in
the event of war.
Effective permanent staffs for the
co-ordination of all arms and
for co-operation between Aus
tralia and other British coun
tries
! Immigration
The greatest efforts to develop
Australia would come to nothing
unless we could attract large num
bers of people from other parts of
, the world,, continued Mr. Menzies
Unassisted by migration. Australia
was not Ukelv to exceed a popu
lation of eight millions in the
course of this century. If anyone
supposed that with such a popula
tion we should be left undisturbed
indefinitely by the rest of the world
he was living in a fool's paradise.
"Frankly, we of the Liberal Party
do not Clink that the present Cov
: ornment means business." Mr
Menzies said. "It has adopted the
view that immigration is undesir
: ible so long as we have local prob
lems of an industrial and econo
mic kind to solve. To this we re
tort that if we wait for economic
perfection before building up our
population we shall some day find
. that our lack of population has in
; vited an attack in which our en
tire economy has been destroyed."
Referring to secondary indus
try. Mr. Menzies said that what
Australia would now have to aim at
was the opening of overseas mar
kets for her manufactured goods.
"We hcve, particularly in tb*
next few years, a marvellous op- !
portunity which may not cornel
again for a long time." he said
"But that opportunity cannot be
seized by a Government which
feebly allows a handful of Com
, munists to dictate our waterside
and foreign policies and which ha?
: already done so much to damage
our potential trade with neighbor
in? Eastern countries."
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