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STATES GRANTS (CAPITAL ASSISTANCE) BILL 1981

Order of the Day read for the adjourned debate on the Question--That this Bill be now read a second time.

Senator Walsh moved an amendment, viz: At end of motion, add "",but the Senate is of the opinion that the Bill, by further sharply reducing the real level of funds for State government capital works, is--

(a) making it impossible for the States to provide an adequate capital expenditure programme;

(b) reducing the extent and standard of community services;

(c) undermining the efficiency and productive capacity of many industries, especially the building industry;

(d) producing unbalanced development by facilitating expansion of infrastructure for the resource industries while severely contracting expenditure on the social infrastructure;

(e) increasing unemployment; and

(f) intensifying pressure on the States to introduce a second income tax''.

Debate ensued.

Statement by Senator: The Leader of the Australian Democrats (Senator Chipp), by leave, made a statement.

Personal Explanations: Senators Walsh, Harradine and Haines, by leave, made personal explanations relating to matters raised during debate this day.

Question--That the words proposed to be added be added--put.

The Senate divided--

AYES, 25

Senator-- Senator-- Bolkus Keeffe Childs McIntosh Coates Mulvihill Coleman Primmer Colston Ray, Robert Elstob Ryan Evans Sibraa Georges Siddons Gietzelt Tale Grimes Walsh Grimes Harradine Hearn Teller: Jones Robertson

NOES, 30

Senator-- Senator-- Archer Martyr Baume Mason Bjelke-Petersen Messner Bonner Missen Carrick Reid Collard Scott Crichton-Browne Teague Durack Thomas Guilfoyle, Townley Dame Margaret Walters Haines Watson Hill Withers Lajovic Young Lewis MacGibbon Macklin Teller: Martin Kilgariff

Amendment negatived accordingly.

Question--That this Bill be now read a second time--put and passed.

Bill read a second time.

The Senate, according to Order, resolved itself into Committee for the consideration of the Bill.

In the Committee

Bill, by leave, taken as a whole and agreed to.

Bill to be reported without amendment.

The President resumed the Chair; and the Temporary Chairman of Committees (Senator Collard) reported accordingly.

On the motion of the Minister for Finance (Senator Dame Margaret Guilfoyle) the Report from the Committee was adopted, and the Bill read a third time.