Queensland

Parliamentary Debates [Hansard]

Legislative Assembly

WEDNESDAY, 13 SEPTEMBER 1961

Electronic reproduction of original hardcopy

320 Address in Reply [ASSEMBLY] Questions

WEDNESDAY, 13 SEPTEMBER, 1961

Mr. SPEAKER (Hon. D. E. Nicholson, Murrumba) took the chair at 11 a.m.

QUESTIONS

TRAFFIC CROSSINGS FOR BLIND PERSONS Mr. BROMLEY (Norman) asked the l\1 inister for Labour and Industry- " In view of his action in having installed traffic and pedestrian lights in Cornwall Street, Annerley, near the Blind Institution, which have brought forth many words of commendation, will he consider the erection of two inexpensive signs, reading "Blind persons cross here" in Cornwall Street, Thompson Estate, to be placed one on each side of Cornwall Street on opposite approaches to Bus Stop 17 near Knight Street?" Hon. K. J. MORRIS (Mt. Coot-tha) replied- "This matter will be investigated, and if found that blind people also regularly cross at this point, as well as the other, the signs will be erected."

EXPENDITURE ON BURANDA SCHOOLS Mr. BROMLEY (Norman) asked the Minister for Education and Migration- "Excluding normal supplies of essential school requirements, how much money has been spent on improvements and maintenance from July 1, 1960, to June 30, 1961, on (a) Buranda Girls School, (b) Buranda Boys School, (c) Buranda Infants School and (d) East Brisbane State School?" Hon. J. C. A. PIZZEY (Isis) replied- "The Honourable Member is informed that expenditure on improvements and maintenance at the three Buranda Schools and at Brisbane East State School during the period from July 1, 1960, to June 30, 1961, was as follows:-Buranda Boys State School, £292 12s.; Buranda Girls State School, £193 13s. 7d.; Buranda Infants State School, £309 7s. 7d.; Brisbane East State School, £1,219 2s. 5d."

BLACK LIST AT COLLINSVILLE Mr. DUGGAN (Toowoomba West­ Leader of the Opposition) asked the Minister for Public Works and Local Government- "Is it a fact that the black list, which has been operated against unemployed in Collinsville by the Scottsville Mine, a sub­ sidiary of Mount Isa Mines, and the Davis Brothers' open-cut, has now been Questions [13 SEPTEMBER] Questions 321

adopted by the Wangaratta Shire Council, Roads (Contribution to Maintenance) Acts. whose engineer ignores the Collinsville The following table illustrates the Clerk of Petty Sessions office, where the position:- unemployed are registered, and will not call for labour from that office?" 1957-1958 1960-1961 1. Average number of men Hon. H. RICHTER (Somerset) replied- employed on Main "! have no knowledge of the black list Roads works- (a) by Main Roads mentioned by the Honourable Member. Department . . 1,885 2,116 Enquiries disclose that it has been the (b) by Councils. . 2, 722 2, 819 practice for some years past for the 2. Grants made by the Wangaratta Shire Council to select labour Government to Coun­ cils- from applicants recorded in the shire office (a) Under Common- as unemployed and seeking employment wealth Aid Roads Act £1,250,000 £1,828,500 (b) Under Roads (Con- with the Council. The matter is one of tribution to Main- policy entirely in the hands of the Council." tenance) Acts £65,350 £475,575 (a)

(a) The collection of these charges commenced in NUMBER OF EMPLOYEES IN DEPARTMENT OF February, 1958. This represents the disbursement of MAIN ROADS collections for one quarter only." Mr. DUGGAN (Toowoomba West­ Leader of the Opposition) asked the WAITING TIME FOR DENTAL TREATMENT, TOOWOOMBA GENERAL HOSPITAL Minister for Development, Mines, Main Roads and Electricity- Mr. DUGGAN (Toowoomba West­ "What were the numbers of employees Leader of the Opposition) asked the Minister in each of the South-eastern, South­ for Health and Home Affairs- western, Central and Northern Divisions "In view of the published statements of of the Main Roads Department as at Mr. J. Seawright, Secretary of the Too­ June 30, 1957, and June 30, 1961?" woomba General Hospital, that the aver­ age waiting time for operative work, Hon. E. EVANS (Mirani) replied- including extractions, at the dental clinic was three months and that the waiting "Employment at- time for denture work was six to eight months, is he able to give an assurance I that everything possible is being done and June 30, 1957 June 30, 1961 will continue to be done to overcome this serious time lag at the Toowoomba South Eastern Division 1,519 1,520 clinic?" South~ Western Division :: 1,234 1,071 Central Division .. 812 916 Northern Division 876 982 Hon. H. W. NOBLE (Yeronga) replied- Depot, Workshops a,;;d Miscellaneous Employees "Everything possible has been, and will (all Divisions) .. 446 513 continue to be, done to overcome the waiting time for treatment not only at the Total 4,887 5,002 Toowoomba Dental Clinic, but at other Dental Clinics. As a result of the shortage By its very nature the work of the Main of Dentists, which has prevailed for some Roads Department does not involve the years, it has not been possible to comtem­ employment of large and ever-increasing plate any expansion of the Dental Clinic numbers of men. It is logical and services and efforts have been concentrated economic to utilise a large amount of on maintaining existing services." plant to mechanise road construction as much as possible and the greater the degree of mechanisation the fewer the men EVICTION OF TENANTS FROM STATE RENTAL employed and the more work there is HousEs performed. Thus expenditure rather than Mr. LLOYD (Kedron) asked the Treasurer the number of men employed is the and Minister for Housing- criterion of the amount of work carried "(1) How many tenants of State rental out under "The Main Roads Acts." It is houses in the metropolitan area were appropriate to point out that in addition evicted by the Housing Commission during to the men employed by the Department the twelve months ended (a) June 30, 1960, directly there are many men employed and (b) June 30, 1961?" by Councils on Main Roads work and many more employed on other than Main "(2) How many tenants facing eviction Roads work. This latter type of employ­ have been granted extensions of time under ment is assisted to an appreciable extent "The State Housing Acts Amendment Act by the Government's action in allocating of 1961'?" to Local Authorities, funds received by "(3) How many of these tenants who the State under the Commonwealth Aid have been granted extensions of time have Act and collected by the State under the subsequently been evicted?" 11 322 Questions [ASSEMBLY] Questions

"(4) How many tenants have been means of Relief Assistance, Free Rail evicted under this legislation without Passes, Free School Books and Requisites having extensions granted to them?" for children attending Primary Schools. Free Medical and Medicine Service, Free Hon. T. A. HILEY (Chatsworth) replied- Surgical Aids and Spectacles, Assistance "(1) (a) 21; (b) 15." to meet arrears of Rent, and in many "(2 to 4) There was no amendment other ways. The Honourable Member to the State Housing Act in 1960. If, as I may be assured that the position of these suspect, he is confused with 1961, the people is constantly under review." answer is-Nil, in respect of 'The State Housing Acts Amendment Act of 1961'. I TIME LOST BY Ex-SERVICEMEN IN SEEKING might add that no warrants of possession MEDICAL ATTENTION have yet been sought under the 1961 Act but the first batch of such proceedings are Mr. BROMLEY (Norman) asked the now imminent." Premier- "(1) Is it a fact that employees of Gov­ CLOSURE OF CAIRNCROSS DOCK ernment and semi-Governmental Depart­ ments lose wages when as a result of Mr. BROMLEY (Norman) asked the injuries or sickness caused through war Minister for Labour and Industry- service they attend the Repatriation Depart­ "(1) In view of the fact that Cairncross ment or doctors during working hours?" Dock will be closed until mid-November "(2) If so, when did this practice first for conversion to electrically-operated come into operation and by whose direc­ machinery, will this result in the dismissal tion?" or displacement of any employees during the closure period?" Hon. G. F. R. NICKLIN (Landsborough) "(2) If the closure will cause dismissals, replied- will he give consideration to finding alter­ (1 and 2) Obviously, I cannot give native employment for these displaced information upon this matter in respect of workers?" semi-Governmental Departments. Nor, indeed, without very extensive inquiries, Hon. K. J. MORRIS (Mt. Coot-tha) can I elicit information affecting particu­ replied- lar cases in a Governmental work-force "The Cairncross dock does not come of over 65,000 employees. I can give an under my administration." assurance, however, that, as far as can be ascertained from inquiries which have INCREASED FINANCIAL ASSISTANCE FOR been made subsequent to the asking of this UNEMPLOYED PERSONS question, generous consideration is given to officers and employees throughout the Mr. BROMLEY (Norman) asked the Crown Service in the cases of absences Premier- from duty by reason of injuries or sickness "(1) Did he read the statement in 'the directly attributable to war service. There Courier-Mail' of Friday, September 8, that is certainly no recently established prac­ the New South Wales State Government tice of the nature implied in the question has increased by fifty per centum the assist­ which has been asked. If a specific case ance it provides for unemployed people has actuated the Honourable Member in who have no money?" asking this question, I should be glad to "(2) If he did, is he in favour of such receive full particulars concerning it so a scheme being implemented in Queens­ that it could be investigated." land?" "(3) If he is in favour, will he and his EMPLOYMENT OF MARRIED WOMEN TEACHERS Government give consideration to the immediate implementation of such a Mr. AIKENS (Townsville South) asked scheme to assist similarly placed people the Minister for Education and Migration­ in Queensland?" "(!) How many married women teachers have been re-employed in a temporary Hon. G. F. R. NICKLIN (Landsborough) capacity so far this year?" replied- "(2) For what period must a teacher be "(1 to 3) My attention has been drawn absent from work through illness or other to the Press report referred to. I am cause before a relieving teacher is not aware of the extent of assistance supplied?" provided by the New South Wales State "(3) Will he consider establishing a Government to the people mentioned by 'pool' of married women and other tem­ the Honourable Member, so that it is not porary teachers in as many towns as possible to make a comparison between possible, so that members of the 'pool' the two States. Insofar as Queensland is could be directed to relieving duty as concerned, people in indigent circum­ soon as a permanent teacher was absent stances, who are not eligible for some for any reason and so avoid interruption form of benefit from the Commonwealth to pupils' education, and at times the Government, are assisted by the State sending home of pupils until the teacher Government in various ways, such as by returns to duty?" Questions (13 SEPTEMBER] Questions 323

Hon. J. C. A. PIZZEY (Isis) replied- Hon. E. EVANS (Mirani) replied- "(!) Two hundred and ten primary "(1) The Main Roads Department has school married women teachers have been not been approached on the matter." appointed to replace primary school "(2) See answer to Question (1)." teachers who resigned during the year." "(2) The period varies from school to school. The staffing scale currently used by TRANSFER OF BABINDA HOSPITAL TO this Department, in many cases, makes lNNISFAIL HOSPITALS BOARD provision for short periods of absence of Mr. ARMSTRONG (Mulgrave) asked the teachers from duty. On other occasions Minister for Health and Home Affairs- relief is afforded as early as possible by "(1) Has his attention been drawn to the Department or Regional Office." the article in 'The Cairns Post' in which "(3) This request has been submitted by the Cairns Hospitals Board states its the Queensland Teachers' Union and is willingness to cede the Babinda Hospital receiving consideration." to the Innisfail Hospitals Board? If so, what is his opinion of the value of this move?" LAND SURFACE LEVELS, HOME HILL AREA "(2) Is he in favour of granting a Mr. TUCKER (Townsville North) asked separate hospital board for Babinda?" the Minister for Public Lands and "(3) Would the Babinda Hospital be Irrigation- better off with its own board as regards "(!) Is it a fact that officers of the medical attention and especially with the Irrigation and Water Supply Commission appointment of a medical superintendent, conducting the investigation of water part-time or full-time, to the hospital?" resources in the Home Hill area in 1959- "(4) What are the possibilities of obtain­ 1960 found a difference in land surface ing a superintendent for the Babinda levels when compared with a previous Hospital?" contour survey conducted about 1922 or 1923?" Hon. H. W. NOBLE (Yeronga) replied- "(2) If so, by what amount and what "(!) Yes. My Department would be is considered to be the reason for such quite happy about such a move, and it a difference?" would appear to be of value in view of the closer proximity of Babinda to Innis­ Hon. A. R. FLETCHER (Cunningham) fail than to Cairns." replied- "(2) No." " Cl and 2) Topographic surveys in con­ nection with investigation of underground "(3) The Babinda Hospital would not water supplies in the Burdekin Delta have be better off with its own Board as regards not disclosed any significant difference in medical attention, as it could at times land surface levels as indicated by surveys when the position of Medical Superin­ of the Inkerman area carried out in 1922 or tendent at Babinda might be vacant, as thereabouts. As part of these investigations, at present, get help from the larger the Irrigation Commission has been Hospital Board area. It is not a question assembling all available topographic infor­ of a Hospital being able to appoint a mation obtained by various authorities. It Medical Superintendent, part time or full has been ascertained that the datum to time that is the problem. It is the avail­ which various topographic surveys have ability of Medical Officers for these been referred is different in some cases. positions. I might point out that Babinda In the case of surveys carried out in already has a doctor practising privately 1922-1923, this datum is some 10 feet in the town." lower than the more recently adopted "(4) My Director-General informs me standard state level datum in the area. This that it will be possible to appoint a does not indicate a difference in land Medical Fellowship-holder to the Babinda surface levels, but purely a difference in Hospital part time in the next calendar datum to which the various level surveys year to commence in January. With the have been referred." appointment of this Officer I have no doubt that the controversy which is occurring presently at Babinda will ROAD TO TELEVISION STATION SITE, MOUNT STUART, TOWNSVILLE disappear." Mr. TUCKER (Townsville North) asked the Minister for Development, Mines, Main DEPARTMENT OF NATIVE AFFAIRS Roads and Electricity- Mr. DONALD (Ipswich East) asked the "(!) Who is responsible for the construc­ Minister for Health and Home Affairs­ tion of the road to the television station "(1) For how many years has the Native site at Mount Stuart, Townsville?" Affairs Department been in existence?" "(2) Is it to be a private road or will "(2) What is the number of (a) Townsville citiziens have access to it?" employees of European extraction (whites) 324 Questions [ASSEMBLY] Questions

and (b) aboriginals or mixed bloods in person from Government sources £5 for clerical, managerial and skilled positions in every £1 spent on a white citizen in the the Department and its settlements?" community. Besides the needs of our "(3) What is the proportion of protected Settlements, there are increasing demands persons of eligible age attaining scholar­ being received from the Church Missions. ship pass standard in each of the last five I commend the Churches for their vigorous years?" attitude towards assimilation and all that is implied in this. Realising all this and "(4) What steps are being taken to knowing that increased finances are impera­ prevent the Department becoming a self­ tive-in proper perspective I realise also continuing paternalistic Department, run that there are other urgent needs to be largely by whites, rather than a Depart­ fulfilled not only in my Department but ment working towards the ultimate objec­ also in others. So much so, that I assert tive of its own extinction?" that the State alone, from its limited resources, cannot in all reason be expected Hon. H. W. NOBLE (Yeronga) replied- to provide the necessary funds to carry "(1 to 4) The Department of Native the work of assimilation forward to final Affairs can be said to have had its fulfilment. There can be no doubt that beginning in 1904, when a clerk was that the proper care of our coloured appointed to the Chief Protector of people is of national importance and is Aboriginals. The first Annual Report of of international significance. In this field the Chief Protector of Aboriginals to there should be co-operation between the mention the Sub-Department was that for National and State Governments. An 1910. It is estimated that the native approach along these lines has already been population of the State as at that date made to the Commonwealth Government, was in the vicinity of 15,000. These even to the extent of making Native figures must be an estimation only. Today Affairs a Federal responsibility or for there is a native population in Queensland Queensland to become an agent State of 47,448. Of these 21,170 are assimilated in this regard. With such a partnership, into the general community, completely and with my officers' great experience, I exempt from control. There are also feel certain that the future of our coloured 10,068 living on Reserves or in the general people could be assured. I would point community, but subject to some control. out that there are only two States with Of the total population of 47,448 there problems approximating ours-Western are 16,210 on Government Settlements, Australia and the Northern Territory. As Church Missions, and Torres Strait Islands. far as Western Australia is concerned, The number of employees in clerical, being an aided State, all their expenditure managerial, and skilled positions in the on Natives is recouped from the Common­ Department and its Settlements is­ wealth-the Northern Territory is a Whites, 198; Aboriginals or Mixed Bloods, direct Federal Government responsibility." 325. The number of pupils in Grade 8 for the last five years is-1957, 65; 1958, EXPORT OF BAUXITE FROM WEIPA FIELD 82; 1959, 97; 1960, 129; 1961, 142. The population figures quoted by me earlier Mr. MELLOY (Nudgee) asked the Minister prove conclusively that the policy of for Development, Mines, Main Roads and assimilation into the community is being Electricity- very successfully implemented. The popu­ "(1) In view of his reply to my question lation of the Torres Strait Islands is self­ on the mining of bauxite that the matter supporting, and if this 7,000 people is of mining of bauxite and its disposal is one deducted from the figures mentioned, we for the company concerned, subject to the find that of a total coloured population of agreement, has he had any application 47,448, there only 8,842 on Government from the company for the further export Settlements and Church Missions. This of bauxite under the provision of clause State now finds itself in the position of 18 of the agreement which provides for having achieved very considerable steps the prohibition of the removal of any towards assimilation of our Aboriginals but bauxite overseas except with consent of is approaching the stage where facilities the Governor in Council first had and of all kinds closely approximating those obtained?" of a "white" town must be provided in our Settlements and on Church Missions "(2) Does he not consider the mining to ensure total assimilation of them into and disposal of such a valuable State asset the community. Unless we continue to to be of prime concern to this Parliament progress towards the final goal there is and the people of Queensland?" grave danger that we will slip back. To Hon. E. EVANS (Mirani) replied- lose the benefit of the progress already made would be tragic for our Aboriginal "( I) No." people. This is realised most profoundly "(2) The mining and disposal for export by my departmental officers and myself, of bauxite alone would not be of much and the Churches too are very cognisant advantage to the State. I have no objec­ of this. I would point out that we are tion, however, to the export of limited spending in Queensland on each coloured tonnages of bauxite whilst the construction Questions [13 SEPTEMBER] Questions 325

of the alumina factory is proceeding, but Gravatt East area, but it will not be able I prefer to see the bauxite processed into to connect that area to the scheme until alumina at Weipa as such construction and additional funds are provided. I see processing will mean much greater employ­ little prospect of any further step before ment and settlement in the area. I under­ 1965. I repeat that I cannot allocate stand that the bauxite previously exported more than £300,000 a year without dis­ was for trial purposes and that costs to missing some of our day labour force, Comalco were extremely high in loading. and that is not the policy of the Govern­ I do not anticipate there will be a request ment. The only other alternative would for permission to export further tonnages be to delay some of the work at Stafford, of bauxite until dredging and harbour Rocklea, Inala, Acacia Ridge or Zillmere installations are much further advanced, by and substitute Mount Gravatt East on which time the alumina plant will be pro­ the agreed programme. I don't think ceeding. It may be necessary, however, to such a decision would be desirable if for allow export of limited tonnages of bauxite no other reason that I should hate to in order to ensure markets for alumina to commence a hatchet war in which the be later produced at Weipa in excess of the Honourable Gentleman was forced to flee requirements of Australia. In view of the from concerted attacks from his Parlia­ huge deposits of bauxite, exports of limited mentary colleagues from Nudgee, Salis­ tonnages for that purpose could not be bury and Kedron." objected to." COST OF REPLACEMENT OF RAILWAY FENCES SEWERAGE TREATMENT PLANT AT MT. GRAVATT Mr. BURROWS (Port Curtis) asked the Mr. NEWTON (Belmont) asked the Treas­ Minister for Transport- urer and Minister for Housing- "(1) Has he ever had the cost per mile taken out for the replacement of rail­ "Seeing that the Brisbane City Council way fencing throughout the State and, if has indicated that a local sewerage treat­ so, what is it?" ment plant will be installed in the Mount Gravatt portion of the Belmont Electorate, "(2) Can he or any of the Railway has any consideration been given by him engineers justify the extravagance of stay­ in conjunction with the Brisbane City ing both sides of strainer posts on straight Council to having the Mount Gravatt East lines of fencing as practised by fencing State rental Housing Commission project gangs in that Department?" connected to this scheme?" Hon. G. W. W. CHALK (Lockyer) Hon. T. A. HILEY (Chatsworth) replied- replied- "The Honourable Gentleman no doubt "(1) Costs have been obtained from time appreciates that Mount Gravatt East is to time for repairing of railway fences at various locations within the State but such one of a great number of Housing estates costs may vary according to the extent of which had been developed by the pre­ repair necessary, accessibility of the work, ceding Government without the slightest the area in which the work is required to thought for either drainage or sewerage. be undertaken and the type of country In my anxiety to correct the mistakes of involved. As examples, on the basis of the past and to get rid of these dreadful supply of materials by the Department bailer sumps and other objectionable tenders accepted in December, 1960, on devices, I entered into arrangements with the Central Railway ranged from £40 per Brisbane City Council whereby a five mile to £100 per mile whilst prices accepted year programme, 1960 to 1965, was in February, 1961, for fencing on the agreed upon for sewering Housing Com­ mission projects at Stafford, Rocklea, Western Line and South-Western Line in Inala, Acacia Ridge and Zillmere. This the South-Western District range from £100 programme totalled £1,530,110 and it to £110." included £1,292,110 special loan and "(2) It is considered a necessity to stay subsidy outside the Council's ordinary both sides of a strainer post to ensure that loan/subsidy allocations. Quite plainly, wires are kept taut in the adjacent straining I would have liked to be in a position sections in the event of wires in any to have cleared up not most, but all of sections becoming broken or cut." this inherited problem. However, the Honourable Gentleman must appreciate SEA:LING OF MARYBOROUGH-BOONOOROO that I cannot afford to stop all construc­ ROAD tion. He must surely know that we have maintained a remarkably steady day Mr. DAVIES (Maryborough) asked the labour force with none of the embarras­ Minister for Development, Mines, Main sing contractions which were a feature Roads and Electricity- of the previous administration. Brisbane "(!) Does his Department intend to City Council will design the Mount make any money available for work on Gravatt treatment plant so as to make the Maryborough-Boonooroo road during provision for the inclusion of the Mount this financial year?" 326 Companies Bill [ASSEMBLY] Companies Bill

"(2) If so, what is the amount and on unions and trade unionists. The Govern­ what particular work will it be ment acted quickly to implement the Indus­ expended?" trial Conciliation and Arbitration Bill. They "(3) If not, as Boonooroo is a tourist gave the court power to act speedily in centre, being Maryborough's nearest sea­ regard to trade unions and trade unionists; side resort and one of the State's most but they are very lethargic about dealing important fishing centres and as heavy with people who are taking the public down forestry traffic travels over several miles in a number of ways through companies. of it, will he give favourable considera­ The Minister for Labour and Industry made tion to making money available for the great play in introducing the Industrial Con­ sealing of this road?" ciliation and Arbitration Bill of the need to implement rank-and-file control in trade Hon. E. EVANS (Mirani) replied­ unions. I realise, of course, that there is "(1) No." no complete analogy between rank-and-file trade unionists and rank-and-file company "(2) See answer to Question (1)." shareholders. We realise that it is not "(3) It would not be practicable to make practicable to have the management of com­ money available this year. The priority panies or the executives of unions so ham­ rating of this road will be considered again stringed that in every tin-pot matter they when the programme for next financial have to confer with shareholders or rank­ year is being prepared." and-file unionists. But as far as asserting his democratic rights against an autocratic executive is concerned the rank-and-file COMPANIES BILL unionist is an absolute king compared with the ordinary rank-and-file shareholder of a INITIATION IN COMMITTEE-RESUMPTION OF public company. Despite all the political DEBATE ballyhoo about the insidious influence of (The Chairman of Committees, Mr. Taylor, Communists in the Trades and Labour Clayfield, in the chair.) Council and the power they are alleged to wield there, they certainly wield very little Debate resumed from 12 September (see power compared with the monopoly com­ p. 291) on Mr. Munro's motion- bines in the company world, such as Gen­ "That it is desirable that a Bill be eral Motors-Hoidens Ltd., in the way they introduced to consolidate and amend the thumbed their noses at the Commonwealth law relating to companies." Government on the subject of unemploy­ ment. Hon. members opposite justify their Mr. HANLON (Baroona) (11.32 a.m.): reluctance to introduce stricter provisions in Yesterday I referred to the alarm of mem­ this Bill on the ground that they do not want bers of the Opposition-! think it is cer­ to interfere too much with private enterprise. tainly reflected in public opinion-at the I ask them, "Where is private enterprise Government's decision to delay the imple­ today? What do we mean when we talk mentation of the Bill till July, 1962. The about private enterprise?" We are dealing Opposition finds it hard to follow the in this legislation with the joint-stock com­ Government's reasoning, because the Bill pany which has brought about a major was introduced originally in the closing revolution in our economic system over a stages of last year and a draft of the model period of years. No doubt it has been a Bill was widely circulated to people who basic and very effective method of channel­ ~he Government thought, would b~ ling savings into the mass combinations that mterested. Indeed, you will recall, Mr. are required to finance modern industrial Taylor, that the. draft was sent to many methods under the capitalistic system, with people although It was not freely available mass-production and the obvious benefits of to members of this Chamber. Quite a technical progress that have sprung from number of changes, mainly of a machinery mass-production. However, it is an illusion nature, have been made by State Ministers at to see today's joint-stock companies as pri­ successive conferences, and the people con­ vate enterprise. How can any hon. mem­ cerned should by now have had sufficient notice of them. ber opposite see something of private enter­ prise in great concerns like Consolidated _The. Goven;ment's actions in regard to Zinc, General Motors-Holden Ltd. or this Bill are m marked contrast with their B.H.P.? They are no closer to private indecent haste in introducing amendments enterprise than a field marshall is to an to the Industrial Conciliation and Arbitra­ Army private. Real private enterprise tion Act. Some of the ill-effects of which ceases once capital is so divorced from we warned them at that time are now being management as it is today. As the Leader exhibited in relation to bonus payments at of the Opposition pointed out, once upon Mount Isa Mines, and so on. From the a time capital, management and enterprise point of view of the rank-and-file share­ were supplied virtually by the one person, holders, there is some analogy between the the small partnership or the very small effect that this Bill will have on the company formed of persons who were all employers and private enterprise generally, actively concerned in the business in which and the effect that the Industrial Concilia­ they were engaged. But today we are get­ tion and Arbitration Bill had on trade ting away from private enterprise when Companies Bill [13 SEPTEMBER] Companies Bill 327 capital, management and enterprise are sup­ from the other States and Sir Garfield plied by completely different sources. The Barwick, are conferring on restrictive trade enterprise is supplied by the shareholders. practices, and so on, and something con­ Some of the capital is supplied by the share­ structive may be brought down on that later holders, but more and more capital is being on. But these things take so much time. supplied from another source-by debenture­ Even this Bill will not become operative holders and note-holders. The management is until next July. carried on by none of these people, but by As time goes on these things happen and directors and hired managers whose share­ people are exploited, but the Government holdings may be infinitesimal, particularly apparently are prepared to stand aside and in relation to the power they hold. How do little to stop it. Some companies with many times do we find that the original comparatively small direct investment are con­ entrepreneur or the original person who trolling the assets of shareholders, debenture provided the basic idea and the enterprise and note holders, amounting to many millions to start a company off, after he builds a or even billions of pounds. They are in a promising concern, is quickly shouldered position to control a company and very aside by the professional accountants and often they do not need a major interest financiers, and -shouldered aside with very in a company to control it. Some people little recompense for his part in the ven­ imagine that one must have 50.1 per cent. ture? As the Leader of the Opposition of shares in a company in order to control reminds me, that happened with Hartnetts it but you know, Mr. Taylor, that many and General Motors-Holden Ltd. giant-sized companies can be controlled by Mr. Hart: They have been happily a comparatively small percentage of share­ pushed aside. They get well paid for it. holding so long as the holders of such shares act in concert and are directed by one Mr. HANLON: Perhaps we could go particular interest. into that, too, but not today. No doubt For example, company A, may have private enterprise today, more and more, is becoming public enterprise uncontrolled by substantial interests in company B for whom the public. Ownership has been absolutely company C is an important source of supply. divorced from management so that the Company A may secure control of company shareholder has no interest in his fellow C, but its real investment in company C shareholders at all. He does not know may be insignificant compared with its whether they are good, bad, honest or investment in company B. So, with com­ fraudulent men. He has little interest or plete disregard for other shareholders in say in how the company is controlled or company C it supplies company B on most anything else; all he is interested in is his favourable terms, to the profit of company dividends. For all he knows his B, at the expense of company C. fellow shareholder could be an Al Capone. I do not want to imply it is happening He has no knowledge of the people in Brisbane, but if a situation should arise with whom he is engaged in business. in which interests dominating a morning He has little interest in how the company newspaper also control an evening paper­ is run or, unless his holding is greatly such as the position existing in Brisbane­ increased, no opportunity of exercising his it could possibly suit the bigger interests in interest in the matter. He has no chance the morning paper to control and deliber­ of deciding how the employees are treated ately deprecate advertising and other matter and has no chance of knowing just how in the evening paper in order to feed the trading is carried on. So, the hon. member bigger interest in the morning paper. for Gregory would refer to him as a "real absentee owner". I am not saying that it happens in Bris­ bane but it is one of the inherent dangers. Essential as a Stock Exchange is we also The shareholdings in a small company find the position developing there of vast that is being exploited could be virtually numbers of people becoming shareholders embezzled because it is being run in the in companies, people who have even less interests of those controlling it, usually a interest in such companies because they are company some steps removed from the other more or less speculatively holding shares for company. a matter of days or weeks. They have been described as similar to guests at a Mr. Hughes: If you cannot have a large hotel; they are there overnight and away number of small shareholders or a large they go. They have very little interest number of shares held by single share­ in the place at all. holders what are you to do in practice? Unfortunately, the more we find shares Mr. HANLON: I cannot follow the hon. being held and traded in by small share­ member at all; and I am not surprised at holders the less chance there is of any that. It is very difficult to give evidence to a effective rank-and-file control of a company Court of the matters I have mentioned. It is or protection of small shareholders against all very well to say things, but unless a clear those in a position to dominate the com­ knowledge of the company's affairs can pany. Thus pyramids of control are being be obtained no proof is possible. Even built up and I cannot see that this Bill auditors who are acknowledged and respected will be very effective in dealing with them. in the accountancy profession do not strictly I know the Minister, with Attorney-Generals mean what they say in the certificates they 328 Companies Bill [ASSEMBLY] Companies Bill put on the balance sheets of public com­ issued 10,000,000 5s. deferred shares carry­ panies, because they have to rely to a great ing voting rights and very little else. Wh~n extent on information given to them. They it comes to rank and file shareholders m have to rely on very limited powers for Carlton United Brewery, they can be issued the auditing of company balance sheets. So with "Z" shares that carry no voting rights, we find that minority shareholders are at but the big monopoly interest that was issued the mercy of controlling groups in general with 10,000,000 shares in H. C. Sleigh Ltd. activities, takeovers and other matters. got shares with voting rights. H. C. Sleigh Ltd. has never clearly disclosed who was We should like to see the Bill go much issued with the 10,000,000 shares. The further than it does in dealing with take­ vague description was that it was a nominee over bids and the other matters I have company for the benefit of overseas sup­ mentioned. pliers. Very little information was given I think ultimately we will find that the to the ordinary shareholders in H. C. Sleigh only way to protect effectively the interests Ltd. about the company that was given the of smaller shareholders, and the general tremendous voting rights attaching to public, particularly in large companies, 10,000,000 shares. When it comes to the is for Governments themselves to take granting of considerable voting rights to in these c0mpanies a shareholding suffi­ other than ordinary shareholders, no great cient to g;,e them a knowledge of what trouble is found in doing it. When it comes is going on in the companies. I am not to the ordinary rank-and-file shareholder, of suggesting tLe nationalisation of companies. course, he is disregarded. Those are all I think the trend of thought in the Labour matters that we could perhaps deal with movement throughout the world these days later on in the second reading stage of the is getting away from the idea of complete Bill when we get down to a more detailed nationalisation of companies and to the examination of it. I will leave any further scheme of Governments having sharehold­ elucidation of the Opposition's attitude to ings in companies sufficient to protect the this Bill to the hon. member for Port pu'.Jlic and the public interest. If the com­ Curtis and the hon. member for South p:mies do not do the right thing in the public Brisbane. interests, Governments will then have to take stronger measures to deal with them. Mr. BURROWS (Port Curtis), (11.51 a.m.). With a great blare of trumpets Pious platitudes about monopolies and so and many pious platitudes, the Minister on are poured out by the Liberal Party, introduced this Bill and explained how as to how companies will be dealt with if everybody had been consulted about the they act against the public interest. But requirements of our commercial laws to how are we to prevent companies from discipline certain unscrupulous persons, but acting against the public interest unless we I think the most remarkable feature about can get inside the companies? The only it is the very small part that has been played way to do that is to get inside and curb in its formation by the legislators of Queens­ these companies that are exercising the land who have been elected for the job. monopolistic powers referred to by the hon. This is another example of government by member for Mount Gravatt. delegation, or by outside opinion. I believe The matter of control of power being that the old saying, too many cooks can in management is reflected to some degree spoil the broth, that we were taught when in the growth of power of the Public Ser­ we were children, may be aptly applied to vice management as against management by this Bill. The Minister referred to so many the voters. It virtually boils down to much people, and the hon. member for Mount the same problem. We have to overcome Gravatt read out a list of persons who con­ this growing power in management compared tributed to its compilation. There have been with the people who should be having more so many fingers in the pie that nothing but say in what is going on. The Government fingers remain in it. can improve the Bill in a number of ways. We know that the representatives from other Economic and social problems have States, for example, New South Wales, changed considerably over the last 10 to 20 were anxious to include provisions much years and the necessity for a change in our stricter than those on which the Ministers company law can be denied by no-one. from all States reached agreement. When Companies have grown in stature and have the Bill comes into effect and deficiencies developed into combines that have become become apparent, we hope the other States as powerful as any State. Only on Friday will realise that stricter measures are last Mr. Menzies must have realised what required. a monster he and his Government have been I have mentioned non-voting shares. The nurturing when General Motors-Holden paid Carlton United Brewery Z shares were given off 8,000 employees, much to their embarrass­ a great deal of publicity when the Queens­ ment. Broken Hill Pty. Ltd., which has land Brewery was taken over some little about 42,000 employees, is practically as time ago. We are not very happy about rich as any State. Just as the holy Roman the "Z" type of share that carries no voting empire was neither holy nor Roman, nor an rights. On the other hand we have the empire, Broken Hill Pty. Ltd. is not a propri­ action taken by H. C. Sleigh Ltd., the etary, it is not broken, and it has but a petroleum dealer and shipping agent. It very remote interest in the town of Broken Companies Bill [13 SEPTEMBER] Companies Bill 329

Hill. The Minister is so interested in the but to a great extent these Acts were neutral­ Bill that he introduced that he is not even ised by the companies' bribing legislators into in the Chamber at present. not voting funds for the purpose of enforc­ Mr. Nicklin: He has gone to an interstate ing the anti-trust laws. However, last year conference on the Bill. Nemesis caught up with a few of them and a number of big directors had to serve gaol Mr. BURROWS: I hope he will come back sentences for their crimes against society. refreshed. The magazine "Time" reported the trials in brief and I commend its articles to hon. mem­ Mr. Nicklin: He is the last man to fall down on his duty. bers. I have here a few extracts from them. One, dated 17 February, 1961, reads- Mr. BURROWS: He is making every effort "In a tense and packed court last week to consult everybody on this Bill except the a drama took place that United States busi­ members of this Chamber. That has been ness will long remember to its shame. an unhappy feature, in my opinion, of the Referring to cases before Judge J. Cullen whole handling of the Bill. More or less, Gamey, Judge Gamey said they were a it has been on, and then off, and then on shocking indictment of a vast section of again, and off, for the last 18 months. Even our economy. now, as the hon. member for Baroona has "They were even more than that. They pointed out, it is not to become law until showed clearly that the executives of a July, 1962, which means an extension of time mighty industry had privately conspired to for the rogues, thieves, and scoundrels who rig prices to the detriment of the customers are breaking the intention of the present legis­ on a vast scale. lation. Up for sentencing were 29 electrical Another big company, Australian Consoli­ equipment companies and 44 Executives." dated Industries, had a cash balance of £3,000,000 in its last balance sheet. I can Some of those companies have branches see the Treasurer smiling but I am sure it in Queensland and are operating here. The is a smile of envy. They were castigated report continues- by the "Financial Review' or some other finan­ "They had pleaded guilty and a lawyer cial papers, who reminded them that there for one of the Executives denied that they was not much of a squeeze going on for were greedy, grasping cut-throats. them. I mention these matters only to illus­ "The first criminal was a prominent trate what a power these companies have churchman and the judge let him off with developed and what a danger they can 30 days' gaol. become. They become even bigger than governments themselves. "The lawyer for another pleaded that his client should not be placed behind The Minister has assured us that broadly bars with common criminals and the the Bill is the same as the one that we have judge replied with 30 days." already seen, the one that was circulated at considerable expense to the taxpayers and The disturbing thing about these crimes is then discarded. The old Bill was a fairly that, whilst they are punishable in America big document, comprising 386 clauses, but and, for that matter, in almost every other hon. members who had the time to read it country in the civilised world, under Aus­ will know that it gave immunity to proprietary tralian laws the directors would not have companies in many respects. Imagine the been liable for prosecution. That is a reaction of Broken Hill Pty. Ltd., which holds startling state of affairs, Mr. Taylor, and you itself out as being a proprietary company. will find, if you examine every line and Whether it will comply with the provisions every word of the 386 clauses in the Bill, that of the Bill or not I do not know because it very discreetly avoids putting any responsi­ I have not examined it in detail and I must bility on the Government to bring to these ,confess I would not have the legal know­ people the justice that they received to a ledge to be competent to say whether it will. certain extent through the prosecutions in But Broken Hill Pty. Ltd. holds itself out as the United States of America. Backward being a proprietary company. So does Swifts South American countries such as Brazil and Pty. Ltd., the big international meatworks Argentina have legislation similar to that combine. Vacuum Oil Pty. Ltd. is another under which these men were prosecuted in illustration of the abuse of the word "propri­ the United States, but Australia, as I said etary" and how it is used not only for income previously, is just a sanctuary for these tax purposes but also for the purpose of rogues and crooks, who are able to per­ petrate their crimes here and be treated as circumventing the law relating to companies respectable citizens. and the duties they have to the public. These big combines can and do play havoc with As far back as 24 June, 1944, "The the economy and social structure of the Economist" suggested a law to make it States. Many years ago the Government of definitely illegal for associations or agree­ the United States of America realised the ments to fix minimum prices or maximum menace they could become and introduced quotas of output without specific permission legislation to limit their scope. It was known from some public authority. This is similar as the Sherman Act. In 1913 President to the provision in the Sherman Act under Wilson tightened up a little more on them which these unscrupulous directors were 330 Companies Bill [ASSEMBLY] Companies Bill prosecuted in America. As I said, there is in the public interest. When an economist nothing in any Australian Act that could makes a mistake, people forget that he did bring unscrupulous people such as these to not have access to all the information so justice. That is perhaps the most serious necessary to enable him to arrive at a correct omission from this Bill and every other conclusion. It is like asking him to perform piece of company legislation in Australia a task with his hands tied behind his back. today. Mr. Hart: You will agree that the Bill The Bill makes a weak attempt to over­ makes provision for much more information. come a serious fault in our existing legis­ lation by making provision for a more com­ Mr. BURROWS: Instead of going 100 plete and fuller disclosure of the affairs of a yards it goes a few inches in that direction. public company. This question has been No-one knows that better than the hon. agitating the minds of honest people and member for Mt. Gravatt. legislators for many years, and as far back Diehards and vested interests will claim the as 1860 an attempt was made to introduce a right to privacy on the part of company similar provision in the House of Commons executives, but let them remember that the in England. At present only a privileged few executives are playing with public funds. It know the real financial position of most pub­ would be only in rare cases that the directors lic companies, and those who are opposed would own much more than 30 or 40 per to the principle of a more complete dis­ cent of the capital of a public company, so closure claim that it would give competitors why should they have a monopoly of all an advantage. Who can deny that this would vital information covering the company's be in the public interest? Efficiency would affairs? The directors are the agents of the be improved and shareholders, who in reality shareholders. Very often they act as dicta­ are the owners of the undertaking, would be tors and bosses while they are playing with able to assess the value of their investment. other people's money trying to make good At present the only means that the average fellows of themselves, enriching themselves shareholder has of assessing that value is in the process as a rule. by inspired movements on the Stock Exchange. He has to keep himself in daily It must be fully appreciated that the lia­ touch with reports in the Press to know what bility of all public companies is limited to his shares are worth. Prospective employees the amount uncalled on their share capital. also have a right to be able to assess the This is an enormous concession or privilege, stability of the company by which they are and a privilege and a right must be matched employed. Only the other day I was asked with responsibility. The unequal matching of to give a lad a reference for a job in a big rights as against responsibilities in respect of company. He required four references from company law is one of the problems facing ordinary citizens and one from a clergyman. everybody, and one of the responsibilities He had to state his religion and family that Parliament should face up to. That is background when he applied for this job as the point I wish to make. They want it all an office boy. Had the boy's parents made their way; they will not concede an inch to one inquiry about the honesty and integrity give any explanation to the public. They want of the company he would have had Buckley's to play with public money and they do not chance of getting a job. There is no way in want to tell the public what they are doing. the world that he could inquire even into Most of the financial tragedies of the past the stability of the company. I realise that year would have been averted if fuller and by going to the Registrar of Companies and more complete knowledge of the companies' paying a fee of Is. he could have a look affairs had been made available to the pub­ at a balance sheet, but I defy any man to lic. I should like hon. members opposite interpret the company's stability from its to deny that. It should be the aim of every balance sheet. honest Government to protect the investor, Mr. Hughes: It would be a ludicrous the creditor and general public in framing the situation for managers and directors to ask laws of any country, and to restrict the you for a reference. the activities of speculators as far as it is humanly possible to do so. Mr. BURROWS: I should not like to give the hon. member a reference. He may not My submission is that the Government know much about common law but I under­ have avoided that principle, and I regret that stand he knows a bit about partnerships. The the time allowed me under the Standing right to make inquiries should not be denied Orders will prevent my going into many to either side, and that is the point I am details to prove it. It is true that I have trying to make. not had access to the proposed Bill but the Minister has stated that it is substantially The modern urge to merge would be more the same as the one he introduced last difficult if shareholders had a means of December, which, unfortunately for the tax­ knowing approximately, the real value of payer, was printed and circulated at great their shares. Creditors would be given more expense and then suffocated before maturing protection, and economists and statisticians into a fully-fledged Act. would have better opportunities to advise governments and others on vital matters of ·It will be remembered that the defunct public interest and concern, such as produc­ Bill was presented to this House in a rather tion volumes and costs. All these things are unusual manner, as a gentleman's agreement Companies Bill (13 SEPTEMBER] Companies Bill 331 had been reached under which debate would Mr. AIKENS (Townsvi!le South) be limited until all hon. members had had (12.16 p.m.): Prior to the passage of the first an opportunity to read it. of the seemingly interminable company Bills On resumption of the House after the -1 think it passed the first reading stage­ Christmas vacation the Minister withdrew it it was published in book form. We did not although he had promised to have it enacted get a copy, although the A.L.P. members by last July. As the hon. member for got a copy, and so did the Q.L.P. members, Baroona pointed out, he has aggravated the and the beloved brethren of the Govern­ problem by stating that the new Bill will not ment outside. be operative until July, 1962. There is no Mr. Walsh: Everybody got a copy of it. excuse for the procrastination. There are many vital reasons-prosecutions for fraud Mr. AIKENS: Yes, but those I have recently or presently before the courts-to referred to had about two months' start remind the Government of the urgency for on me. tightening up the laws governing these I went through the Bill in the time available matters. The delay and procrastination by to me and to the limit of my ability, and I the Government should condemn them. conferred with various people who should Prima facie they are as guilty as the com­ know something about company law to find panies concerned; they are accessories to out whether it was a good law or a bad law. every fraud committed or to be committed The concensus was that it was doing some­ between July, 1961, and July, 1962, by their thing towards removing the evils that existed unnecessary postponement of the introduction in company law and administration, but of the law. that it did not go nearly far enough. I The delay or deferment can only be inter­ thought that if it went some way towards preted as a convenient opportunity for the cleaning up the shocking mess and very miscreants to further exploit the public and putrid odour that surrounded the operation make good their escape, or to become respec­ of public companies in Queensland for table citizens living on their ill-gotten gains. many years it was to that extent a good The Government are being influenced by thing and would merit my support. My outsiders who are only concerned with self­ attitude changed remarkably yesterday, how­ interest. ever, when I heard the hon. member for Mt. My attention was drawn to a sad case of Gravatt read out a list of names of men hardship only a few weeks ago that would who had been associated with some com­ never have occurred if the Government had mittee or other to draw up a rough draft not been so dilatory with this legislation. In of the present Bill and advise the Govern­ this particular case the hire-purchase ment on it. As I heard the list of names fraternity virtually took the hat around to I decided it would be wise for me to regard help a badly stung victim. The Minister is too the legislation with very grave suspicion, complacent about these crimes and is too because not one of the people mentioned by ready to blame the victims for not being able the hon. member for Mt. Gravatt has any to see or anticipate the fraud in many of sympathy at all or any community of these conspiracies, but not many people have interest with the people I represent, the been gifted as he has been in these matters useful people of the State. I shall go or have had the opportunity to get the train­ through the Bill after it passes the first ing necessary to see the dishonest motives in reading stage with the traditional microscope these plausible frauds. Every attempt has or magnifying glass in order to find the been made to hide and cover up the weak­ catch. nesses of the Bill. The hon. member for We know, of course, that there have Mt. Gravatt quoted the law or rule attaching always been two laws in this country and to the words "ultra vires" which hon. mem­ in all other countries, a law to punish the bers should know mean "beyond the powers illegal thief and a law to protect the legal of". For every case of ultra vires there are thief. When the Companies Act was first thousands of straight-out fraud or some introduced in England many years ago, other act of dishonesty by companies. He probably ante-dating the matter mentioned quoted the Ashbury Carriage case, which is yesterday by the hon. member for Mt. elementary. It occurred in 1875. He had Gravatt, it evoked a small poem that was to go right back that far to get a case for published throughout England and is still disguising the serious omissions from this in print. I had the parliamentarian librarian legislation. look it up for me. It reads- Mr. Dewar: Do you remember it? "The law doth punish man or woman That steals the goose from off the Mr. BURROWS: It is the first thing you common, are taught in bookkeeping. It is the first thing you learn to recite. The hon. member for But lets the greater felon loose, Mt. Gravatt had to bring forward an anti­ That steals the common from the goose." quated, ancient theory such as that in order That is exactly what company law has done to disguise the serious omissions from the in the past, and I am afraid the Bill now legislation. I regret I have not more time before us is going to do the same thing. to discuss the measure. I am thankful that It is going to protect those who legally we will have another opportunity. rob the people. 332 Companies Bill [ASSEMBLY] Companies Bill

Mr. Walsh: Have you been reading that or also financially interested in, so that the article of John Higgins, "The Untouchables:"? directors of the company used a great deal of that money to lend to themselves. How­ Mr. AIKENS: Who is he? If he is a ever, in the main, they lent it to a second-hand relation or has any political association with car sales company, and a chap who opened the hon. member for Bundaberg, I would up in Rising Sun as a hardware merchant, regard his writings too with the greatest sus­ furniture merchant, and so on, and they lent picion. I should say that the hon. member it to a company down in the Burdekin area, for Baroona hit the nail on the head the and to another company. In the main, the other day when he said, in effect, that it money was lent to four or five traders. A would be useless for this Parliament to pass couple of those traders were quite honest, the Companies Bill if there was not to be a reputable people, but I will deal first of all tight ministerial supervision of it, and if with one man to whom they lent £23,000 the Minister did not see that the provisions of the workers' and pensioners' money. This were enforced. In the past the Minister has chap was running a big hardware store and fallen down grievously on the job of furniture emporium in Rising Sun, and in administering the Companies Act on the order to boost his sales, to receive the dis­ Statute Book of Queensland today. count from this hire-purchase company l::re Just as the hon. member for Mt. Gravatt would sell furniture to fictitious people. I gave a rather weird description of something understand that he sold me a suite of furni­ that occurred in 1810, or 1642, which you, ture for £120, that I knew nothing about. Mr. Taylor, I have no doubt, ruled was He gave my name, and of course forged my quite in order, because it was analogous to signature. He did the same thing, I under­ the present legislation, I am going to tell hon. stand, with Talbot Heatley and Guy Ryan members of something that occurred con­ and many other prominent people in Towns­ cerning the operations of the Companies Act ville. He allegedly sold this furniture and in , u .,.nsV111e m recent months. Some hardware to us, and various other people. time ago a group of people in Townsville got together-the leader of the group being Mr. Bennett interjected. named Parker-and they formed a money­ lending company known as the Townsville Mr. AIKENS: I ask the hon. member to Acceptance Company. I think that is the listen to this. This is serious. name. If it is not the actual name, I can Of course, he gave the names of genuine look it up. They decided to solicit money purchasers on time payment -into the Towns­ from various people in the area and to lend ville Acceptance Company, and he also gave that money to various traders using the hire­ the names of these fictitious buyers, and their purchase system of trading. fictitious addresses, into the Townsville Mr. Bennett: Did they get you in? Acceptance Company, and of course, received the discount. Then the Townsville Accept­ Mr. AIKENS: I have no money. I am ance Company would post the usual hire­ not a barrister and consequently I have not purchase papers out to the genuine buyers any money to invest. If I had been a mem­ and out to the fictitious buyers and, by an ber of the legal fraternity, of course I could amazing set of circumstances, the genuine rob it off some poor unfortunate person and buyers received their mail and signed the claim it as my own and then lend it out, or documents and went in to the Townsville invest it in some company, but being a hard­ Acceptance Company's office and completed working member of Parliament I have no the documents and acknowledged their money to invest. indebtedness. Remember, this went on over The people who subscribed the money to a period of months; it was not just one iso­ this company were workers, in the main, and lated instance. But the letters addressed by many of them subscribed their life savings. the Townsville Acceptance Company to the fictitious names and addresses and posted at Mr. Tucker: And pensioners. the Townsville Post Office never reached the Mr. AIKENS: They did as the hon. mem­ people concerned. Every one of those letters ber for Townsville North said. They went allegedly addressed by the Townsville Accept­ round to what is known as the working-class ance Company to a fictitious name or a section of Townsville and got them to sub­ fictitious address got back into the possession scribe every penny they had, in many cases. of Platen, the merchant who was working I know of a railway man who had saved, the racket. by diligence and ..frugality, £3,500 and he put Mr. Walsh: I think I read about that in it all into this Townsville Acceptance Com­ "Truth." pany. There was also a waterside worker who had £3,500, and there were struggling Mr. AIKENS: Of course, "Truth" pub­ little cane farmers and pensioners. Of course, lished the story long after we in Townsville once they got all that money in they decided knew all about it, long after we had all seen to lend it out to various traders in Towns­ the hardship that this scoundrel had brought ville. The most amazing thing about it is about. that they lent out a great deal of this money to companies of which the directors of Towns­ Mr. Bennett: What did you do to stop ville Acceptance Company were also directors, all this? Companies Bill [13 SEPTEMBER] Companies Bill 333

Mr. AIKENS: I will tell the hon. mem­ nothing that we can investigate." ber what I did. Let him not be impatient, The Postmaster-General's Department has for goodness' sake. Naturally Platen drawn a complete veil of silence and secrecy reached the stage when he realised he was over the proceedings. The efforts of every­ in so deep that he could not possibly get body concerned, including the unfortunate out and one night he shot himself, com­ people who were robbed, to get some state­ mitted suicide. When the police went to ment from the Postmaster-General's Depart­ inquire into the suicide they found in the ment about what it had done to investigate room in which the dead body was lying the whole putrid set of circumstances have more of these letters that had allegedly been been to no avail. The department has posted by the Townsville Acceptance Com­ built a deep well of secrecy round the pro­ pany and lodged in the post office. They ceedings and sunk all the details in it, just found them in Platen's room, in his pos­ as it did in regard to the use of faked session. It is amazing that not one genuine number plates on some of its cars. So letter was found in Platen's possession. Only the people are left now with a company that those that he had given in with fictitious has gone into liquidation, and they know names and fictitious addresses found their that they will not get any of their money way back to him. back because, since the suicide of Platen, There was a suggestion, of course, put the second-hand car-selling company has also forward rather tenuously I thought, that gone into liquidation and that money has Platen had been working with an employee also gone down the drain. in the post office to get hold of the letters The most amazing thing about it is that and hand them back to him. How on earth the man Parker, who was the guiding light could one employee in the post office know in the Townsville Acceptance Company, is when the Townsville Acceptance Company still going on as strongly as ever, blooming was going to post its mail? How would _he like a rose in spring. I found out the other know which were the letters to genume day that he is secretary of the Charters buyers and which were the letters to fictitious Towers Finance Company. I have told hon. buyers? For instance, if a letter was posted members on more than one occasion how to me, Mr. T. Aikens, 27 Soule Street, the Charters Towers Finance Company Hermit Park, Townsvllle, how would the came into being. It was originally the postal employee know that that was a fictitious Charters Towers Electric Light Company, sale? And if another letter was posted, say, and it sold all its holding to the Townsville to Mr. P. Tucker, Chubb Street, Belgian Regional Electricity Board. On 1 January, Gardens how would he know whether that 1956, the Townsville Regional Electricity was a fictitious sale or a genuine sale? So Board decided to pay every shareholder in it is obvious that the racket could not have the Charters Towers Electric Light Com­ been worked by collusion with someone in pany 25s. for each £1 share the shareholder the post office. I repeat that these letters held; but the directors of the company said were posted at various times over a period -and this was upheld by the Minister for of months. How would the postal employee Justice-"That money does not belong to know when the Townsville Acceptance Com­ the shareholders. It belongs to the com­ pany was going to post its mail? pany." The directors of the company, Mr. Walsh: If the letters were posted in at a meeting of which I can find no record. bulk, yes. decided not to give that 25s. a share to every shareholder in the Charters Towers Mr. AIKENS: They may not have been Electric Light Co. but to hang onto it them­ posted in bulk. He might have got two or selves and transform the company into the three in one day posted in the ordinary way. Charters Towers Finance Cci. The same Anyone who knows anything about the post­ man, Parker, is now secretary of that com­ ing of mail and the working of post offices pany, which is lending money for hire pur­ -and we all do-would realise the diffi­ chase in the same way as the Townsville culties. For instance, how would the Towns­ Acceptance Co. did. The Charters Towers ville Acceptance Company or Platen know Finance Co. is now centered in Townsville, that his man was on duty when the mail and Parker, who was the founder of the was being posted? He could have been Townsville Acceptance Co., is secretary of off sick. He could have been injured on his way to work. Anything could have it. The Minister thinks that this is O.K. happened. So I think any man would and everything is all right. The majority realise that this whole rotten, putrid racket of the shareholders in the Charters Towers could not have been worked by collusion Electric Light Co., which is now the with somebody in the post office. Charters Towers Finance Co., were small shareholders, but the Minister says Apparently there was no legal way the that there is no need for any Minister for Justice could inquire into the further investigation. I have raised the racket. The police, of course, said, "We question a dozen times, but the Minister have inquired into Platen's suicide. We brushes me aside with the oleaginous remark can find no suspicious circumstances sur­ that everything in the garden is lovely. rounding the actual suicide. There is no doubt that Platen shot himself because he I thought that one way in which we could not only shot himself but he left a note get an exposure of the whole operations of explaining the reason why he shot himself. the Townsville Acceptance Co. was to hold So as far as we are concerned there is an inquest into the death of Platen, who 334 Companies Bill [ASSEMBLY] Companies Bill

surely committed suicide. So I wrote to The CHAIRMAN: Order! I cannot the Minister for Justice and asked him to allow the hon. member to suggest impro­ hold an inquest into Platen's death. If priety on the part of the Minister. I think Platen suicided because of the way in which the hon. member is exceeding the limit to he had been involved with the Townsville which he is allowed to go in making his Acceptance Co.-that was the reason for statement. committing suicide that he gave in the note he left-surely the people of Queensland Mr. AIKENS: Thank you, Mr. Taylor. I should know of the whole of the operations accept your rebuke if it was so intended. It of that company. They should know why sometimes does a member good to be made Platen became so involved and why his to realise just what he can say and what involvement with the Townsville Accept­ he cannot say. With that in mind let me ance Co. led to his suicide. I thought that say that many of the actions of the Minister was a perfectly reasonable request to make, for Justice have amazed me. Some of them but, of course, knowing the Minister for have been beyond my comprehension but I Justice, I did not think it would get very would say that no action of the Minister for far. In fact it did not get very far, because Justice has amazed me more, or is more the Minister again brushed me off and said, beyond my comprehension, than his refusal "There is no need to hold an inquest into to hold an inquest into the death of Alex. J. the death of Platen-no need whatever­ Platen. If that inquest were held the whole because the Coroner is quite satisfied that of the ramifications of the Townsville there are no suspicious circumstances in Acceptance Co. and the whole of Platen's regard to Platen's suicide." In other words involvement in it could be publicly exposed. the Minister for Justice is quite satisfied Surely there is no-one here who will suggest with tlle fact that Platen shot himself. that that should not be publicly exposed. If Nothing else concerns the Minister for this sort of thing is going to go on under Justice. He went on to say that if the the new Companies Act, as it went on under people who were robbed as a result of the present Companies Act, as the hon. mem­ Platen's actions had any evidence of any ber for Baroona says, we are wasting our wrongdoing on the part of any member time considering the Bill. If the Minister of the Townsville Acceptance Co. they for Justice is not going to enforce the pro­ 'should take that evidence along to the visions of the Bill before the Committee as police. he has not enforced the provisions of the Mr. Walsh: Do you think the Minister Companies Act already on the statute book, is covering something up? then I agree with the hon. member for Baroona that we are wasting our time in dis­ Mr. AIKENS: I believe that the Minister cussing it. is deliberately covering something up. I cannot come to any other conclusion. There I know it is very difficult to have a man is the case of a man who left a note fm: connected with companies worry very much the police saying that he was so involved about the people who invest their money in financially that he had to commit suicide­ companies, if he is a director. It is very it was the only way out. The only way we difficult to get a shearer interested in the could get a public exposure of this whole sheep. That is the case with all these rotten, putrid, shrieking, stinking business people who are interested in the formation of was to hold an inquest, but the Minister companies, in the operation of companies and refused to hold an inquest. In effect in his in getting the money of the little people into letter to me he said, "You hold inquests only the coffers of those companies so that they where there is some doubt about whether or can do what they like with it. They can not the fellow committed suicide." Although lend it out at any interest they like while the people of Townsville-in fact the people they sit back. They can lend some of the of Queensland-want to know why Platen money to themselves, as was done by the first of all was allowed to become so deeply Townsville Acceptance Co. They can draw involved with the Townsville Acceptance Co., their directors' fees and dividends; they can the Minister refused. have the good old time that company direc­ tors and company manipulators have had Mr. Walsh: The charges you make are over the years. Until the whole of the very serious ones. ramifications of the Alex J. Platen suicide Mr. AIKENS: Of course they are serious. are made public, until the people of Towns­ I intend them to be serious. If the hon. ville, North Queensland and Queensland member for Bundaberg, whose vocabulary generally are given an opportunity to see perhaps is more extensive than mine, can sug­ clearly how this fraud was worked­ gest how I can make my charges more because it was a fraud that was worked and serious I shall be very happy to do so. If it affected scores and scores of decent, I thought for a moment that the Minister honest working-class people's life savings­ for Justice had been a shareholder or had then everything we do here will be farcical been financially involved with the Townsville and a travesty of justice. Acceptance Co. I would say it, but I have Mr. Bromley: Do you think this Bill will no proof of that, although certain things stop that? indicate that he might have been because of his great desire to protect the Townsville Mr. AIKENS: As the hon. member for Acceptance Co. from any public inquiry-- Baroona said the other day, all Acts of Companies Bill [13 SEPTEMBER] Companies Bill 335

Parliament passed in this House are worthless Townsville South had charged the Minister and no more than scraps of paper unless with corruption he would have been ~ealt we have a Minister strong enough and honest with by me. In his remarks he skirted enough to implement them. round an accusation of impropriety but when his attention was drawn to it, he ceased. I (Time expired.) will not allow the hon. member for South Mr. BENNETT (South Brisb_ane) (12.41 Brisbane to say that another hon. member p.m.): I too share the opimon of my accused the Minister for Justice of cor­ colleagues, the hon. !TI~mbers _f?r Baroona ruption. and Port Curtis, that It IS surpnsmg that the Mr. BENNETT: I understood the hon. introduction of this Bill has been de_layed member for Townsville South to say that the for so long. In the main it is . a ~es1rable Minister for Justice had knowledge of dis­ improvement by way of consolidatiOn and honest practices in relation to the Townsville amendment of the existing company law but Acceptance Corporation and that he why it should be delayed for 12 months I deliberately withheld any investigation into fail to understand. them. The Bill does nothing beyond recognising and acknowledging the fact that Queensland, The CHAIRMAN: Order! The hon. during the last few years, has been a haven member for South Brisbane may put his for share sharks and dishonest rogues from own interpretation on the remarks of the the South who come up with their many hon. member for Townsville South. I have convictions. They are not willing to engage given my interpretation of them. in gainful employment, nor have they the capacity to indulge in any o_ther form of Mr. BENNETT: The hon. member for activity but they have the cunnm!_\ and knov:­ Townsville South made another claim, that how to use Queensland compames to their the Minister had told him that there was advantage by defrauding unsusl?ecting mem­ no legal way in which he, the Minister, could bers of the Queensland commumty. inquire into the racket that was being operated by the company mentioned. It is The delay in introducing the Bill ha~ p~r­ hard to believe that the Minister would mitted these people to consolidate their _Ill­ say that, because it is not true in law or in gotten gains. It is n_ow e_ven more amazmg fact. An investigation may be made in every to be informed that m spite of the fact that conceivable way, bearing in mind, of course, the machinery for the implementation of the that certain protection may be given under Act is ready, it is not to be implemen~ed current company law for dishonest practices, until July of next year, thereby enablmg but there is absolutely no excuse or jutifica­ them further to consolidate the shares that tion for saying that an investigation or inquiry they have deliberately stol~n in a dis~onest could not be held. and deceptive manner that m normal Circum­ stances would have brought them under the Mr. Walsh: It could be held under the heavy penalties of the Queensland Criminal Official Inquiries Act. Code. Mr. BENNETT: Under the Official Mr. Hanlon: They are ringing the bell Inquiries Act, the Criminal Code, and so to warn the sharks instead of the bathers. on. I should say there are reasons, perhaps valid but inexcusable, why inquiries are not Mr. BENNETT: Of course, and by July held from time to time into company opera­ of next year the people who have delibera­ tions. We are informed that frequently the tely taken advantage of the weaknesses in Government become aware of these dis­ our existing legislation, these the magnates of honest practices only when information Queensland, will be beyond the law, so com­ about them appears in the Press. fortable financially that they will not need to engage in further dishonest practices. I am certainly in accord with the sug­ They will then have the business community gestion of the hon. member for Baroona of Queensland at their mercy. that the staff of the company's office in the It is a shocking indictment of the Minister Registry should be increased considerably and his Government that they can stand by and improved. When I use the word and allow such things to happen. "improved" I mean improved numerically and in expert and skilled knowledge of the I was inclined to disagree to a large practice of company law. I am of the con­ extent with the allegations of the hon. mem­ viction that there are not many, if any, ber for Townsville South concerning the skilled investigators in the employ of the Minister, and his intentions regarding the Government who would be qualified to Townsville Acceptance Corporation, but it properly investigate any malpractice under has been clearly alleged by the hon. member, company law. It is a field that requires quite frankly that the Minister for Justice special skill, and certainly an expert know­ has been guilty of corruption and is ledge of company law and a good working deliberately withholding a proper investi­ knowledge of share markets. Until we have gation-- investigators qualified in such matters the The CHAIRMAN: Order! The chair department will be unable to investigate the listens very carefully to the remarks of every serious, and no doubt well-founded, allega­ hon. member. If the hon. member for tions that are made from time to time. 336 Companies Bill [ASSEMBLY] Companies Bill

I do not subscribe for a moment to the because of a failure to insist on the pro­ suggestion that the malpractices connected vision that there should be no tampering with with Platen and others and the Townsville the funds until the minimum subscription Acceptance Corporation should be investi­ has been obtained. There are many instances, gated under the Coroners Act, because the no doubt, where that has happened. I instance coroner has no jurisdiction or authority to one case of some importance, the National inquire into the practices of a company, Petroleum Company, sometimes known as following the death of one of its directors. Mr. Gair's Dim Sim Petrol Company, in He merely has to inquire into and give a which one of the directors, to obtain the decision as to the cause of death. It is minimum amount of share subscription, put therefore impossible and impracticable to in a cheque himself drawn on the Bank of conduct a company inquiry under the California, which entitled him, under the Coroners Act. present company law in Queensland, to As these grave allegations have now been draw on the money of the various Queens­ made, the Minister is justified-in fact it is land subscribers throughout the State. Having almost his bounden duty-in instituting a used their money largely to his own advan­ proper inquiry under the Official Inquiries tage, it was then discovered that his own Act. The Government are always able to cheque was worthless. That practice is to be get Mr. Jack Aboud to look after their preserved for another 12 months. There should interests at such inquiries, even if company be a severe curtailment of the commission law is perhaps a field in which Mr. Aboud allowed to people who hawk shares for various does not specialise. companies, and this provision should also apply to directors and other paid procurers In the past directors of companies have of the company. In many other spheres the been able to escape liability for giving rate of commission is fixed. It is fixed for wrong information to the public in pros­ Auctioneers, Real Estate Agents, Debt Col­ pectuses by claiming that they had no know­ lectors and Motor Dealers at approximately ledge of the misrepresentations made to the 5 per cent. It should not be very difficult, in public in their prospectuses. This method ordinary circumstances, to dispose of shares of escape is to be available to them for in a reasonably substantial company with another 15 or 16 months. They paint a good prospects. Yet there is a suggestion glowing picture and even print photographs, that the share sharks-and there are many­ in certain instances, informing the public should be allowed 10 per cent. commission, that the company they intend to float, or which means that for every £10,000 worth which is already in existence, is about to of shares they dispose of they personally embark on a big scheme of development. make a profit of £1,000. That seems to be But they do not publish prospectuses. They extraordinarily out of proportion to other gain the confidence of the public, they commissions and fees allowed for work under induce the people to subscribe their money, the Companies Act. without being responsible in any way for the information that they supply. If there Furthermore, there should be a severe is any litigation following the failure of the curtailment of the period within which an company they merely say in their defence option may be taken up to purchase unissued that they had no knowledge of the repre­ shares. It has been suggested that the sentations that were made, and so they period should be extended, or that it should escape liability. The Bill is necessary to be as long as five years. Obviously that compel all directors of a company to sign would work injustice in two ways. First the prospectus, so that if the allegations of all, if dishonest directors, or those who contained therein are not true each director are taking advantage of the ordinary share­ is personally liable. If there is any reference holders, are allowed to wait five years to to proposed directors of a company, in order see whether the company will be a pro­ to win the confidence of the community, gressive or a prosperous one, it is unfair they too should also be required to sign the to the shareholders whose money they are prospectus, otherwise their names should using in the meantime. Moreover, they not be used. The delay and procrastination can lie by for that period of five years, when for the next 12 months will enable these the moneys of the ordinary shareholders are questionable directors who are not con­ being used for the development of the com­ cerned about truth, whose only aim is to pany, and then at the end of five years, make money at the expense of unsuspecting when the directors see which way the cat people who do not doubt their honesty, is jumping, they are still entitled to take to issue many prospectuses to fortify up the unissued shares. At the outside, their financial position. There should not be a period of two years is more than adequate. an allocation of shares, or any expenditure Again, the existing practice of banks of share money until the minimum sub­ indulging in company activities should be scription provided in the prospectus has immediately corrected. Company law and been made. Further, the minimum sub­ banking law should be such as to make scription advertised in the prospectus should banking a matter for banks and company be registered with the Registrar of Com­ law a matter for the Registrar of Com­ panies before the prospectus is issued. There panies. Inequities, malpractice and wrong­ is also the sorry spectacle of shareholders doing always creep in when banks begin being deceived, and deprived of their money to take more than their ordinary interest Questions [14 SEPTEMBER] Questions 337 in the activities of shares in companies, as they are doing in Queensland. I refer, for instance, to the A.N.Z. holdings. They hold many undisclosed shares on the share market for investment in big companies. Banks should not be given any privileges at all in these activities. Certainly they should not be given any special preference in relation to the activities of the ordinary taxpayer in Queensland. All sorts of inequities can creep in because existing com­ pany and other law allows the banks to throttle the share market in the State and to carry on in a privileged fashion without disclosing the real interest they have in companies. No doubt Mr. Menzies would agree with me that at the present time his Government have got into difficulties. We have had restrictions in recent months because the banks, through the operations of companies, particularly in the hire-purchase field, have taken the control of Australia's economy away from the Federal Government. And of course their powers are much more potent than in the State field. I think he would be one, as this Government should be, to welcome any exposure of the interests and the activities and the business association that banks have with companies that are operating in a big way throughout the State. The small businessmen should be given more protection from the operations of those companies than they are getting at the present time. As a matter of fact it would be fair to say that the soul of the business life in Queensland has already been plucked out of the business world by the takeover activities of the southern companies and the southern investing authorities. The small businessman with the little corner store, who in the days gone by was a very potent force and exercised a big influence on our national way of life, has almost gone out of existence. His impact on the community is no longer felt. Progress reported. The House adjourned at 1.1 p.m.