Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Wednesday, 29 June 1921

Senator PEARCE (Western Australia) (Minister for Defence) . - I am rather glad that .this question has been raised. because, it affords me an opportunity to point out the unfortunate position in which these Factories find themselves. Take, for example, the Clothing factory, which provides the uniforms for our Forces. That Factory has no funds of ite own, because, although there is a vote for the cost of the uniforms, that vote is not paid over to the Factory, but is paid into a Trust Fund. The salary of its staff and the wages of its employees are paid out of that fund, as is also the COSt of the materials which it uses. In the case of the uniforms, the money for material is paid from the Trust Fund in question into the Trust Fund of the Woollen Mills, which supply the cloth. The proceeds, therefore, from these Factories find their ' way into the Consolidated Revenue, and there is. .a vote from the Consolidated Revenue into the Trust Funds to keep the Factories going. If any of these Factories make, a profit,, as most of them do, that profit is not shown, except in their balance-sheets. The Woollen Cloth Factory made a profit of upwards of £6Q,000 one year, but that profit did not go into the Trust- Fund. It was paid into the Treasury, and the Treasury month by month pays into the Trust Fund -.sufficient to keep the-. Factory solvent, and to enable it to -pay its operatives as well as to pay for the material which it requires.

Senator Crawford - - Are the earnings of the Factories, treated as ordinary revenue?

Senator PEARCE - Yes.

Senator Crawford - And those earnings go through the ordinary accounts ?

Senator PEARCE - Yes.

Senator Duncan.Isthe balance paid over monthly!

Senator PEARCE - Yes; it is paid into the Trust Account. The only payments into the Trust Account are made direct from the Treasury. All the receipts from each Factory are paid into the Treasury. That fact explains the votes which are proposed under this Bill. They do not imply that the Factories have made a loss.

Proposed vote agreed to. {Divisions 80 to 95 (Department of the Navy), £240,643.

Suggest corrections