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THE PARLJAlHENT OF TI-IE COI\I lVION\VEALTH OF AUSTRALIA.

REPORT OF THE

ROYAL COMMISSION ON THE

FINANCES OF SOUTH AUSTRALIA,

AS AFFECTED BY FEDERATION,

TOGETHER WITH

APPENDICES.

by Command; o·rdered to be pr·inted, 24th Attgust, 1929 .

[Oost of Paper :- Preparat ion, not given ; 94J copies; approxima,te cost of and p nb!i;;;hing. £69.]

P r inted a nd PublislJ ecl for the G ovEHK:ME:::\'T of the C O ;\L\W N\Y EA LTH of Ly

H .. T. G HEEN, Government P r inter, Canl e rra .

No. 44.-F.2000j 28.-PRICE 2s.

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COMMONWEALTH OF AUSTRALIA.

GEORGE THE FIFTH, by the Grace of God, of Great Britain Ireland and the British Dominions beyond the Seas King, Defender of the Faith, Emperor of India.

To our Trusty and Well-beloved :

The Right Honourable SIR JosEPH CooK, P.O., G.C.M.G.

HERBERT RoBINSON BROOKES, Esquire, B.C.E.

ALBERT EDWARD BARTON, Esquire, M.B.E., F.C.A. (Aust).

GRE:&TING:

KNOW YE THAT We do, by these Our Letters Patent, issued in our name by Our Deputy of Our Governor-General ot Our Commonwealth of Australia, acting with the advice of Our Federal Executive Council, and in pursuance of the Constitution of Our said Commonwealth, the Royal Commissions Act 1902-1912, and all other powers him thereunto enabling, a,ppoint you to be Commissioners to enquire into and report upon-

(o) The effect of Federation upon the financial position of the State of South Australia; and

(b) Any special financial disability which affects that State as a result of Federation;

and to recommend whether any, and if so what, steps should be taken by the Commonwealth or the State to remedy any such financial disability found to exist.

AND WE APPOINT you, the said Right Honourable Sm JosEPH CooK, P.O., G.C.M.G., to be the Chairman of the said Commission.

AND WE DIRECT that, for the purpose of taking e-.,idence, two Commissioners shall be sufficient to constitute a quorum and may proceed with the enquiry under these Our Letters Patent.

AND WE REQUIRE you with as little delay as possible to report to Our Governor-General of Our said Commonwealth tho result of your enquiries into the matters entrusted to you by these Our Letters Patent.

IN TESTIMONY WHEREOF We have caused these Our Letters to be made Patent, and the Seal of Our said Commonwealth to be thereunto affixed.

(L.S.)

WITNESS Our Trusty and Well-beloved SIR DuDLEY RAWSON STRATFORD DE CHAIR, Admiral in Our Royal Navy, Knight Commander of Our Most Honorable Order of the Bath, Member of Our Royal Victorian Order, Our Deputy of Our Governor-General and Commander-in-Chief in and over Our of Australia at Sydney, this twenty-eighth day of July, in the year of Our Lord One thousand nine hundred and twenty-eight, and in the nineteenth year of Our Reign.

D. R. S. De CHAIR,

Deputy of the Governor-General.

By His Excellency's Command,

S.M. BRUCE, Prime Minister.

Terme of Reference

Introduction

Case for South Australia

State Finance

Financial

Public Debt

Loan Expenditure ..

Railways

General Developmental Expenditure

Taxation

Primary Production

Secondary Indus,tries

Customs Tariff

Arbitration

Navigation Act

Roads Policy

Federation and South Australia

Amount of Grant

Recommendatl.ons

Summary of Report

Concluding Remarks

Acknowledgment ..

Appendices-( I) Value of Australian Production

(2) State Revenue from Direct Taxation

CONTENTS.

(3) Unit of Production-Direct Taxation expressed as a percentage of .the Value of Production previous year

( 4) Direct Taxation per Head of Population in each of the States

(5) Agricultural Production-Area under Crop

(6) Agricultural Production-Wheat

(7) Agricultural Production-Vineyards

(8) Agricultural Production-Wine

(9) Agricultural Production-Raisins and Currants Dried

(10) Pastoral Production-Wool ..

(11) Manufacturing Industry-Factories-Employment

(12) Manufacturing Industry-Factories-Value added in Process of Manufacture

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COMMONvV.EALTH OF

REPORT OF THE COM!fiSSIONERS.

INTRODUCTION.

To His Excellency the Right Honourable JOHN LAWRENCE, BARON STONEHA VEN, a member of His Majesty's Most Honorable Privy Council, Knight Grand Cross of the Most DistinguiRhed Order of Saint Michael and Saint Companion of the Distinguished Service Order, Governor-General and Commander-in-Chief in and over the Commonwealth of Australia.

May it please your Excellency:

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We, the Commissioners appointed by Royal Letters Patent to enquire into and Appointment report upon- or

(a) the effect of Federation upon the financial position of the State of South Australia ; and (b) any special financial disability which affects that State as a result of Federation;

and to recommend whether any, and if so what, steps should be taken by the Commonwealth or the State to remedy any such financial disability found to exist, have the honour to report as follows:-

1. On the day of our appointment, we met in Sydney and discussed the pre- Preumtn&ry liminary arrangements necessary to facilitate our investigation. Before proceeding observatlollli. to . Adelaide, we read the reports on the finances of Tasmania and Western Australia as affected by Federation. We held public sessions at Adelaide, Sydney and Melbourne,

and received evidence fron1 officers of the South Australian and Commonwealth Governments, from representative persons in trade and industry in South Australia, and from private citizens, hearing in all thirty-nine witnesses. In addition, we · met the State Premier (Ron. R. L. Butler) in private informal session. Visits were paid

to the A.delaide Railway Station and the Islington Railway Workshops in order to make ourselves personally acquainted with the general conditions of the railways.

2. It will be helpful, perhaps, if in the first instance we make a brief. historical Historical review of the position as at the. time· of our appointment, detailing the steps taken by the Government of South Australia to meet what had already become an acute and pressing problem.

In January, 1927, a State Royal Commission was appointed to enquire into and report upon :- ·

(a) The relationship of the Comn1onwealth and the State of South Australia regarding finance ; (b) The disabilities sustained by South Australia. arising out of Federation; and

(c) What steps should be taken t_o remedy such financial disabilities, if any.

The Commissioners examined · several witnesses, but in August, 1927, the Commission was revoked by a new Government. The evidence taken h&s been perused by

Causes of financial situ::.tion .

8

In May, 1927, the Premier appointed a Special Con1mittee to report on the following matters :-(a) The operations of South Australian Railways, particularly as regards the prospective financial effect of the Rail,;vays Rehabilitation

Scherne.

(b) The question of the a1nalga1nation of Governn1ent Departments.

(c) Economies t hat can be effect ed in the Governn1ent Service generally.

(d) The best n1ethods of dealing with the various . Suspense Accounts detailed on pages 192 and 193 of the Report of the Auditor-General for the year ended 30th June, 1926. .

(e) The financial operations and position of the State of South Australia generally, and the best 1nethod to be adopted to enable the State to balance its accounts each year. ·

Three reports were submitted by this Committee in Oct ober, Novmnber and December, 1927, respectively, and copies were tendered as exhibits in the official case presented to us.

In Septen1ber, 1927: the State Cabinet appointed a Co1nmittee t o finalize t he work of the Royal Cornmission on t he Financial Effect of Federation, to draw up a report summarizing the evidence given before that Commission, and to prepare a state­ ment setting out a draft case suitable for submission to the Co1nmonwealth Government for special financial assistance to South Australia. A report was presented in December,

1927. The official witnesses giving evidence before us used this report as the foundation of their case and indicated that their evidence was to be taken as a continuation of the report.

3. The case for South Australia was ably and fully stated by the Co1nmittee appointed for the purpose, consisting of Messrs. R. R. Stuckey, Under Treasurer ; A. J. Hannan, Crown Solicitor; and L. G. Melville, Public Actuary. Every facility was afforded us by the Government to make ourselves acquainted with the real position of affairs.

4. We had also the benefit of pe'rusing copies of the three reports of the Special Co1nn1ittee on State Finance. The first progress report of this Special Committee dealt wholly with the railway situation, and n1ade it perfectly plain that the · huge expenditure on the rehabilitation scheme had n1uch more to do with t he present financial position of the State than the legislative actions of the Federal Government. In our opinion, the revelations made in the reports of this Committee concerning State finance State Treasury figures, railway finance, the railway rehabilitation scheme, uneconomic developmental schemes and State commitments were of such a nature as to stir the con1munity, and doubtless the official witnesses were influenced by the Special Committee's criticism of the po]icies and adn1i nistrative practices of the State itself. The result appeared to us to be a much modified criticisn1 of Federation as being the cause of all their troubles.

CASE FOR SOUTH: AUSTRALIA. 5. The 'evidence submitted· in the course of our inv:estigation purported to show that since 1914. the financial situation in South Australia had become difficult, and the causes were ascribed to-

( a) The tremendous increase in the total Customs collections, reducing the proportion from a 50 per cent. return to the State in 1910 to one of 17 per cent. at the present , (b) The decrease in the purchasing power of money.

(c) 'l'he entry of the Commonwealth into the field of direct taxation. (d) The effect of the war on general econo1nic conditions entailing increased expenditure and a rise in the rate of interest. (e) The high level of wages and prices of 1naterials consequent upon the

operation. of Con1monwealth Arbitration awards, the Navigation Act and the continual increases in the Customs tariff. . (f) The higher cost of qevelopmental schemes.

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6. IY.I:any reasons were given why South Australia is entitled to a special grant Reaso!1s for fr01n the Commonwealth. Of these the principal are:- (a) The tariff has resulted in the taxing of the unprotected industries of South Australia and has benefited mainly the protected industries

of New South Wales and Victoria.

(b) Developmental expenditure by South Australia has meant direct monetary loss to her, but direct monetary gain to other States and more particularly to the Federal Governn1ent. (c) The cost of uneconomic works is not properly distributed

over the Commonwealth. .

7. Other statmnents 1nade are:-(a) High costs of ·production largely 'due to Federal policy have caused previously thriving industries in South Australia to decline. (b) The Commonwealth Governn1en.t has frequently urged that the railway

line be completed from Red Hill to Port Augusta, and therefore should bear some liability in respect of the capital expenditure of £956,658 incurred on the Salisbury-Red IIill Railway. (c). South Australia has suffered disadvantages fron1 Con1monwealth

bounties to such industries as cotton and steel, and also from embargoes placed upon such imports as sugar. (d) The charges for the main services of the Government and the taxation per head are higher than in any other State of the Commonwealth.

(e) In 1926-27, after a succession of good seasons, t he State was faced with the largest deficit in its history, amounting to £1,050,050. In the succeeding year, the deficit ·was £274,931, in spite of increased charges for governmental services and increased taxation. For the current financial year, the estimat ed deficit is £618,508.

STATE FINANCE.

8. The financial records and the evidence of South Australian witnesses show Expenditure that up to 1914 the economic condition of the State was sound and any disabilities gg:Soudated under which the State may be suffering as a result of Federation had not made t hemselves Revenue. apparent prior to the commencement · of the war. Since then, expenditure from

Consolidated Revenue, which in 1913-14 was £10 9s . 3d. per head of population, has shown a rapid increase to £20 3s. 8d. per head in 1927-28. This is not a condition peculiar to South Australia. A similar rapid rise took place in every State of the Commonwealth. In 1926-27, however, there was an increase in South Australia much above the average of previous years, due chiefly to an abnormal increase in railway working expenses, but this was counter-balanced to some extent by a reduction in these

expenses in the following year.

9. In common with all States, the two heads of expenditure which cmnprise Public Debt the greater. portion of the total expenditure from Revenue, are Public Debt Charges for interest, sinking fund and flotation expenses and Railway Working Expenses. Comparative figures showing the increase in the last fourteen years are:-

Year. Public Debt Charges.

Railway Working Other. Total Revenue Expenses. Expenditure. I

£ £ £ £

1913-14 . . . . .. 1,260,892 1,587,223 1,756,015 4,604,130

1927-28 . . . . . . 4,312,625 3,452,532 3,856,677 11,621 ,834

Increase .. . . . . 242 per cent. 118 per cent. 120 per cent. 152 per cent.

In recent years the Public Debt Charges have increased rapidly, and. at present the tot al represents a large percentage (37 . per cent.) of the expenditure ,from Oon,solidated Revenue.

Surpluses and deftciu.

Causes of deficits.

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In the year 1926-27, the latest year for which official statistics have been published, the figures for the several States are:- .

State. Public Debt Charges Total Revenue Expenditure Percentage. 1926-27. 1926-27.

£ £

New South Wales 0. 0 0 • 0 8,719,314 42,690,634 20·.42

Victoria • 0 .. 0 0 0 0 7,516,575 27,744,903 27.09

Queensland . . .. 0. 0 0 4,831,250 ·' 16,490,954 29.30 South Australia • 0 0 0 .. 4,034,471 11,834,947 34.09 Western Australia • 0 0 0 0 0 3,301,878 9,722,588 33.96

Tasmania 0 0 .. 0 0 • 0 1,164,916 2,855,077 40.80

All States . . • 0 .. 29,568,404 111,339,103 26.56

These figures indicate that, in South Australia, public debt charges represent a larger percentage of the expenditure from Consolidated Revenue than in most of the other States. _ 10. The official financial statements published bySouth Australia disclose that,

since 1914-15, the surpluses and deficits have been:-

1914-15 ..

1915-16 ..

1916-17 ..

1917-18 ..

1918-19 ..

1919-20 ..

1920-21 ..

1921-22 ..

1922-23 1923-24 ..

1924-25 ..

1925-26 1926-27 ..

1927-28

Year.

..

'

Surplus .

£

25,807

125,749

5,183

53,001 13,151

Deficit.

£

"

689,085 384,409 315·,850

78,498

392,274 54,489

53,259

1,050,050 274,931

11. In considering the deficits disclosed during this period in South Australia, a State in which agriculture plays so large a part not only in the prosp_ erity of the people but in the business of the railways, due weight must be given to the seasonal conditions which obtained. In 1914, as Mr. Wickens points out, Australia experienced one of her worst droughts, and an indication of its effect on the community may be obtained from a comparison of the value of total production in South Australia for 1912, 1913

and 1914, the total amounts being £19,278:000, £17,889,500 and £14,934,000 respectively. Its effect on the finances of the State chiefly covered a period of two years, as the following figures . illustrate :-- · ;· o.

Direct Railway

I

Total Total

Year. Taxation. Revenue. Revenue. Expenditure from Revenue.

£ £ £ £

1913-14 . 0 • 0 .. 730,640 2,402,141 4,822,766 4,604,130

1914-15 • 0 0 • • 0 588,690 1,779,012 3,973,310 4,662,395

1915-16 .. 0. 0. 701,511 1,998,643 4,356,968 4,741,377

1916-17 • 0 . . .. 726,645 2,295,682 4,874,603 5,190,453

. •I

In· 1918 and 1919, Australia was in the throes of another drought by no means as severe but more protracted, and to its effect .on the railway revenue in South Australia in may be ascribed the deficit of £78)498 in the finances of the State. Between 1918-19 a:n,d 1926-27 the only deficit of serious dimensions was that of £392,274 in 1920-21, and there does not seem to be any doubt that this particular deficit was· caused

by the heavy increases in salaries and wages which occurred ill. that and _ which

11

were occasioned directly and indirectly by the increase of the basic wage from 1 Os. to 12s. 6d. per day. This increase was determined by the State Arbitration Court as conforming to the economic conditions existing at the time.

12. In 1926-27 South Australia experienced the largest deficit in the history of the State, viz., £1,050,050, and an examination of the circumstances indicates that it was (!.ue neither :to seasonal conditions nor increases in wages granted during that· year. While the total State revenue showed an increase over the previous year, railway revenue had somewhat declined. On the other hand, the Treasury accounts show that expenditure from revenue on railways increased by £767,171, and interest on the Public Debt, to which £386,512 had been added in 1925-26, was further increased by £406,938.

In attempting to explain the retrogression in the finances between 1925-26 and 1926-27, witnesses for South Australia admitted that expenditure - correctly chargeable against the revenue of the financial year 1925-26 had been omitted from the Treasury figures by debiting a suspense account, the object of this procedure being to keep railway working expenses within the amount appropriated by Parliament. When it was realized three months before the close ·of the . financial _year that the appropriation would be exceeded, the Government should not have hesitated to submit supplementary estimates for the excess involved. In the Estimates of the following year (1926-27), it is noted that a similar practice was contemplated, but fortunately wiser counsels prevailed and supplementary estimates were passed by Parliament.

For the year ended 30th June;) 1928, direct taxation yielded an additional £677,456 while railway working expenses were, according to the Treasury accounts (which differ somewhat from the figures published in the annual reports of the Railways Commissioner), reduced by £418,557. -This improvement in the finances of the State would have been sufficient to balance the ledger were it not for the fact that interest on the Public Debt was further increased by £284,131.

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13. In addition to utilizing Suspense Accounts to · cover charges which should unsound I h b d · C I'd d R · G methods of proper y ave een rna e against onso I ate evenue, successive overnments finance have adopted various methods of accounting, which have had the result of presenting their financial position over a series of years in a. more favourable light than the facts warranted. In the course of the evidence[ given by the State Under-Treasurer, the following facts were elicited:-

(a) The provision for depreciation on wasting assets had· been very lin1ited. (b) Large amounts of interest and administrative expenses in connection with soldier settlement had been improperly charged to loan account. (c) Certain interest on Irrigation Works had been wrongly capitalized. (d) Contributions to Sinking Fund had been discontinued for a period of

six years to 30th 1921.

Th·e following table, which was included in the evidence of the Under-Treasurer, shows how the Financial Statements published by the South Australian Governments over a period of fourteen years would have appeared had the proper charges been made against Consolidated Revenue from year to year :-

Soldier ·settlement Losses on Interest and Administrative Depreciat-ion Interest costs capitalized. Surpluses as Deficits as Sinking Fund capitalized on of Wasting Deficit as Year. Contributions Assets (ap- published. published. suspended. Irrigation proximately) finally adjuste_d Works. Adminis- Interest. tration. £ £ £ £ £ £ £ £

1914-15 . .. .. 689,085 .. 8,930 .. .. IOO,OOO

I915-I6 .. .. 384,409 95,649 10,843 .. .. I08,000 598,901

1916-17 .. .. 315,850 102,778 12,252 .. .. 116,000 546,880

1917-18 .. 25,807 .. 108,041 13,948 .. .. 124,000 220,182

1918-19 .. .. 78,498 112,321 16,800 .. . . 132,000 339,619

1919-20 .. 125,749 .. 117,585 25,171 . 117,585 .. 140,000 274,592

1920-21 .. .. 392,274 125,386 42,752 125,598 .. 148,000 834,010

1921-22 .. .. 54,489 .. 63,868 160,014 156,000 434,371

1922-23 .. 5,183 .. .. 98,657 211,191 *199,638 164,000 668,303

1923-24 .. .. 53,259 .. 120,617 190,278 72,524 171,000 607,678

1924-25 .. 53,001 .. .. 114,101 222,645 62,451 178,000 524,196

1925-26 .. 13,151 .. .. 106,713 216,465 59,638 185,000 554,665

1926-27 .. .. 1,050,050 .. 98,636 185,401 55,878 192,000 1,581,965

1927-28 .. .. 274,931 .. .. 213,515 46,216 200,000 734,662

Total 00 222,891 3,292,845 661,760 733,288 1,642,692 496,345 2,114,000 8,718,039

• Total to 30th June, 1923.

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14. The failure to provide for this expenditure annually was one of the underlying causes of the present condition of the South Austrahan finances. Absence of provision for depreciation, particularly in the case of the railways, has involved the State in enormous expenditure from loan during recent years in the replacement of worn-out assets. Soldier settlement losses have been so gTeat as to necessitate application to the Commonwealth Government for relief from part of the capital indebtedness.

The capitalization of interest on the cost of re-productive works during construction is based on sound principles, and, provided ·construction proceeds with · reasonable expedition, is in accordance with accepted practice . Where, however, construction is considerably delayed and even completely held up as in the case of

some of t he South Australian irrigation areas, the capitalization of interest during such period is most irregular and cannot be too strongly condemned from the point of view of sound fin ance. It is of the utmost importance to the credit of the Stat es and, indeed, of Australia

as a whole, that investors abroad should have no grounds for a feeling of lack of confidence in the strict accuracy of governmental accounts. Apart from this aspect the postponement of charges against Revenue of the class referred to by the Under­ Treasurer has had the effect of imposing a permanent burden on the State taxpayers amounting to £250,000 per annum. The wiser course would undoubtedly have been to face the position as it arose by increasing t axation sufficiently to balance the accounts.

FINANCIAL AGREEMENTS.

Financial 15. In the Report on the Financial Effect of Federation on South Australia,

relations an historical survey of. the fina_ncial relationship between the St at es and the

Commonwealth has been g1ven. It 1s made clear that at a Conference of Commonwealth and St at e Ministers in 1909, the State Premiers agreed t o accept in lieu of 75 per cent. of the ·Customs and Excise revenue a per capita payment of 25s. In view of the old-age pensions and ot her financial commitments which would have had to be met by the St ates this was regarded as a fair and reasonable arrangement at that time. The basis of 25s. agreed upon represented 50 per cent. of the total Cust oms and Excise Revenue collected by t he Commonwealth. Since that time, and, indeed1 ever since the original financial compromise was fir st placed in the Constitution, there has been ample opportunity for South Australia to endeavour to persuade her interstate colleagues and the Commonwealth to adopt a different method of Customs and Excise allocation, but if this was done it was quite without result. There has been an enormous increase in the Cust oms and Excise R evenue since 1909- 10. Fortunat ely this has been available to meet the continuously increasing war obligations of the Commonwealth Government, and without it very serious financial embarrassment wouldhave resulted. The world war dislocated and, in many inst ances, completely destroyed the financial systems of large Empires. In common with the whole world the Commonwealth and St at es have shared the results of this tragedy. So generally has this been recognized that even in the most recent fin ancial agreement confirmation by State Governr.aents has been unanimous.

Public Debt ol all States and rapid increase in South

Australia .

PUBLIC DEBT.

16. The increase in the gross Public Debt of all the States forms an interesting comparison as follows:-STATE PUBLIC DEBTS.

30th J une. New Sout h Victoria. Queensland. South Australia. Western Tasmania All Statu. Wales . Australia. - -·

Total.

£ £ £ £ £ £ £

1901 67,361,246 50,071,275 38,416,514 26,448,805 12,709,430 8,511,005 203,518,27 5

1913 106,170,747 64,496,966 53,604,733 30,147,883 30,276,436 11,505,641 296,202,406 1919 147,209,645 83,395,483 65,252,829 42,637,206 43,691,010 15,301,656 397,487,829 1928 258,474,898 157,283,470 112,208,969 92,223,166 77,172,906 24,826,560 722,189,969 Per Head of Population.

£ s. d. £ s. d. £ s. d. £ s. d. £ $. d. £ $. d. £ '· d. 1901 .. 49 9 4 41 12 5 76 9 8 73 6 0 67 8 0 49 11 4 53 14 6 1913 . . 58 8 1 46 511 81 6 3 68 18 5 96 12 6 59 12 11 61 10 7 1919 .. 73 14 9 56 11 8 90 4 8 91 0 3 136 13 10 74 17 1 76 12 11 1928 .. 106 13 6 89 18 1 123 1 5 159 12 5 193 1 6 117 19 4 115 210

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In the first twelve years of :Federation, the loan policy of the State Governments was, with one exception, very moderate, when viewed . in t he light of present day efpenditure. The liability per head of population for all the States increased by £7 16s. 1d. while in South Australia there was a decrease of £4 7s. 7d., due to the increase in population and to the reduction of the Public Debt by £6,170,548 representing capital indebtedness on the Northern Territory and the Port Augusta­ Oodnadatta Railway taken over by the Commonwealth at 1st January, 1911. In the next 8ix years, the figures indicate a more rapid rate of borrowing throughout Australia, and in South Australia that rate was proportionately greater than in most of the States. In the nine years from 1920 to 1928, all States, for various reasons, greatly increased their borrowings, the total rising by 82 per cent., or £38 9s. 11d. per head of population. In South Australia, the increase was 116 per cent. or £68 12s. 2d. per head of population. The Auditor-General for the State of South Australia has on several occasions drawn attention to the increase in the Public Debt and to expenditure on uneconomic loan works the burden of interest on which must be borne by taxation. In his report for the financial year ended 30th June, 1927, he stated :-

" The rapid growth of the Public Debt revealed by the above figures would not be so disturbing if the expenditure created an income which would provide for the interest on the bulk of it, but such has not been the case, as the deficit on Interest Account each year clearly shows. That the State has been over-borrowing is not open to question, but the problem of reducing the arinualloan expenditme is a very difficult one."

LOAN EXPENDITURE.

22l3

17. A reference to the detail of this increase makes it difficult to justify the Excessive rate excessive rate of expenditure since the termination of the war. From 1913 to 1919, the rate averaged £2,160,850 per annum, but for the more recent period of nine years the average was £4,917,686. The principal heads of loan expenditure as at 30th June,

1928, and the corresponding increases in the past nine years are:-

Heads of Loan Expenditure.

Total at 30th June, Increase in

1928. Nine Years.

£ £

Public Utilities-Railways .. . . . . . . . . . . 31,113,837 12,262,041

Metropolitan Waterworks and Sewers . . . . . . 5,346,856 1,501,964

Country Waterworks . . . . . . . . .. 8,660,743 4,836,883

Harbours and Jetties . . . . . . . . .. 7,250,587 3,533,242

Mainly Developmental-

3,223,016 1,532,885 Roads and Bridges . . . . . . .. . .

Irrigation . . . . . . . . . . . . 4,055,671 3,057,900

River Murray Weirs, Locks, &c. . . . . . . . . 1,698,330 1,407,423

Other Developmental Expenditure .. . . . . . . 3,360,597 661 ,918

Loans on Securities, including advances for homes, soldier settlement, &c. (to be repaid) . . . . . . . . 21,405 ,144 12,946,365

Buildings, and Land for Buildings . . . . . . .. 2,615,378 1,352,972

Deficit 1926-27 . . . . . . . . . . . . 1,050,049 1,050,049

Miscellaneous . . . . . . . . . . .. 1,032,958 115,528

Total . . .. 90,813,166 44,259,170

The relative increases of loan expenditure over this period of nine years were :-Public Utilities 73 per cent.

Mainly Developmental 117 per cent.

Loans on Securities 153 per cent.

Other 116 per cent.

Total 95 per cent.

while in the same period the population of the State increased by only 23 per cent.

18. This increase would not be so alarming were it not for the fact that a large Interest on

Proportion of the expenditure has been on uneconomic works. Revenue-producing · h b t t d f l t d t t 1 on works paid assets, whiCh ave een cons rue e rom oan moneys, are expec e o pay no on.y from taxation.

14

working expenses but also the interest on the capital and a reasonable sinking fund contribution. In many cases the revenue derived is insufficient to meet the whole of the interest charges, and ih some the working expenses, and,. where this is so, the balance of interest must be met from the general revenue of the Rtate. The steadily increasing dead-weight of interest to be met from taxation is indicated hereunder:-

Year.

Interest Payable from Amount Available from Balance Covered by

Consolidated Revenue. Revenue-Producing Assets. . Taxation.

£ £ £

1922-23 2,611,495 . 1,915,573 695,922

1923-24 2,904,117 2,175,581 728,536

1924-25 3,211,420 2,394,853 816,567

1925-26 3,594,665 2,441,438 1,153,227

1926-27 4,005,324 1,818,626 2,186,698

1927-28 4,278,087 2,226,440 2,051,647

In addition to the above, the following interest charges have been capitalised principally in connexion with the settlement of discharged soldiers ·on the land :-1922-23 1923-24

1924-25 1925-26 1926-27 1927-28

£

398,062 209,503 232,135 223,085 182,632 214,969

and these figures do not include a total of £538,724 constructional interest on irrigation works capitalized (r.nuch of it irregularly, as previously pointed out) during the five years ended 30th June, 1927.

Main works on 19. Interest by· taxation is payable primarily" on such loan operations

which interest deficits occur. as Railways, Country Waterworks and Developmental Works, the allocation being :-

Some causes of present adverse situatiOn.

Loan expenditure.

Year. Railways.

Country Developmental All other Works, &c. Total covered by Waterworks. Works. Taxation.

£ £ £ £ £

. . .. 4,750 172,369 317,468 201,335 695,922

1923- 24 .. . . 13,108 194,773 358,761 161,894 728,536

1924-25 . . .. 25,534 252,688 385,005 153,340 816,567

1925-26 .. 236,812 275 ,059 414,444 226,912 1,153,227

1926-2]. . . . . 1,192,681 293,715 446,004 254,298 2,186,698

1927-28 .. . . 887,605 296,179 564,306 303,557 2,051,647

In many cases the revenue received from developmPntal works has not been sufficient to pay working expenses, the losses in addition to these deficits in interest being approximately £180,000 within the last six years. Water schemes such as those at Tod River and Beetaloo-Bundaleer were pron1oted obviously to encourage settlement, and it 1nay be assumed that the expenditure on most of the country waterworks has been with the object of developing the country.

20. From the foregoing staten1ents, it will be apparent that the present unsatisfactory financial position has gradually evolved over a series of years and that the serious deficits in the last two years are due chiefly to losses on the railways and on works of a developmental character.

RAILWAYS.

21. In any review of the position of South Australian finance, the railways are a dominant if not the predominant feature. Very naturally, therefore, your Comrnissioners have given the fullest and most careful consideration to this question. The fact that the capital debt of the railways had been increased by, approximately,

15

50 . per cent. during the last five years, caused us to devote a considerable mnount of our enquiry towards ascertaining the reasons for this increase and, from a financial point of view, the result of the additional expenditure. The total exnenditure from ·loans on the railways at of five years since 1913 has been as u{ider :-

1913 1918 1923 1928

Total at 30th June.

£

14,010,477 18,527,755 20,698,802 32,142,994

Increase for five yearly periods.

£

4,517,278 2,171,047 11,444,192

It should be noted that an amount of £1,029,157 has been taken out of the Sinking Fund and applied in reduction of the loan liability of the railways, so that the disclosed capital debt as at 30th June, 1928, was reduced by that amount to £31,113,837.

- 22. By far the greater proportion of the increase during the last five years has Necessity for been expended on or in relation to a rehabilitation scheme, which was approved by the South Australian Government in 1923. Evidence was given, and the facts do not scheme . . seem to be in any way in dispute, that the rolling stock, permanent way, workshops

and other assets of a wasting nature had been allowed to drift into a most inefficient condition, and it also seems certain that some scheme, involving considerable immediate outlay, was necessary in order to render the railways capable of coping successfully with the traffic offering. The present Railways Commissioner, Mr. W. A. Webb, was appointed by the Government and took up his duties in November, 1922, and in 1923 he submitted to the Government a scheme which involved an expenditure of £4,500,000.

Of this amount £1,000,000 was included to carry out the work of broadening gauges which, according to the evidence of Mr. Webb, had already been approved by the Government. In his report on this expenditure to the Minister for Railways in November, 1923, which report was read by the Minister in submitting the estimates to Parliament, the Railways Commissioner . stated that the effect of the expenditure would be an annual saving of not less than £673,500. Actually, the expenditure from loans during the five years ended 30th June, 1928, has been £11,444,1'92, and

the annual interest liability of the railways has been increased by approximately £526,000. The discrepancy between the cost of the scheme originally submitted to Parliament and the actual expenditure called for investigation on our part.

23. In examining the financial history of the railways since Federation, it is Profits and seen that during the first thirteen years a net profit is disclosed in each year with exception of the drought years of 1901-2 and 1902-3. During the thirteen years in question a net profit of approximately £2,300,000 was earned. This series of surpluses, losses. however, was achieved without making any proper charge for depreciation. A serious

drought in 1914 and war conditions had their effect on the next eight years, during which period losses occurred annually, the total being £1,751,595. In this respect, South Australia was not exceptional. During each of the six years ended 30th June, 1921, every State suffered a loss through its railways. '

For the six financial years ended 30th June, 1928, the annual reports of the South Australian Railways Commissioner show the following results:-Profit. Loss.

1922-23 5,769

1923-24 50,754

1924-25 . 58,864

1925-26 54,079

1926-27 894,272

1927-28 698,110

These results are disclosed after excluding depreciation and any extraordinary charges arising out of the rehabilitation scheme already mentioned. The estimates for the current year indicate a loss of, approximately, £600,000 and in addition £200,000 has been provided for depreciation. In considering the annual results during the

past few years, it should not be overlooked that the railways have been relieved of the necessity of paying interest on the Relaying and Depreciation Accounts representing a total loan expenditure of £4,396,929. The interest on .this amount is payable from

Freights and fares in past years too low.

Australian railway disn bllitles.

16

General Consolidated Revenue. In order, therefore, to arrive at the effect of the railway working on the finances of. the State, it is necessary to take such interest into account. From the governmental point of view the railway losses in recent years as disclosed by the Treasury accounts are as under:-.

Year. Losses according to Interest on Relaying and Total Loss. Treasury Accounts. Depreciation Aecounti.

£ £ £

1925-26 .. . . . : . 180,638 56,174 236,812

1926-27 . . . . .. 1,109,393 83,288 1,192,681

1927-28 . . . . .. 662,013 225,592 887,605

while the estimated corresponding loss for the current financial year, excluding the provision of £200,000 for depreciation, is approximately £800,000.

24. In giving evidence as to the condition of the railways in 1923, the Railways Commissioner stated :- .

" Of the operated mileage-2,357 miles-it was found that only 218 miles, or 9 per cent. of the total, viz., the line between Port Pirie and Cockburn, could .be made a profitable line of railway, because of the fact that more than 30 per cent. of the revenues were ·derived from passenger traffic on such a low basis of rates that practically all of it was handled at a loss, and because ·on all of the other mileage the seasonal traffic made it necessary to operate the lines at a loss."

At this time passenger fares were, approximately, 38 per cent: and freight rates 48 per cent. over the 1914 level. In the following years, the revenue showed comparatively little increase, passenger earnings falling off steadily. In August and October, 1926, the urgent necessity of increased freights and fares was pointed out,

and special representations were made to the Government, but it was not until 14th December, 1927, after a report and recon1mendation to this effect by the Special Committee on State Finance, that any increase was made.

25. The Railways Commissioner stated in evidence "that the disabilities of the South Australian railways in comparison with other States are to be found in the following :-(a) The character of the country served and the traffic over so large a part

of the mileage being of a seasonal character; also the fact that so large a part of the preserit Inileage is unprofitable, and always will be unprofitable, because of the very light business handled. This­ mileage has, of course, developed the country, and is supporting from year to year, a larger population. The country could not have been developed without the railways. It is impossible at this time to foresee any opportunity to produce sufficient traffic over the · larger part of the railway mileage to make the rail'Yays profitable. \

1 ) ) The unfavorable location of South Australia in respect of supplies of

coal for use on the railways. (c) The remote location of South Australia from the sources of supply of sleepers, timber, steel, &c., for all classes of railway work, causing large increases. (d) South Australia-, by reason of breaks of gauge, and the isolation of the

Eyre Peninsula lines, has its railway systmn divided into four distinct compartments, which have to be separately supplied with power and rolling-stock. This does not permit such economical or convenient handling of traffic as is possible when the loco1notives and cars can be distributed to any part of the whole system to meet

demands of traffic. There is also the cost of transfer at breaks of gauge. " The Railways Commissioner also quoted instances of unnecessary duplication of lines and of branches on the Eyre Peninsula, for which justification did not exist. He stated that there are several short.lines near Adelaide which certainly could not be justified.

221_7

17

26. insight into the working expenses of the railways is afforded

by a companson of the expenditure In the years 1914-15 and 1927- 28 :- P · ·

Year. Wages. Coal. Contingencies. Interest .. Tot al Cost.

£ £ £ £ £

1914-15 .. . . . . . 916,433 165,795 366,267 584,811 2,033,306

1927-28 .. . . . . 2,305,836 538,991 581,17"9 1,·271,687 4,697,693

Increase . . . . 1,389,403 373,196 214,912 686,876 2,6'64,387

I

· Regarding wages, the Railways Commissioner states that the increases in this period .of years, due directly and indirectly to wage awards of the various

tnbunals, to over £1,000,000 per annur.11 . The price of coal has

Increased In the same period from 2ls. t o 44s. lOd. per ton. In considering the increase the cost of due allo·wan?e must be Inade for expenditure not charged

In 1914-15, such as pensions and supphes for refreshment and road motor services, the extra expenditure under these headings in the year 1927-28 being, approximately, £135,000. Furthermore, prices of commodities generally have shown a considerable increase since 1914. · . .

27 . The position of the South Australian railways from a financial point of view serious is un9-uestionaply a one. It is that if the railways could be made t o pay

workrng expenses and Interest on the capital debt, the financ1al problem of the . State, ratlways. as it exists at present, would be solved. In saying this, we do not overlook the fact that the railways of all the States are far frmn being in a healthy condition economically, and the same rmnark is applicable to the majority of railways throughout the world.

No doubt difficulties arise owing to the fact that some of the heaviest charges with which the · railways of all the States are at present faced are outside the control of those responsible for their management. Other of the difficulties are undoubtedly due to the fact that for many years past the r ailways _have not been run on economically sound lines, and that they are at present being faced with an accun1ulation of expenditure which, had sounder n1ethods been adopted, would have been charged systematically

over a series of years. The defects of the policies of past years have been faced by South Australia earlier than by the other States , each of which will doubtless in turn be compelled to face a somewhat similar position to that in which the administration of the South Australian railways found itself in 1923.

28. The rehabilitation schen1e n1akes provision for extensive improvements, cost or -l including the purchase or construction of a number of heavy type engines, larger rolling stock, heavier rails, new workshop plant and equipment and 1nore commodious central station premises. As alresJdy stated, this scheme has involved an expenditure greatly Parliament.

in excess of the amount which was originally disclosed to Parliainent. In the report of the Railways Con1mission er, which set out the details of the proposed expenditure of £4,500,000 and which was read in Parliament in November, 1923, by the then Minister for Railways, no 1nention was made, nor was any indication given by the Minister at that time, that the whole scheme would involve a much greater expenditure.

The members, however, were infonned that the Commissioner estiinated that, by the expenditure of this su:rp, there would be an annual saving of not less than £673,500. In his evidence before us, Mr . \Vebb stated that the Governmep_t of the day was well awate of the fact that during the course of a few years the expenditure on rehabilitation would be greatly in exce·ss of £4,500,000, and provided us with a copy ·of his letter to the Minister dated 16th October, 1923, which contemplated a . further expenditure

of £4,246,000. It is impossible for us to say whether Parlia1nent would have approved of the expenditure of £4,500,000 had it known that this v,ras merely the first instalm_ent in a scheme" which would cost more t han double that amount. vVe think, however, that Parliament was ·undoubtedly entitled, before being asked to eor.11mit the State

to this to have before ,it of the

programme subnntted to the Governn1ent by Mr. Webb, togetner with an estimate of its total cost. We are at a disadvantage in that we are not in a position to offer any expert opinion on what is, after all, an :proble1n. \Ve a:re satisfied that s?n1e

substantial rehabilitation was necessary, but 1t IS open to question whether a Inodified schmne which would not involve the huge expenditure actually incurred, would not have more in keeping with t he present and traffic requirements of

South Australia. Mr. Webb, h owever, firmly maintan1ed that. th e scheme adopted was inevitable and, in the end, would prove to be the most economical. F.200.0/ 28.-·-2

Ftnnnclal results of rehabilitation scheme:>.

position and nat. ural conditions of State.

Area and rainfall.

18

29. We have already noted that the effect of the large capital expenditure on the railways has been to increase the annual interest burden by, approximately, £526,000. This very considerable addition to the annual charges which should be paid from the railway revenue, was deliberately incurred at a time when, on the authority of the Railways Commissioner himself, there were no prospects in the immediate future of any appreciable additions to the railway earnings. The earnings for fares and freight during the nast five years have been as under:-

1923-24 1924-25 1925-26 1926-27 1927-28

£

3,845,004 3,921,601 3,856,163 3,883,972

3,736,607

Altogether £11,000,000 has been expended. This total includes the construction of 168 miles of new railway, and the conversion of 210 miles of narrow-gauge line. With the railway earnings practically at a standstill, the expenditure of so large an amount could, from a financial point of view, only be justified if a considerable saving in working expenses could be effected. As already mentioned, the Railways Commissioner anticipated a large annual saving in working expenses on an expenditure of £4,500,000, but the working expenses, after excluding interest, depreciation and all extraneous charges, have, in fact, increased by £567,432 per annum. It is only fair to the Commissioner to add that' during the five years, with practically a stationary income, there have been considerable increases in wages and material costs, but these are in no way commensurate with the wide difference between the anticipated saving of £673,500 and the actual increase of £567,432 in general working expenses. The

Commissioner himself quite candidly admitted his disappointment that the results foreshadowed had " not materialized. He attributed this very largely to motor con1petition, adverse seasons, and the operations of the Federal· Arbitration Court. ln common with all States, the South Australian railways have suffered in recent years fron1 these causes. The questions of motor competition and the operations of the Federal Arbitration Court wi11 be dealt with at a lat.er stage in this report.

As a consequential resn1t of the rehabilitation seheme, the railways should be receiving now the full benefit of a large quantity of new and modern rol1ing stock, and of an up-to-date plant in the workshops, and to this greater efficiency may be ascribed the reduction of £280,162 in working expenses as between the year ended 30th June, 1927, and that ended 30th June, 1928 . . Unless this reduction in expenoiture is continued

for some years, the financial position of the South Australian Railways will be such as to constitute a serious and continual drain on the national purse.

GENERAJ_J DEVELOPMENTAL EXPENDITURE.

30. In searching for the causes of the present financial position of South Australia, it has become very clear that her disabilities arise chiefly fron1 her geographical position, her adverse natural conditions..,-climate, rainfall and natural configuration-and lack of natural resources. In every Federal form of Government the same phenomena

appear., The advantages and disadvantages follow the course of nature, and distribute themselves uneve:p.ly . as between the member States. To balance these natural inequalities, it is found necessary to· mak-e provision from tin1e to time for so1ne form of co1npensation. The latest instance of this is to be found in the Report of the Canadian " Royal Commission on Maritime Claims " published in 1927. This Royal Commission was appointed by the Canadian Federal Government to investigate "the conditions and claims of the people of the Maritime Provinces, and to make, as a result of such inquiry and examination, such specific recommendations as would result in affording relief frorri the conditions complained of". The result was a recommendation

of interim lump sum increased payments amounting to £325,000 per annum, in addition 'to many other suggestions affording relief to the provinces named. The same principle is adopted in the United States of America, and will be referred to later in this report. The total area of South Australia is 380,070 square n1iles, of which 212,675

square miles are occupied. Of this area, only 69,410 square or, only 18.3 per cent. of the total, have an average annual rainfall of over ten inches. The handicap that South . Australia suffers in this respect in comparison with the rest of Australia will be realized from the fact that, of the total area of all the other States, 70 per cent. has an average annual rainfall of over ten inches. This condition arises in part from her paucity of forests. It is an admitted fact that forests exercise a great influence on climate and

19

water supply. When a region is protected by trees, a steadier water supply is ensured and the rainfall is better conserved. An illustration showing how badly South Australia is served in this respect is provided by a comparison of. the total forest area, 500,000 acres, with that of the whole of the Commonwealth, 24,500,000 acres. A further disability to South Australia arises from t he fact that the greater part of her timber is useless for commercial purposes. The consequences of this aridity naturally involve increased expenditure in the developmental schemes carried out by the South Australian

Government both before and since the great war. It is particularly apparent in the policy of development in soldier settle1nents, irrigation and country water-works.

221_9

31. The main contributing causes of this policy were the public den1and in all cont ri butin g the States for the rapid settlement of the returned soldiers, and the necessity for an early resumption of the increase of population by n1igration which had been suspended policy. during the war. There does not seem much doubt that the appreciation of the value of agricultural and pastoral products after the con1mencen1ent of the war influenced the mind of Parliament in South Australia in regard to these n1atters. The appreciation in value of the following main products of South Australia may be noted. Wool

(greasy). which up to 1914 was exported at an average price of less than 10d. per :\ prr.eciation lb., brought enhanced values during the war and later increased in average price to m pnces. 2s. 3d. per lb. The average export price of scuured wool increased from 1s. 6d. per lb. in 1914 to 3s. 4d. per lb. in 1924-25. Wheat in 1913 averaged 3s. 9d. per bushel ; in the y e.:tr 1920-21 the price rose to the phenomenal value of 9s. per bushel. Another example particularly applicable to South Australia is the viticultural industry. In the early years of repatriation the high prices which were being paid for wine grapes appeared to indicate a bright future for this industry. Owing to post-war conditions the shortage ofwine was very 1narked and some varieties of wine grapes were sold for the high price

of £19 per ton. As a result, the Governments in the wine-producing States, and particularly in 8outh Australia, C?ncouraged a large number of returned soldiers to enter the grape growing industry, more especially on the irrigation areas along the River Murray. The area under vines increased by 50 per cent. in the space of four years, and provision was made for further· large extensions. Unfortunately, the failure to secure a sufficiently large oversea market has arrested this developn1ent. · The appre-

ciation of values is best indicated by the following table of index numbers taken fron1 the Commonwealth Year Book, showing the variations in price of the different classes of goods exported :-AuSTRALIAN ExPoRTs-PRICE-LEVELS, 1901, 1906 AND 1911 To 1926-27 ..

Year. Agricultural Pastoral Produce. Dairy Produce.

Mineral Produce. Miscellaneous. All Classes. Produce. (a) (t.l)

1901 . . .. 1,000 1,000 1,000 1,000 1,000 1,000

1906 . . .. 1,155 1,344 1,021 . 1,113 991 1,258

1911 . . .. 1,243 1,193 1,085 944 1,227 1,161

1912 . . .. 1,388 1,268 1,198 1,133 1,254 1,263

1913 . . .. 1,324 1,334 1,124 1,114 1,329 1,290

191 4-15 . . . . 1,480 1,323 1,176 1,066 1,221 1,299

1915-16 .. . . 1,927 1,589 1,488 1,393 1,106 1,591

1916-17 .. . . 1,726 2,131 1,690 1,650 1,357 1,965

1917-18 .. . . 1,954 2,250 1,624 1,760 1,401 2,084

1918-19 .. . . 1,864 2,166 1,855 1,692 1,775 2,033

1919-20 .. . . 2,145 2,393 1;787 2,1 50 2,249

1920-21 .. . . 3,177 2,093 2,854 1,813 2,179 2,254

1-921-22 .. . . 2,108 1,717 1,507 1,427 1,845 1,721

1922-23 .. . . 1,931 2,213 1,845 1,459 1,701 2,039

1923-24 .. . . 1,700 2,930 1,785 1,529 1,803 2,476

1924-25 .. . . 2,304 3,303 1,654 1,600 1,942 2,803

1925-26 .. . . 2,230 2,306 1,717 1,589 1,859 2,152

1926-27 .. . . 2,028 2,269 1,707 1,438 1,861 2,080

(a) Excludmg gold.

32. In the settlement of returned soldiers, the Commonwealth undertook a joint soldier · S h. h f h 1 d · 1 · · t d settlement responsibilty with . tates; :' w : as owners o. t e an ; quite y 1ns1s e on losses. . retainina control of 1ts adm1n1stratwn. In South Austraha practically the whole of the of this administration has been pa.id from loan the l?sses

have been serious, amounting to £2,923,243. Of this amount, £567,000 IS bmng wntten off by the Commonwealth the C¥ital the .State. In

to this. there has been an indirect loss of £2,170,236, whiCh, It IS claimed, has ansen as a

20

result of the pressure for the preparation of irrigated lands for soldier settlement. It seems clear that, owing to the adverse condition of the finances of the State, further relief appears to be necessary. This, however, is a matter already under enquiry by a special expert Commissioner in the person of Mr. Justice Pike, who has been appointed to deal with soldier settlement in all the States. ·

33. In States such as South Australia and Western Australia, where agricultural

1n au states. production predominates, the Governments are called upon for expenditure in connexion

with developmental enterprises, which, in relation to the total expenditure, is comparatively heavy. In undertakings mainly of a developmental character, such as waterworks, sewerage, irrigation, harbours, rivers, roads and bridges, the total loan expenditure per head of population at 30th June, 1920 and 1927, respectively was:-

of aridity.

Hurray River development.

30th June . . New South VIctoria. Queensland. South trail a. Western Tasmania. All States. Wales. Australia.

£ s. d. £ s. d. £ 8 . d. £ 8. d. £ s. d. £ s. d. £ s. rl .

1920 .. 22 5 5 11 4 5 9 8 5 33 18 0 28 l 0 24 1 lO 18 17 0

1927 .. 31 1· 0 19 14 7 13 8 0 52 17 6 35 18 2 28 lO 7 27 11 2

Increase .. 8 15 7 810 2 3 19 7 18 19 6 7 17 2 4 8 9 8 14 2

There is an element of approximation in the figures from which this table has been constructed, but it is not sufficient to impair the general conclusion that the cost of development and the rate of expenditure have been comparatively much greater in South Australia than in the other States.

34. The pastoral and agricultural country of South Australia is, to a large extent, situated in low average rainfall country, over a considerable portion of which the soil is of too porous a nature to permit of the storage of adequate water supplies. It has been found necessary, therefore, to lay very long lengths of mains fTom impounding

reservoirs to suppiy water for domestic and .stock purposes, but, unfortunately, these undertakings have not given direct economic results. An example of vigorous develop­ ment of this nature is that undertaken by the State on the Eyre Peninsula. generally known as the West Coast country. The construction of over 300 miles of railway in 1913 and 1914 on this peninsula led to the opening up of t.he country to settlement, but the

waterless condition of the area made the problem of water supplysoseriousthataRoya1 Commission, appointed in 1916, after making exhaustive enguiTies, recommended the construction of the Tocl River Water Scheme, upon which the t otal sum of £2,480,000 was spent to 30th June, 1928. We were advised that over £6,000,000 has been spent from loan upon development of this area of the State. During last financial year, while the railways Lll this area showed a loss of £72,157, the loss on the waterworks was £109,638. It was pointed out by the State Hydraulic Engineer that most of the water schemes were in an unsatisfactory financial position, and t he Auditor-General's · report shows that Consolidated Revenue has to bear a heavy annual charge on country waterworks, amounting at present to nearly £300,000 per annum.

35. Under the Murray River Agreement in 1914, the Commonwealth Government undertook to contribute £1,000,000 and the States of New South Wales, Victoria and South Australia £1,221,000 each of the then estimated cost of £4,663,000 In 1923, an amended agreement was adopted, the Commonwealth and the three States

concerned undertaking to share the cost in equal proportions. The latest estimate of the cost is in the vicinity of £14,000,000, while the total expenditure to date is approximately £6,500,000. The . contribution of South Australia, when completed, will be £3,500,000. She now has nine locks and weirs, valued at £3,250, 000, and will have the benefit of twenty-four other locks, in addition to any advantage she may derive from the Hume Reservoir. The whole of the interest on the capital outlay by Routh Australia will have to be met from consolidated revenue. South Australia, in this respect, is under a disability when compared her colleague States, as she contributes equally with them to the interest and capital charges, although her population and resources are much smaller than those of New South Wales and Victoria. It is true, of course, that South Australia freely entered into the ag:r;eement to pay an equal share of the cost, but at that time no one could foresee the tremendous obligations that she would

21

be called upon to assume. An indication of the added burden of the cost of this scheme is furnish8d by the estimated cost of the Hume Reservoir which was increased as follows:- ·

Year . Estimate.

£

1914 1,353,000

1919 1,639,000

1923 2,937,000

1926 4,572,000

1928 5,872,637

while the estimated total cost of the whole scheme has increased from £4,663,000 to £14,000,000.

Here, then, is a clear case of hardship suffered by South Australia as the rPsult of a State comparatively small i:n population and resources entering into 3 11 agreement on equal terms with two States more richly endowed. This, however, is clearly not a disability imposed by Federation. It is suggested that this matter might be dealt with separately and considered at a conference of the Premiers and Treasurers of the three States and the Prime Minist er and Treasurer of the Commonwea:ltb, with a view to making some discriminating concessions to South Australia which might temporarily relieve that State of part . of the interest liability.

\Vhen the lock at Mildura and the storage works at Lake Victoria are completed, South Australia will have nearly 600 miles of river navigable all the year round, and, with more intense and varied development along the river frontages of products that are readily marketable at profitable prices, the · benefits .to the State from the improvement of navigation sb ould be very marked. Development of this nature on

the Murray, if practicable, would naturally give rise to the question of the provision of a port at the mouth of the river. vVe have not the necessary expert knowledge to express an opinion whether such a scheme is feasible, but we suggest that thorough investigation of this proposition might pave the way for granting assistance under the Development and Migration Scheme or otherwise.

2221

36. Since 1901 the population of South Australia has grown from 354,657 to Criticism of 577,746, an increase of 223,089, and witnesses have stated that this increase is largely due, directly or indirectly, to loan expenditure on works of a developmental nature \Vhile it is admitted that much of this · expenditure has not been immediately reproductive, it is claimed by the offioial representatives that the justification for it lies in the fact that no progressive State could leave more than half of its territory in a condition of comparative undevelopment. The point is also made that the

Commonwealth Government has encouraged this policy by making available cheap money for developmental purposes. There is, no doubt, some point in these arguments, but the wisdom of this huge expenditure in the circumstances is, however, open to the most serious criticism. In the last nine years the large sum of £11,500,000 of loan moneys has been spent, being £2,000,000 more than the total loan developmental

expenditure during the whole previous history of the State. This expenditure during the nine years mentioned represents an increase of 121 per cent. The increase of population during the same period was 23 per cent. Add to this the fact that large areas of this land prepared for settlement at a cost of approximately £1,500,000 have not yet been occupied, and the seriousness of the position becomes obvious.

In the present condition of the fin ances of South Australia any schemes for the further development of unoccupied areas should be very closely investigated, and expenditure should be. rigorously confined to those which can be proved to he essential.

TAXATION.

37. This uneconomic expenditure with its heavy borrowings and poor returns was bound to necessitate increased [taxation sooner or later. Witness after witness taxatiOn. laid emphasis on the high rate of taxation ruling in South Australia, and claimed .that it was now the highest of any State in the Commonwealth. It was submitted

in evidence that South Australia in past years was, on an average, the third

1.ighest taxed State, but an examination of taxation for the years immediately prior to Federation (vide Appendix ,q indicates that in South Australia it was higher

.I

Taxation by lo·.;al authorities included.

22

than ·in New South Wales and Victoria, and that the retrogression from fourth to third place was entirely due to the fact that, after Federation, direct taxation in Western Australia was reduced by more than £5 per head of population. The high rate per head of population in South Australia in the years immediately prior to Federation wasnot again reached until the year I9I 8-I9. In the ta:-bles submitted in evidence showing the direct taxation per head of population, it cannot be said that, for later years, the figures are altogether comparable, since motor taxation is excluded wholly or in part from the revenue of some of the States. The figures, including and excluding motor taxation, are:-

State.

New South Wales Victoria ..

Queensland South Australia Western Australia Tasmania

Total

New South W Victoria . .

Queensland South Australia Western Australia Tasmania

..

. .

. .

. .

. .

. .

..

..

. .

..

Excluding Motor Taxation.

Amount. fer capita.

1926-27.

£ £ s. d.

11,450,727 4 17 4

5,607,033. 3 5 6

4,502,340 5 2 1

2,509,565 4 8 8

1,211,343 3 4 0

1,187,816 5 10 8

26,468,824 4 6 9

1927-28.

10,725,257 4 9 4

6,346,613 3 12 11

4,978,083 5 10 9

3;187,021 5 10 8

1,296,358 3 6 1

1,057,711 4 18 0

Including Motor Taxation.

Amount. Per capita.

£ £ s. d.

12,627,824 5 7 9

6,411,936 3 14 11

4,756,119 5 7 10

2,798,292 4 18 10

1,292,333 3 8 3

1,229,823 5 14 6

29,116,327 4 15 5

12,224,963 . 5

1 10

7,257,428 4 3 4

5,355,304 5 19 2

3,707,392 6 8

9

1,397,398 311 3

1,134,528 5 5 1

Total .. . . 27,591,043 4 8 8 31,077,013 4 19 10

38. In estimating the severity of taxation, care should be taken to include taxation by Local _ Authorities ; estimates of the relative burdens in the

several States may be misleading. Municipal rates levied by Local Authorities in 1926-27 were:-Total. Amount per capita.

£ £ s. d.

New South Wales 4,940,74I 2 2 I

Victoria 4,9I7,I60 2 I7 5

Queensland 2,444,006 2 I5 5

South Australia 820,I29 I 9 0

Western Australia 460,562 1 4 4

Tasmania · 479,273 2 4 8

All States I4,06I,87I 2 6 I

----

The comparatively small amount per head of population payable in South Australia is doubtless due to the fact that the Government gives much greater assistance to the rnunicipalities than in other States. It has been stated that, owing to the difficulty of raising increased taxation, the South Australian Governn1ent has been forced to raise additional revenue by what is virtually a tax on the users of the metropolitan waterworks and sewers. The water supply and sewerage systems in the State are constructed and maintained by the Public vVorks Department, and the greater portion of the heavy losses on country waterworks has to be borne by residents of the metropolitan area. In other States, these undertakings are largely controlled by boards, trusts or municipal authorities, and the residents of the districts contribute a greater proportion of the cost of maintaining such utilities. If we assume that no alter_ ation

23

in the per capjta of taxation by_ Local occurs in the year 1927-28,

the total of direct taxation, mo t.or taxation and municipal rates in the last two years would be :_:___ ·

I926-27. I927-28

£ s. d. £ s. d.

New South Wales 7 9 10 7 3 11

Victoria 6 12 4 7 0 9

Queensland 8 3 3 8 14 7

South Australia 6 7 10 7 17 9

Western Australia 4 12 7 4 15 7

Tasmania 7 19 2 7 9 9

All States 7 1 6 7 5 11

2223

39. In these last tables, we have stated taxation- in each State on a per capita Application basis. In measuring the incidence of taxation, however, this yield is not the only factor to be applied. The value of the total production in the several States must test. also be taken into consideration, involving the ·application of the test of '.'unit of

production", i.e., for a particular year expressed as a percentage of the total production of the previous year. The value of such a table is that it measures the t axation in each State in relation to its production, and inferentially indicates its capacity to bear the t ax. This system has obvious defects, but it provides a general guide on

the question under consideration, and is perhaps more reliable than the per capita test taken by itself. These percentages are shown in detail jn Appendix 3. Grouping as under in periods of years, the averages of the several States are :- ·

Periods. New South Victoria. Queensland. South Western Tasmania . .All Wa les . Australia. Australia. -

0 1

/ O· % % % % % o /o

1902-3 to 1909-10 . . 2.42 2. 85 2. 64: 3.37 1.82 3. 87 2 .64:

1910-11 to 1915-16 2.78 3.25 3.00 3.49 2.39 5.35 3.05

1916-17 to 1921-22 4: . 66 3.67 6.3Q 4:.27 3.47 6.42 4:.57

1922- 23 to 1927-28 5.89 4.80 7.40 6.77 4:.89 9.95 5. 93

These figures show that in South Australia taxation was higher than in all States except Tasmania up to the year 1915-16. During the next six years, the average in South Australia was lower than that for all States, heavy increases in taxation in New South Wales and Queensland keeping those States with Tasmania the highest in t he

Commonwealth. Fron1 1922-23, the average in South Australia has increased considerably.

PRIMARY PRODUCTION.

40. Wheat, wool and wine are the chief primary products of South Australia. Progress tn . In the production of wheat South Australia has shown marked improvement. Since sout h Austraha. 1900 the area of wheat harvested per annum has increased by about 50 percent., and the quantity of wheat produced per annum by more than 130 per cent. The average yield per acre is now practically on a par with the Australian average. In the wine industry South Australia stands out above t he other States, manufacturing nearly 80 per cent. of the total production of wine in Australia. Wool production in recent years has shown marked progress. Official statistics regarding primary production are shown in

Appendices 1 and 5 to 10 at the end of this Report.

41. It is generally claimed. that South Australia and Western Australia are largely dependent on primary industries . . This is undoubtedly true, but the sa1ne depressiOn . claim could be made in respect of each of the States. In the two States mentioned, however, agricultural production represents a much greater proportion of the total production than it does in any other State.

ThrouQ'hout the world there is a general atmosphere o£ depression in agricultural and this constitutes one of the most serious economic problems of the

present day. From almost every country, whether under Federal or a ·unitary form

J ncreaserl cost of production.

Progress 111 the face of n!ttural diffi culties.

Value added in manufacture.'

24

of Governn1ent, comes disquieting evidence of the shrinkage in the income of the farmer, the inadequate return for his labour and the additional burden which he is called upon .to bear; so that his present economic position cannot be ascribed to the fact that in South Australia he is a citizen of a Federation of States. Some other

explanation of this phenomenon must be sought. We are inclined to the belief that the explanation will be found in-- . (a) the lack ·of harmony between the increase in the cost of production and the increase in the price of agricultural commodities ;

(b) the high value of land which changed hands a few years ago (1918-1924), together with the increase in the rate of interest. If this be the case, then the cause lies deeper than a fonn of Government. We have already indicated by means of official statistics the variation in price

levels showing how prices reached a maximum in 1920-21, fell rapidly and again rose to a peak in 1924-25, only to fall again in each of the last three years. In the course of evidence, it was stated that, whereas the cost of manufactured goods increased by 95 per cent. since 1911, the price realized for crops increased by only about 40 per cent. ; that between 1913 and 1925 the increases in cost of purchased In·aterial and labour required in farm production were 74 per cent., 41 per cent. and 95 per cent., and that from the viewpoint of the man who started farming since the

war, the ·costs of growing wheat are 22s. to 25s. an. acre in excess of the 1913 costs. In 1913, the average value of wheat exported was 3s. 9d. per bushel, in 1924-25 the price was 6s. Sd., but at present it is 4s. 8cl., the same as the low-level mark of 1923-24. If the 1nargin of profit to the farmer continues to remain so low, the problem for South Australia will assume serious dimensions. The main burden on the farmer who bought land in the years succeeding the end of the war is the increase in mortgage and other charges over pre-war years which accompanied the upward movement in land values, together with the increased rate charged on overdrafts and other forms of credit. Up to the present any appreciation in returns due to greater efficiency has not been

sufficient to lighten these burdens. ·

SECONDARY INDUSTRIES.

42. Tt has already been made clear that South Australia unfortunately is not a State rich in natural resources. It has been denied the benefits of rich deposits of coal which would pro-vide the State with a means of -cheap power to assist in the establishment of manufacturing industries. In spite of the lack of minerals, the State has 1nade very considerable progress in these industries. Comparable figures furnished by the Commonwealth Statistician, in respect of the number of factory einployees per

1,000 of mean population, show that South Australia occupied second position amongst the States until 1912 inclusive. For the three years, 1913, 1914 and 1915, in common with most of the other States, its ratio declined to a minimu1n in 1915, and thereafter . increased continuously up to the last date for which particulars are available. Since

the war the progress· in the case of this State has oeen considerable.

The Inost important item in the statistics of factories is probably that of the value added in the process of manufacture, that is, the difference between the aggregate value of output on the one hand and the aggregate value of Taw m_ aterials and fuel on the other. As will be seen from Appendix 12 the progress up to 1913 con1pared favourably with that of other States. The drought of however, had a serious on

industry generally, and up to 1917 the manufacturing industry in South Australia was at a standstill, if it did not recede. Thereafter conditions improved, and during; the last decade marked progress has been made despite the disabilities mentioned. To some considerable extent this develop1nent in secondary industries has been assisted by loan expenditure on . the railway rehabilitation and developn1ental schemes. . A nulnber of the witnesses insisted that since the last period for which official statistics are available, as shovvn by Appendices 11 and 12, there has been a considerable falling off in the output of the secondary in\)ustries throughout their State. This they attribJite largely to the completion of the railway rehabilitation scheme on which a large amount of loan rnoneys had been expended for some · years and to general business depression. Although they were unable to quote official statistics regarding production in support of this contention, it :ts well known that the factors mentioned do exist. In this connexion it is noted that the rate of unemployn1ent increased from 5. 6 per cent. to 16.1 per cent. in the period of twelve m-onths 30th J U.ne, 1928.

25 2225

THE CUSTOlVIS TARIFF.

43. In the course of our investigation, the subject of the Tariff o-ave rise to n1uch Arguments discussion as one of the principal disabilities arisjng from Federation. The following is a · b ' f £ th · t f d Australian ne summary o e vanous argumen s put orwar :- · witnesses.

(1) Since the commencement of the war, there has been an almost continuous increase of the Customs Tariff, greatly augmenting the revenues of the Commonwealth Government, but at the same time increasing the cost of all services operated ·by the State Government. (2) South Australia is mainly an agricultural community with certain other allied. primary

enterprises, and the effect of the Commonwealth policy has been to maintain costs of production at an artificially high level without in any way adding to the value of the commodities produced. As a result of such action, the margin of profit in the industries referred to has been reduced and, in comparison with certain other States, South Australia

has suffered a loss in its taxable capacity. (3) If South Australia had her own tariff, her position ·would, according to the evidence, have been better in relation to State t axation. The operation of a State Tariff would also have been definitely better so far as the State is concerned, for the reason that

"non-reproductive" industries, even if not justifiable in themselves, would have been established and the State would have received whatever benefits arose from them. ('i) The official committee presenting the case for South Ai1stralia explained that the term " non-reproductive " is used by them to describe industries, whether primary or

secondary, in which the cost of production is greater than the unprotected price of the goods produced. (5) When "non-reproductive" secondary industries are established, the loss is distributed ··over every individual in the Commonwealth by means of higher prices, and the industry

becomes a source of profit to the State in which it is established, but when a

"non-reproductive" primary industry is established by means of irrigation or the building pf waterworks or the provision of railways, the loss is borne by the State undertaking the development, and is spread only over the individuals of that State. (6) Whereas in the case of Australia, some States are concentrating on the development of

" .non-reproductive" primary industries and others on the development of "non-reproductive" secxmdary industries, a wholly inequitable system must inevitably arise-and has indeed arisen. The inequity of the present arrangement is not due to the soundness or otherwise of the schemes for deve·Jopment. (7) Many of our secondary industries will be a burden to the Commonwealth for many years.

Many of the schemes for primary development will also be a burden for many years to the States undertaking them. People are prepared to take a long view of such matters and to hope that the population of Australia will some day be sufficient to make primary and secondary industries profitable without the aid of bounties or tariffs. (8) It is not denied that South . Australia had made some gains from Federation. Some

industries have been established because of interstate free trade and the consequent wider market, but it is claimed that New South Wales and Victoria have reaped the major portion of the benefit from all these changes. (9) By reason of the increased price of sugar as a result of the embargo on its importation,

the contribution of South Australia to the Queensland sugar industry is not less than £500,000 per annum, while £20,000 is paid to that State above the value at which pineapples can be purchased overseas. It is estimated that under the Patterson Butter Scheme the Eastern States charge South Australia £56,000 a year more than they would

charge the people of England, Java or China for a similar quantity of butter. Owing to the increase in the import duty recently granted, it is now proposed to raise the margin so that South Australia will contribute £90,000 next autumn. The tariff on ·matches costs South Australia approximately £27,000 per annum. conditions

make it practically impossible to make good matches in South Australia. The fostering of the wrapping paper industry, for which South Australia has not the facilities, is causing £10,000 a year to be taken out of the State in high duties and higher .. prices for the Australian-produced paper. The few items mentioned have reached a total of nearly £650,000 a year, contributed directly by South Australian consumers to the support

of industries which cannot be carried on in the State. (10) Oregon pine imported from the United States of America, and flooring boards and deals imported from Norway and Sweden, all of which are necessary for building construction, and which constitute the major portion of timber used in an average dwelling-house;

cannot be adequately replaced by Australian-grown timber. The abnormally high tariff on these timbers has the effect of imposing ah additional burden . on South Australia as compared with the other five States, due to the fact that the requirements of the latter are partially met by locally-grown timber. (11) The high tariff on drapery and softgoods is of immense benefit to the factories

established in the Eastern States. South Australia, being unable to establish a reasonable proportion of such factories, cannot derive an adequate benefit from this tariff to compensate for the burdens imposed to ·benefit the factories of Vic.toria and New South Wales. (12) Experience has shown conclusively that the local manufacturers in nearly every case take

advantage of the margin of protection afforded by the tariff, and they are compelled to do so, because the unions, as soon as they see that there is any margin, go straight to the Arbitration Court for an increase in wages.

Evlrlenc.eof C'.ommonwealth otlic.!a:s.

Effect of Tariff.

.(13) The effect of the tariff and arbitration awards has been to increase prices and wages and thus to make the cost of developmental work greater. Some of the money borrowed by the State has been used to pay Customs duties, which the Commonwealth has treated as ordinary revenue. As a consequence, the cost of such work has been still further increased.

_ _ 44. On the other hand, the Secretary to the Commonwealth Treasury (Mr. J. T. Heathershaw) and the Commonwealth Statistician (Mr. C. H. Wickens) have briefly summarized contrary arguments somewhat as follows:- _

(1) It seems to have been considered that a Commonwealth protective policy has had the effect of increasing the secondary industries of Victoria and New South Wales and has thrown a load on South Australian primary producers. Supposing that were admitted, it does not necessarily follow that the citizens of Victoria and New South Wales are any better able to bear the burden which would be imposed in raising a subsidy for South Australia than would the citizens of South Australia itself. (2) If secondary industries cannot function in South Australia at the present time, because

- their cost of production is greater than in two of the other States, surely the primary producers of South Australia would be paying more under a State Tariff for those manufactured goods required by them than they now pay under a Federal Tariff. Consequently the Federal Tariff, so far from having penalized the primary producers, has rather benefited them by preventing them from being taxed more heavily under a purely State Tariff. (3) Official statistics show progressive increases in the number of factory employees and the

value added in process of manufacture. ( 4) The phenomenal progress in \V estern Australia under Federation rather disposes of the charge that Federal activities have resulted in a serious burden to primary industries. (5) Higher costs have probably been imposed on primary industries by the Tar-iff, but it does

not follow that such imposts are inequitable since the primary producer has no inalienable right to dispose in an unrestricted manner of the primary resources of the country for his private profit irrespective of the general interests of the community. (6) The burden of the war on Australia is apt to be overlooked and disabilities which are urged

as being due to Federation are really due to the war. (7) A considerable portion of the Customs revenue is really taxation without any protective incidence. Last year the Customsand Excise Revenue was approximately £41,500,000. Of that amount, it is estimated that £26,500,000 was collected from revenue and luxury

duties. The whole of the revenue is applied to meeting the inescapable obligations of the Commonwealth. War and repatriation services cost £30,000,000 a year, defence £5,000,000, old-age pensions £10,000,000, payments to States £11,000,000, or a total of £56,000,000, equal to about £9 per head of population. These obligations must be met out of taxation. If the protective clauses of the tariff were not in existence, then it follows that the £15,000,000 derived from protective duties would have to be raised in another way. -45. After the most careful consideration of this evidence, our conclusion is that inequalities have arisen in the incidence of the general tariff policy of the Commonwealth.

These inequalities arise, however, as we have already pointed out, from the natural conditions of the several States, each of which differs from the others in area, fertility, geographical position, climatic conditions and natural endowments generally. They are, however, inseparable from any policy aiming at the creation and maintenance of secondary industries over a large continent. It needs no elaborate statistics to prove that those States whose industries are primary and agricultural, and whose staple products depend largely upon the price ruling in the world's markets, must feel the burden of this general protective policy more acutely. South Australia fulfils these conditions more fully perhaps than any other State, an_ d feels the burden correspondingly.

This inequality in the incidence of a tariff is inherent in all Federations. As far back as 100 years, the Southern States of An1erica, representing the primary producing State.s, put forward petitions to the !ederal for special

consideration w1th regard to finance, and substituted arguments s1m1lar to those put forward by the South Australian Government. In a petition to Congress in 1831, these words appea-r :- ·

"The Southern States have already confined themselves almost exclusively to the cultivation of the rich products of their climate. This is the only advantage they enjoy, and they owe it to nature. As they make but few, they consume a much greater proportion of manufactured articles imported from other States or other countries. That system, therefore, that enhances

beyond measure the price of those objects of necessary consumption, operates most unequally and unjustly upon them. They are forbidden to supply themselves on the cheapest terms, consistent with the revenue necessary for the exigencies of Government. As the greatest consumers, they must pay a greater share of the duties requisite to defray the necessary national expenditure, but they are compelled to pay the -enhanced price occasioned by the protecting sytem. That system cannot be extended to them. They find in it no indemnity, no compensation for the injury which it inflicts upon them."

27

one of the witnesses who furnished this quotation aptly stated, this is a very interesting

Instance in support of the general claim that a preponderantly prin1ary producing State in which enjoys a high protective tariff must in many respects be at a·

decided disadvantage. · . .

. the imposed on such a wit? degree of accuracy is,

In our opinion, ImpractiCaole, except by those having an Intimate working knowledge of the tariff. An endeavour has been made by Professors J. B. Brigden, M.A. (Oxon), and L. F. Giblin, B.A. (Cantab.), of Tasmania, and by Mr. L. G. Melville, B .Ec.,.F.I.A., State Actuary of South Australia, to arrive at a solution of this difficult problem, but we are unable to accept their conclusions. l\iuch more work in the same field will, we think, be necessary before any reliable working hypothesis can be firmly extablished. Had this information been available our task would have been considerably lightened.

In the official case itself, it was stated that it is not possible under our fiscal system to determine the loss it imposes on each State. ·

·ARBITRATION.

2227

46. The Federal Arbitration Court appeared to · share with the Tariff the Fenerni for · many of the present day disabilities of Sout h Australia and rnore awards.

often than not the two were joined in the minds of the witnesses as the major factors in the troubles and difficulties which beset the State. The operation of these two factors, to the witnesses, constitutes a "vicious circle" which results in

uneconomic production and high taxation. On the other hand, Mr. Wickens asserts that their troubles do not arise altogether frmn these ·causes. He is quite emphatic that the increase in prices started twenty years ago; was dile · largely to the increased production of gold, and would probably have continued, though not so irregularly if there had been no war, while labour costs would have risen had there been no Arbitration Courts, since the tendency is for wages to follow prices.

It is freely admitted that the Arbitration Courts, both Federal and State, have Power and played an important part in the increase of wages and other more favourable conditions of employment. At the saine time the influence and power of industralized unionism cannot be overlooked. To this source must be traced the genesis of the Courts themselves. It was owing to the insistent demand of organized labour, both in the

private and .Political spheres, that the Courts came into existence. At the moment there is a much confused public opinion on the question of the utility and continuance of the Courts as theynow function. In Australia a very large section of the employers, and an equally large section of the employees are demanding their abolition. On the other hand, at the National Industrial Conference held recently in New Zealand, the Employers' Federation firmly insisted that the Court of Arbitration n1ust be retained. These are deba_table matters which may well be left to others to determine. Meantime we may remark that South Australia made a full and substantial State contribution to the present Federal policy of high tariffs, Arbitration and Navigation Acts, her representatives being prominent am.ong the leaders and promoters of these Acts at the time they were enacted.

Many of the difficulties to-day in South Australia were unhesitatingly attributed controlling to the decision of the High Court with regard to State Instrumentalities. It was pointed out to us that the increases in wages on the South Aust ralian Railways since 1923 !ties. amount to £345,000 and the major portion is due t o t he awards of the F ederal Arbitration Court. When the State Arbitration Court issues an award covering 'vages and conditions affecting Government Departments: the State Parlian1ent has the inherent right to say whether it will approve or disapprove of the increased expenditure.

The contrary is the case with an award of the Federal Arbitration Court when adjudicating on State Instrumentalities. Over such an award the State Legislature can -exercise no check whatever. The Federal award must be obeyed whatever the consequences may be to the financial position of the State. Whether or not a State Arbitration Court would have imposed a similar burden is a ma;tter impossible to determine, but in any case the State itself would have been wholly responsible and the complaints on this score now constantly made would have been without foundation. The effect of the present anomalous position in which one Sovereign Authority decrees the amount to be disbursed while another Sovereign Authority is left with the obligation to find the money must, if continued, lead to still greater confusion in the finances of South Australia. This very serious position is being felt acutely by all the States, and the sooner it is cleared up between the Commonwealth and the States the better for all concerned.

Effect on cost of r.mnsport. ·

Cost of timber and coq_l.

2.8

NAVIGATION- ACT.

47. The operations of the Navigation Act caine in for much criticism. Nearly all the witnesses were united in ascribing many of their financial and economic difficulties to this cause. It was generally stated that the effect had been to increase so enormously the cost of transport as to make enterprise in many directions impossible. In addition the competition of overseas shipping has been eliminated to the great injury of many South Australian industries. It would appear, however, that in · nearly all those industries where the value of the commodities in relation to the bulk is low and the freight high, e.g., superphosphates, glass bottles, cement, linseed oil , cast-iron pipes, &c., there is a t endency for the Navigation Act, owing to the heavy charges (and

wharfage rates in South Australia), to encourage the establishment of such industries or branch industries of at least sufficient 1nagnitude to supply local requiren1ents. Iron and steel are an exception, as these require an enormous expenditure on plant, Inachinery, &c ., and are likely to concentrate in few centres. On the other hand, where the value of the article in relation to the bulk is high, e.g., boots, silk stockings,

hosiery, tweeds, &c ., the tendency is towards production where facilities and population are greatest. In South Australia, in the latter case, the effect has been the loss of established industries or their deterioration to the level of repair shops, while in the former the industries are expanding.

48. Two of the principal natural disabilities of South Australia are the lack of _ comn1ercial deposits of black coal and the absence of forest areas from which suitable tin1bers are obtainable. In connexion with these necessary articles amongst others, the Navigation Act -has undoubtedly placed South Australia at a great disadvantage. Freights have advanced in accordance with the increases in the price of timber and coal and the rates of wages granted by the Arbitration Court. In 1914 the average cost of coal to the South Australian Railways was 19s. 3d. per last year t he

cost was £2 4s. IOd. During the year 1926- 27 the average cost of coal tothe R ailways in the Comn1onwealth ,:vas:- ·

£ s. d.

New South ·t,Vales 0 18 3

Victoria 1 8 1

Queensland 0 18 11

South Austratia 2 2 1

Western Australia . 0 19 6

Tas1nania 1 f} 5

- - ---

All States l 2 4-

Federal 2 7 l l

Commonwealth 1 2 ,..., I

The range in the average cost per ton fr on1 18s. 3d. in New South Wales t o £2 7s. 1ld per t on for coal used on the Federal railways is attributable to the

comparatively low haulage expenses incurred in the coal-producing States, and the high cost of freights to the other States largely attributable to the Navigation Act. vVith regard to timber, figures were produced to prove that the cost of transport from Sydney and Fremantle was much higher t han from Arnerica or Sweden, and that the tariff on i1nported timbers was a serious factor in adding to the cost of building construction. These · increased costs on ti1nber and coal n1ake for South Australia a position of great hardship and accentuate the difficulties which a paucity of natural resources added to her geographical position imposes. In our opinion, the effect of the operation of the Navigation Act is such as to entitle South Australia to some relief.

Since we commenced our enquiry, the Commonwealth Government has announced its intention to repeal the Coastal Clauses of the ·Navigation Act.

THE ROADS POLICY.

::1ompeUticn of 49. The question of transport is ·rightly regarded in every country of the world

rr.otor t ransport . bl d d . h f . 't t tl f d 't If

"1nRnilways. as a maJor pro em, an unng t e course o our enqurry 1 · cons an y orce 1 se on

our attention. The railways of every country in the world are feeling more and rnore the effects of the competition of road transport. We found the widest difference of opinion on such n1atters as the construction of roads and the question of finance involved in this i1nportant proble1n . Much soreness exists in South Australia over the petrol tax decision, as well as the conditions imposed by the Federal Government in the grant now made by the Con1monwealth to the State. ·

29 2229

. 50. Generally speaking, it n1ay be said that this question follows in the Cominon- Grant.s 1.n ot'>et wealth much the san1e course as in other Federations. In the United States of America Federations. there are great controversies over the grants fro1n time to tiine by the National Governinent to the States. As one writer has put it :-

"The right of the Federal Govermnent to give to the States land frmn the Federal Domain and the money from the Federal Treasury has never been seriously questioned. . . . . For three-quarters of a century -congress merely stipulated that money derived frmn the sale of lands it gave

should be devot.ed to public schools or or something of the sort."

Duri:r:g the last eight years the following ainounts have been paid as subventions from the United States Federal Treasury to the several States:-1920-21 1921-22

1922-23 1923-24 1924-25 1925-26 1926---,27 1927-28

£

18,551,353 26,331,618 22,918,398 26,270,218 30,225,927 29,049,046 29,622,756 28,405,642

Of these amounts, nearly 60 per cent. was for the co-operative construction of rural post roads. Of the £28,405,642 contributed in 1927-28, highway construction alone represents the sun1 of £16,574,817. The percentage of the cost of highways which the Federal Government in America provides varies with the population and area on n1uch the same basis as in Australia. That Government provides 50

per cent. of the cost up to £3,000 per n1ile, but certain exceptions rnade in the case of States in which more than 5 per cent. of the land area is :unappropriated public land' increase the proportion payable by the American Federal Treasury. In Nevada, for instance, the proportion reaches 86 per cent. lVIuch controversy proceeds there as

here over the conditions in1posed and as to the fairness and efficiency with which these funds are administered. ·

51. On the whole we are satisfied that good service has 'bee-n rendered to the concession in St ates by the authorities administering the Federal Aid Roads Act and by the wise Roads Grant. and sympathetic consideration manifested toward the different States and their varying conditions. vVhile we do not criticize the action of the Federal Government, we think some concession should be made in the conditions of the South Australian grant. In the present financial position of that State the Federal Government might well refrain from enforcing the condition _ which requires her to raise, in addition to her already large expenditure an extra· £171,000, in order to receive the Comn1onwealth grant.

52. Next to the land, an efficient system of transportation is at least equal in Loss through ilnportance to any other factor in the production of wealth from what are known as the primary industries, and, for other than very limited distances, the only practicable system of mass transportation is that provided by the railways. In this era of progress,

road transportation is becmning more and more a necessity, and if the con1munity is able and willing to pay for it, there is no good reason why it should not be Inaintained·, but it is beyond question that before all others, the indispensable service-the railway service-must be maintained, and equally it is beyond question that that service Inust

be paid for . Experts in the older countries of. the world, w the pro blen1_has reached a much more advanced stage, and where 1nore rehable data has, In consequence, been collated, unhesitatingly declare that the railway is as necessary to a con1munity to-day as it was in the past, and will be in the future. It still is the only rneans of mass transportation,

and is likely to remain so for an indefinite period. The necessity to avoid econo1nic waste and to protect the interests of the railways as an essential means of transport has been recognized in other countries where the railways are not State-owned. The increased mileage of good roads now being constructed in the various States has had the effect of encouraging the use of the motor for passengers and freight, and it is quite apparent that in all States the railway as.a consequence.

In South Australia, the development of road transport IS suffiCiently senous to prevent any increase in the present freight traffic of the to .. a. decrease .fron1

year to year in the passenger traffic. An approximate oy .witnesses p_laced the loss between £200,000 and . £300,000 per annun1. · In VIctoria, the Railway

30

Commissioners estimate the loss at £946,000 per annum. 'l'hat the position has been realized is indicated by the passing of the Motor Transport Control Act by the South Australian Parliament in 1927, by means of which the rates to be charged for road transport and the scale of passenger fares have been fixed with the definite purpose of protecting the interests of the railways.

53. It still seems very probable that the competition is not on a fair and equal

basis and that the railways are working at a disadvantage in being compelled to carry the full interest on all capital expenditure, whereas motor road transport is not responsible for its just share of road construction and maintenance. Among the many suggestions that have been made for overcoming these difficulties, it has been submitted that a nearer approach to equality of contribution may be effected by-

A d vantage• enumerated.

(a) increasing the Petrol Tax and returning the amount so received to the States in the form of a Federal subsidy; or (b) by an increase of taxation on all classes of road vehicles imposed by the States themselves.

Motor taxation levied in South Australia during· last financial year represented ISs. per head of population, and on this basis is greater than in any other State of the Commonwealth. We are not in a position to decide what additional burden should be imposed on motor traffic to make the conditions of competition equivalent, as this would require an expert scientific examination by railways and roads authorities. Furthermore, we do not feel called upon to express an opinion as to which of the methods suggested above is preferable.

FEDERATION AND SOUTH AU STRALIA. 54. In any fair consideration of the position of a State under Federation, the advantages as. well as the disadvantages derived from the Federal connection should lind a place.

The advantages which Federation has conferred on South Australia may be summarized as follows:-(a) The total cost of the Northern Tenitory to the Commonwealth is approximately £10,000,000 to date. This includes the indebtedness

amounting to £3,931,086 taken over from South Australia at the date of transfer lst January, 1911.

(b) The Central Australia Railvmy from Port Augusta has involved a total expenditure of nearly £6,000,000. Included in this amount are losses since 1st J anuary, l9ll, t otalling over £2,000,000. Loan expenditure for railway construction in North and Central Australia for the current financial year is estimated aJG £792,000. (c) The capital cost of the Trans-Australian (Kalgoorlie-Port Augusta)

railway is £7,724,525. Dming the last seven years the total loss has been almost £1,000,000 and, as four-sevenths of the line is situated in South Australia, that State may be said to derive very substantial benefits. Among such benefits are the following:-

(1) The country for 200 miles west of Port Augusta now carries an additional 300,000 sheep.

(2) It has settled 800 railway employees in South Australia, which, including their dependants, represents at least 2,000 souls. ·

(3) It has converted Port Augusta from a decadent village into a thriving township.

(4) On account of this railway, large sums have been, and are still being, spent in South Australia on materials, stores and wages.

(5) The mining township of has been made easy of

access.

31

( o) 8alt and sandalwood production along the line has been made possible, the latter being a source of considerable revenue to the State. (7) State railway revenues and harbour dues have benefited.

(8 ) In the opinion of the Commonwealth Railways Commissioner, had South Australia not delayed in throwing open the country for settlement, there would have been more progress . (d ) Under an agreement bet ween the. Commonwealth and the Stat e of

South Australia, dated 18th September, 1925, the Commonwealth will bear the cost of:-(1 ) The construction of a railway from Port Augusta to Red Hill, at an estimated cost . of £735,000 , to which is t o be

added for rolling stock £104 ,250. (2) The laying of a thrrd rail on the existing railway from Red Hill to Adelaide, at an estimated cost of £380 ,000. (e) On the ratification of the financial agreement the Commonwealth

Government will relieve the States of an indebtedness of £5 000 000 in respect of soldier set tlement loans, and of this amount the Australian proportion will be £567 ,000. (f) ·under the River Murray Waters Agreement, the Commonwealth

Government has undertaken to share equally with the States of New South Wales, Victoria, and South Australia in the cost of the construction of thirty-three locks and weirs and the Hume Reservoir. The estimated Commonwealth contribution to this scheme is £3,500,000 (g) Bounties have been granted by the Commonwealth to many industries,

and in the wine and sulphur industries, South Australia has benefited to the extent of £845,139 and £78,792, respectively. Of the total bounties paid in Australia within the last four years, South Australia has received 36 per cent., whereas the population of the State is only 9 . 2 per cent. of that of the Commonwealth. (h) Under the provisions of the £34,000,000 Migration Agreement, the

following allocation has been made to assist works in progress in South Australia :-Tod River Reticulation Water Conservation on West Coast

Afforestation ..

£

500,000 80,000 358,250

Total 938,250

(i ) Payments. totalling £48,000 have been made by the Department of Markets and Transport, either direct to the State or to the producers for herd testing, Doradillo grapes, dried friuts and citrus fruits, while South Australia has received its share of the publicity in London

by means of the heavy expenditure . of over £100,000 incurred to advertise Australian products. Advances made to growers of dried fruits total nearly £40,000, and, owing to the unsatisfactory position of this industry, relief from repayment of portion of advances has been granted in a large number of cases. (j) In other directions, such as inYalid and old-age pensions, maternity

allowances, defence, lighthouses and navigation, the Commonwealth has shouldered the burdens which must have been borne by South Australia if there had been no federation. (k) Evidence has been placed before us by the Secretary to the Commonwealth

Treasury showing the total revenue and expenditure of the Commonwealth within the last two years, and an estimate of the corresponding proportions in which South Australia contributed to that revenue and benefited by the expenditure. The net results show benefits of £491,000 and £373,000 for the financial years 1926- 27 and 1927-28, respectively . It will be apparent from the above incomplete enumeration that the benefits accruing to South Aust ralia from F ederation are of a most substantial character.

2231

Method of caleulation.

Qu11llfying factors.

32

Al\IOUNT OF GRANT.

. . 55. Whether or not these advantages are an adequate compensation for the disabilities under which the State of South Australia labours, it would he impossible to decide without a survey of the position of every other State of the Commonwealth. We observe that in both the Western Australian and Tasmanian investigations, no calculated detail of disabilities was attempted, the :reason being no doubt that such a course was impracticable. In both cases, a rough estimate was made, relying for the - n1ost part on the deficits of the State, together with . high taxation, as the basic need

and justification for -assistance.

56. \Vhile ·.such a method is neither exact nor scientific, and, further, possesses the disadvantage that the State most extravagant in its exP'enditure would present the greatest claim for assistance, there seems at this stage no better basis from which to con1mence. Due allowance has been made for such qualifying factors as the burden of taxation per head of population, taxable capacity, deficits, developmental sche1nes, natural endown1ents, areas to be administered, Federal expenditure and commitments in the State under consideration, Federal grants, . bonuses and subsidjes.

57. We have shown that in South Australia the total taxation per head of population is greater than in any other State _except Queensland. In comparison with that State, however, income tax in South Australia is much heavier oil the average 1nan earning up to £800 per annum. \Ve were much impressed. with the honest and

courageous effort that both Goven1n1ent and people are making by means of additional taxation to face the difficulties of the present situation. ·

Calculations made to esti1nate the taxable capacity of the several States indicate that up to the year 1925-26, the taxable capacity of the people was relatively high. In the follovving year, there appears to have been a set-back; while the bad season last year has had a further serious effect. For son1e years, the rate of unemployment in South Australia has been 1nuch below that of the whole Com1nonwealth, but since August, 1927, the rate has rapidly increased. This reversal of good fortune synchronizes with the full of the largely increased obligations arising from lavish loan expenditure.

58. As already poiilted out, South Australia, compared with other States, is deficient in natural resources. lVIinerals mined are few, the principal one being copper, which at present cannot be profitably vtorked. There are no supplies of black coal capable of being_ 1nined economically, and for this reason iron ore, of which there are some rich deposits, has to be ·transported to Newcastle. Forest areas are negligible,

and the average rainfall is the lowest of all the States. Spencer's Gulf practically divides the State into two parts, and the development of the western part on which so much 1noney has been spent in recent years amounts almost to the establishment of a new State. Developmental expenditure by the State !n this area is at present uneconomic, and will be for some years to co1ne.

59. From :figures compiled by the Cmnn1onwealth Treasury, it appears that the :financial operations of the Commonwealth ih South Australia have conferred substantial benefits on that State. These figures, setting out estin1ates . of the revenue and expenditure of the Comn1onwealth in the several States, would appear to indicate,

however, that throughout the whole period of Federation the benefit to South Australia has not been nearly as great as that conferred ofi Queensland, Western Australia and Tasmania. These figures, prepared from the commencement of Federation to 30th June, 1924, provide an estimated apportionment of the Commonwealth revenue and the expenditure from Consolidated Revenue in the States mentioned, and show that the expenditure has exceeded the revenue to the extent set out below:-

Queensland South Australia Vvestern Australia Tasmania

£

14,000,000 4,000,000 12,000)000 9,500,000

33

On the hand, the corresponding figures for New South -v.rr ales and VictGria indicate that the revenue . derived fron1 these States has exceeded the expenditure therein as under :-

New South \Vales Victoria

£

33,500,000 13,500,000

. The figures for the last four years are not available to us, but we know of no factors. which would seriously disturb the above conclusion.

· the last four years, the Commonwealth has materially assisted the

producers in South Australia. Most of this assistance has been rendered to the wine but within last twelve months the· bounty has been considerably reduced.

In the several financial agreements that have been made between the Commonwealth and the States, South Australia shared on the same basis as New South Wales, Victoria and and has not received- nor apparently needed until recently- any

concessions such as have been extended to Western Australia and Tasmania. Finally , South Australia in the last two years has experienced deficits of £1,050,050 and £2 74,931 , while for the current year the anticipated deficit is £618,508.

RECOMMENDATIONS .

2233

60. Taking all these factors into consideration, we recommend that a special Amount of grant of £500,000 per annum be paid by the Cornmonwealth to the State of South con ­ Australia for a period of two years.

In addition to this grant, recon1mend that· the Con1rn onwealth ·Govern1n ent should refrain during the same period from enforcing the condition under the F ederal Aid R oads Agreement, which requires South Australia t o provide 15s . for every £1 by the Commonwealth.

· During the currency . of these two years, the position should be reviewed by Revision or · the permanent Commission, the appointment of which is recommended below, or, failing this, by son1e other body appointed by the Governrnent. In making t his review, consideration should be given to-

(a) Any reduction of loan indebtedness in respect of losses on soldier land settlement or irrigation areas, which may be granted as a result of the findings of Mr . .Justice Pike. (b) Any concession with the object of relieving South Aus·bralia of part

of the interest liability on loan expenditure under the Murray River \Vaters Agreement. (c) The value to South Australia of the coneession in conneetion with the Federal Aid Roads Agreement recommended above.

61. In one respect we have to confess some disappointment. l=ternen1b ering Appointment t hat this was the third State to n1ake appeal for help to the Federal Government on the ground of alleged Federal disabilities, we had hoped to find, in the course of our enquiries, so1ne formula or principle which could be readily applied to the changes arising out of the future financial relations of the Commonwealth and the States. Although we searched diligently to this we are forced to confess that so far we

have failed to find it. In the absence of this, we are strongly of opinion that the time has come when some provision should be made for a continuous study of the financial relations of the Comn1onwealth and the States. This duty should be delegated to a small body of men, specially qualified for the purpose, who would be able time to time to inform the Comn1onwealth and the States authoritatively of the inter-actions

of their policies and financial proposals. It seems fairly certain that in the future, following the example of other Federal Governn1ents, these financial r elations will continue to change as a result of the internal ·developn1ent and prosperity of the individuaJ States as well as the legislation. The experience and knowledge acquired

by such a body should in time suggest some sound working principle or formula which could be applied with expedition to these evolutionary changes. Had the Interstate Commission been still in existence, we should have recommended this as the most suitable body to undertake this important and pressing duty. Our experience on

this Commission, added to our general points definitely to the necessity

for the revival of some such body. ·

F.2000 / 28.-3

34

OF REPORT

62. The following a brief summary of the foregoing report of vour Commissioners:-STATE FINANCE.

(1) Up to 1914 the financial position of the State was sound. Since then, the cost of government has increased rapidly but a similar rapid rise took place in every State of the Commonwealth. The increase in railway working expenses in the year 1926-27 was abnormal. .

(Paragraph 8.) ·

(2) Public· debt charges for interest, sinking fund, &c., represent a larger percentage (37 per cent.) of the expenditure from Consolidated Revenue than is the case with most of the other States. The increase in fourteen years was 242 per cent., whereas all other expenditure payable from Consolidated Revenue increased by only approximately

120 per cent. The addition to the annual inteTest charge in the last three years of .£1,077,581 is one of the main factors in the present unsatisfactory financial position. (Paragraphs 9 and 12.)

(3) Since 1913-14, deficits have occurred in nine years, but, in each case, the adverse result of the year's finances was due to causes such as climatic conditions, heavy increases in salaries and wages or excessive losses on the railways. (Paragraphs 10 to 12.)

(4) Successive South Australian Governments have adopted various methods of accounting which have had the result of presenting their financial position over a series of years in a more favorable light than the facts warranted. Amongst these were the utilization of suspense

accounts to cover expenditure properly chargeable Consolidated Revenue, inadequate provision for depreciation, unjustiflable. capitalization of interest, anrl suspension of contributions to the Sinking Fund. (Paragraph 13.) ,

(5) The failure to provide for this expenditure was another of the underlying causes of the present condition of the South Australian finances. It is of the utmost importance that there should be no grounds for a feeling of lack of confidence in the strict accuracy of governmental accounts. Rather than postpone charges against Revenue, it would have been wiser to increase taxation. (Paragraph 14.)

FINANCIAL AGREEMENTS.

( 6) 'rhe financial agreement adopted in 1909 gave the States 25s. per head of population which at that time equalled fifty per cent. of the Customs and Excise Revenue. The enormous increase in that revenue has· reduced the percentage considerably, while the value

of money has also declined. This · increase has fortunately been available to meet the continuously increasing war obligations of the Commonwealth Government and without it very serious financial embarrassment would have resulted. The unanimous confirmation of the most recent financial agreement indicates that the State Governments recognize this fact. (Paragraphs 5 and 15.)

PUBLIC DEBT.

(7) The Public Debt of the State has increased during the last nine years by £49,585,960 or 116 per cent. The total rose from £91 Os. 3d. per head of population in 1919 to £159 12s 5d. in 1928, a rate of increase far in excess of that of other States. (Paragraph 16.)

LoAN ExPENDITURE.

(8) The principal increases in loan expenditure during t.he ·last nine years were:-.

Railways .

Developmental .. Loans on Securitiea

. £

12,262,041 11,497,009 12,946,365

35

When the increase 1n the population (23 per cent.) and the steadily increasing dead-weight of interest on works of an unproductive character, which 1nust be met from taxation, are taken into consideration, this increase of £44,259,170 or 95 per cent. is seen to be excessive. During last financial year, interest paid from taxation included :-

Interest on Railways Interest on Developmental Works

£

887,605 860,485

In addition, interest mainly on soldier settlernent works arnounting to £214,969 was capitaliz;ed. After careful examination of the situation, we are satisfied that the present unsatisfactory financial position is due chiefly to losses on the railways and on works of a de'\relopn1ental character. (Paragraphs 17 to 20.)

RAILWAYS.

(9) During the first thirteen years after Federation, the working of the railways resulted in a profit. A serious drought in 1914 and the war and post-war conditions were the cause of losses in each of the next eight years. According to the Treasury figures, the losses in the two years ended 30th June, 1928, have totalled £2,070,286. A loan expenditure of £11,000,000 in the last five years included a· re-habilitation scheme which was intended to place the railways

on a sound working basis. An annual saving of not less than

£673,500 was anticipated from this schmne which was originally approved by Parliament at an estin1ated cost of £4,500,000, but in five years the working expenses have increased by £567,432, and the huge loan has added £526,000 to the annual interest bill.

The \vorking expenses showed a considerable reduction during the year ended 30th June, 1928. It. is open to question whether a modified re-habilitation scheme at a n1uch less cost would not have been n1ore in keeping with the present and prospective traffic requirem.ents.

Motor competition, adverse seasons and the operation of the Federal Arbitration Courts have had a detrimental effect, but, with the Railways Commissioner, we agree that the breaks of gauge and the isolation of the Eyre Peninsula lines, dividing the railway system into four distinct compartments is not conducive to economic results.

Unnecessary duplication and llnjustifiable construction of lines have added to the present burden. (Paragraphs 21 to 29.)

GENERAL DEVELOPMENTAL EXPENDITURE.

(10) The special disabilities of South Australia arise chiefly frorn her geographical position, her adverse natural conditions-cliinate, rainfall and natural configuration-and lack of natural resources. The consequences of its aridity have involved heavy expenditure in developmental schemes but unfortunately most of these schen1es

have proved uneconon1ical. (Paragraph 30.)

(11) The main reasons given for .expenditure were the public den1and in all the States for the settlen1ent of returned soldiers and the necessity for an early resun1ption of the increase of population by migration . . (Paragraph 31.)

( 12) Owing to the adverse condition of the finances of South Australia and the extensive losses that have occurred in soldier land settlement, further assistance by the Com1nonwealth seems necessary. This, however, is a matter alrea;dy under . inquiry by a special expert

Com1nissioner in the person of JYir. Justice Pike, who has been appointed to deal with soldier settlement in all the States.

(Paragraph 32.)

(13) In undertakings 1nainly of a develop1nental character, the total cost and the rate of expenditure have been comparatively much greater in South Australia than in the other States. (Paragraph 33.)

2235

36

(14) The low average rainfall over a large percentage of the State has necessitated heavy expenditure on country waterworks. Most ·of the water schemes are in an unsatisfactory :financial position, the annual loss being nearly £300,000. (Paragraph 34.)

(15)

(16)

( 17)

(18)

( 19)

At the ti1ne that South Australia freely entered into the Murray River Waters Agreement, she had no. knowledge of the tremendous obligations she would .be called upon to assume. When compared with her neighbouring States, she is under a disability as she contributes equally with them to the interest and capital charges,

although her population and resources are much sn1aller. This, however, is clearly not a disability imposed by Federation. A conference of the Premiers and the Treasurers of the three States and the Prime Minister and the Treasurer of the Commonwealth

might be convened for the purpose of Inaking discriminating concessions to South Australia. A thorough investigation of the proposal for additional settlement on and a port at the mouth of the Murray might pave the way for granting assistance under the Development and Migration Scheme or otherwise. (Paragraph 35.)

In the last nine years, £11,500,000 of loan n1oneys has been spent on developm.ental works, being £2,000,000 more than the total loan developmental expenditure during the whole previous history of the State. In view of the comparatively s1nall increase in population and the fact that large areas of land prepared for settlement have not yet been occupied, the wisdom of this huge expenditure is open

to criticism. (Paragraph 36.)

TAXATION.

Direct taxation in South Australia is on a. par with that of Queensland, and in these two States the amount per head of population is much higher than in the other States. Motor taxation in South Australia is the highest in the Comn1onwealth, but municipal taxation is

comparatively low. Taking all three · forms of taxation into consideration, the amount per head of population is higher than in the other States except Queensland. A comparison of taxation with the value of production affords confirmation. (Paragraphs 37 to 39.)

PRIMARY PRODUCTION.

Primary agricultural production, notably wool, wine and wheat, in South Australia has shown improvement. The cost of production has considerably increased in the last decade. (Paragraphs 40 and 41.)

SECONDARY INDUSTRIES.

In spite of lack of minerals, secondary industries have made progress. Frmn 1913 to 1917, the drought and the war had a serious effect on industry generally, but in the last ten years the improvement has been n1arked. To some considerable extent, this development has been assisted by the loan expenditure of the State. With the reduction of the rate of such expenditure in the second half of 1927, there was a rapid increase in the rate of unemployment. (Paragraph 42.)

THE CusToMs TARIFF.

(20) Inequalities have arisen in the incidence of the general tariff policy of the Commonwealth, but are due to the varying natural conditions of the several States. States, and particularly South Australia, whose industries are chiefly primary and agricultural and whose

staple products depend largely upon the price ruling in the markets, must feel the burden of a general protective policy 1nost acutely, but so far no reliable working hypothesis has been established to measure the burden with any degree of accuracy.

(Paragraphs 43 to 45.) ·

ARBITRATION.

(21) The decision of the High Court with regai·d to State Instrumentalities has led to an anomalous position, whereby one Sovereign Authority decrees the amount to be disbursed while another Sovereign Authority is left with the obligation to find the n1oney. This has

caused considerable confusion in the finances ·of South Australia. Its effect has been to impose burdens and injustices on all States, and the sooner some satisfactory is n1ade between

the Commonwealth and the States the better for all concerned. (Paragraph 46.)

(22)

NAVIG-ATION AcT .

The increased costs of ti1nber and coal due to hig·h freivht cbaro-es, • .J 0 0 largely attributable to the Navigation Act, make for South Australia, a position of great hardship and accentuate the difficulties which a paucity of natural resources irnposes. Since we c01nmenced our enquiry, the Corr1n1onwealth Government has announced its proposal to repeal the coastal clauses of the Navigation Act.

(Paragraphs 4 7 and 48.)

THE RoADS PoLICY.

(23 ) In the conditions irnposed by the Federal Aid Roads Agreen1ent, we think that sor:<1e concession could well be made to South Australia. In the present financial position of that State, the Federal Government 1night refrain from enforcing the condition which requires that an

extra · £171,000 be raised in order to receive the Cornmonwealth grant. (Paragraph 51.)

(24) The increased n1ileage of good roads now constructed has had the effect of encouraging the use of the motor for passengers and freight, and as a consequence railway revenue has suffered in all Sta tes. The railways are compelled to carry full ·interest on all

capital expenditure, whereas motor road transport is not responsible for its just share of road construction and maintenance. A nearer approach to equality of contribution may be effected by increasing the petrol t ax and returning the amount so received to the States in the .forn1 of a Federal subsidy, or by an increase of taxation on

all classes of road vehicles imposed by the States themselves. (Paragraphs 52 and 53.)

ADVANTAGES OF F EDERATION.

(25) South Australia has received undoubted advantages from Federation, which offset to smne extent the disadvantages enumerated in the Case for South Australia. (Paragraphs 54 and 55.)

AMOUNT OF GRANT.

·(26) In our opn11on South Australia is worthy of sympathetic treatment such as has already been extended to VI estern Australia and Tasmania. (Paragraphs 56 to 59.)

(27) VVe recon11nend-(a) a grant of £590, 000 per annum for two years; and (b) a 1nodification of the conditions of the Federal roads contribution; these to be subject to revision by a competent body, taking into account any relief granted in the meantime to the State in connexion with soldier settlen1ent or the Murray River scheme, and the value of the concession in the Federal Aid Roads Agreement. (Paragraph 60.)

(28) vVe recommend further the appointment of a permanent Commission to make a continuous study of the financial relations of the

Con1monwealth and the States. (Paragraph 61.)

2237

3.8

CONCLUDING REMARKS.

63 . In conclusion, we have been greatly impressed by the spirit in which the people of South Australia have fa ced their problems. No State of the Commonwealth has a fin er record o£ achievement in the face of natural difficulties; and, equally, no State has surpassed South Australia .in its loyal attachment to the Commonwealth.

We believe the proposals we make will go far towards restoring their economic and financial balance, which , by the inevitable pressure of events has become temporarily disturbed. This, in turn, we may hope, will remove the feeling of grievance which we discovered during the course of our inquiries .

· ACKNUWI,EDGMENT.

64. We gratefully acknowledge the courtesy and assistance of t he South Australian Government and offi cials, as well ae the Commonwealt h officers, who aided us greatly in our labours. We also desire to thank the Secretary, Mr. J. Brophy, most sincerely for the efficient and indefatigable manner in which he has carried ou t his d uties. ·- .

\V e have the honour to be, Your Excellencv's most obedient Servants. " . JOSEPH COOK , Chairman.

HERBERT BROOKES.

ALBERT E. BARTON.

J. BROPHY, Secretary, . Sydney, 15th March, 1929.

39

APPENDIX I.

VALUE OF AUSTRALIAN PRODUCTION.

New South Wales.

£

·r ota/ I 38,954,ooo

Tot" I I so, 922,ooo

Tot<>, I . . I 40,704,ooo

Tot al I 39,381 ,000

Tot al I 46, 725,ooo

Tot al . . 1 54,o8o,ooo

Agricultural P astoral . .

. .

Dairy, P oultry and Bee ]<'arm-Ing . . ',.

J!'orestry and F isheries Mining ..

Manufacturing

Total

Agricultural P ns toral Dairy, Poultry and':ilee lng ' oo oo

F orestry and F isheri es Mining ..

:Manufacturing

1\ 't.al

Agricult ural Pastoral . . . .

Dairy, Poultry and Bee F arm- Ing . .

. .

Forestry and F isheries Mining • •

Manufacturing

Total

Agricultural Pastoral Da iry, Poultry and Bee ];'arm- Ing 00 ..

Forestry and Fisheries Mining ..

M o.nufacturing

Total

Agricult ural Pastoral . . . .

Dairy, P oultry and Bee Farm-Ing . .

Forestry and F isheri es Mining . .

Tot al

Agricultural P astoral ..

Dairy, Poultry and Bee F arm-ing • . . .

Forestry and Fisheries Mining ..

Manufacturing

Total

Agricultural Pastoral Dairy, Poultry and Bee ]<' arm-ing oo oo

Forestry and Fisheries Mining . •

Manufacturing

Total

7,483,000 26,680,000

5, 337,000 1,072,000 10,132,000 13,062,000

63,766,000

9,686,000 22,024,000

6,072,000 1,108,000 8,180,000 13,039,000

60,109,000

13,196,000 24,312,000

5,998,000 1,120,000 7,260,000 13,916,000'

65,802,000

11,337,000 27,289,000

6,822,000 1,278,000 8,258,000 16,4:!5, 000

71,409, 000

11,433,000 25,115,000

6,984,000 1,382,000 9,221,000 18,702, 000

72,837,000

13,860,000 24,703,000

7,958,000 1,580,000 11,059,000 21,929, 000

81,089,000

14,615,000 26,196,000

7,695,000 1,593,000 11,,133,000 22,944,000

84,476,000

I

Victoria. Queensland. South Western Australia. Australia. Tasmania.

£ £ £ £ £

1901.

I 30,807 ,ooo 116,933,000 110,314,000 112,544,000 5,033,000 1902. 1 29,987,ooo l13,541,ooo I 9,721,000 113,781,000 5,563,000

1903.

1 31,228,ooo I 14,611,000 I 10,604,000 I 15,497,ooo 5,028,000

1904.

1 31,652,ooo 118,686,000 I 11,352,000 I 15,398,ooo 5, 874,000

1905.

I 33, 936,ooo I 19,635,ooo I 14,233, ooo 115,521,000 5,796,000 1906 . 1 36,549,000 I 22,499,000 1 12,523,000 I 14,777 ,ooo 6,615,000

1907.

9,481,000 . 3,292,000 6,447,000 1,750,000 1,870.000 I 11,564,000 8,944,000 3,707,000 1,899,000 910,000 6,280,000 1,903,000 1,220,000 364,000 563,000

706, 000 918,000 205,000 930,000 99,000

3,068,000 4,132,000 815,000 7,667,000 2,251,000

10.879,000 4,112,000 3,223,000 1,807,000 1,007,000

41,978,000 23,301,000 15,617,000 14,417,000 6,700,000

1908.

12,922,000 8,462,000 8,972,000 9,002,000

' 6,066,000 2,2 44,000 712,000 1.010.000 2,939,000 3,844,000 11,088,000 3,530.000

42,699,000 23,092,000

I

7,119,000 1,949,000 2,012,000 3, 483,000 1,638,000 978, 000

1,399,000 38 0,000 403,000

213,000 1,099,000 217,000

I 457 ,000 7,242,000 1,623,000 3,423, 000 1,797,000 1,079,000 16,094,000 14,105,000 6,312, 000

1909.

12,036,000 3,485,000 7,459,000 2,912,000 1,968,000

10,127,000 10,135,000 3,542,000 2,260,000 955,000

6,112,000 2,239,000 1,409,000 403,000 410,000

730,000 1,060,000 211 ,000 1,149,000 222,000

2,877,000 3,657,000 411 ,0 00 1,561,000

12,137,000 4,187,000 3.602,000 1,782,000 1,289,000

44,019,000 24,763,000 16,634,000 15,561 ,000 6,405,000

1910.

12,629,000 3,863,000 7,223, 000 2,716,000 1,983,000

10,616,000 11,947,000 4,164,000 2,277,000 863,000

7,042,000 2,545,000 1,608,000 436,000 629,000

786,000 1,192,000 263,000 1,271.000 271 ,000

2,63 1,000 3,710,000 41 2,000 6,522,000 1,432.000

13,48 4,000 5,227,000 4,111,000 1,886,000 1,309,000

47,188,000 28,484,000 17,781,000 15,108,000 6, 48 7,000

1911.

11,842,000 3,186,000 7,634,000 2,623,000 2,044,000

11,746,000 9,947,000 3, 736,000 2,016,000 869,000

8,122,000. 2.509,000 1,486,000 424,000 61 8,000

805,000 1,452,000 332,000 1,493,000 386,000

2,465,000 443,000 6,105,000 1,349 ,000

15,326;000 5,547,000 4.5 02,000 2,215,000 1,239,000

50,306,000 26,3o2;ooo 18,133,000 14,876,000 6,505,000 I

1912 .

13,975,000 4,276,000 7,909,000 3,474,000 2,238,000

11,498,000 11,837,000 3,995,000 2,158,000 1,057,000

8,201,000 2,751,000 1,612,000 470,000 713,000

890,000 2, 332,000 16,979,000

1,715,000 362,000 1,780,000 399,000

4,175,000 588,000 5,769,000 1,494,000

6,085,000 4,812,000 2,388 ,000 1,208,000

53,875,000 30,839,000 19,278,000 16,039,000 7,109,000

1913.

13,245,000 6,241,000 I 12,141,000 13,981,000

8,015,000 3,1 92,000 935,000 1,671,000 2,172,000 3,858,000 17,974,000 7,772,000

6,202,500 3,982,000 1,855.000 I

3,893,000 2,128,000 908,000

1,639,000 518,000 61 6,000

355,000 1,647,000 408,000

634,000 6,03U,OOO 1,416,000 5,166,000 2,491,000 1,327,000

54,482,000 36,715,000 1 I

17,889,500 16,802,000 6,530,000

I

Northern Territory.

£

10,000 92,000

Federal Capital Territ{)ry.

£

I

Austr&lla.

£

1114,585,000

I 109,615,ooo

I 117,672,ooo

1 122,343,ooo

I 135,846,ooo

1147,043,000

30,323,000 53,704,000

15,667,000 3.940,000 28 ,157,000 34.0UO ,OOO

102,000 . . 1 165,881,000

9, 000 70,000

79,000

12,000 72,000

84,000

1,000 250,000

4,000 11,000 65,000

331,000

1,000 35,000

1,000 18,000 59,000

114,000

3,000 62,000

500

19,000 58,000

3,500 87,000

1,000 17,000 45 ,000

153,500

11,000 4,000

10,000

25,000

19,000 6,000

7,500

32,500

18,000 9,000

6,000

33,000

37,150.000 46,097,000

16, 56!,000 4,36&, 000 24,355,000 33,956,000

162,490,000

41,056,000 51 ,331,000

16,571,000 4,504,000 22. 893.000 36.913,000

173,268,000

39,752,000 57,406,000

19,086,000 5.072,000 23,030,000 42, 442,000

186,788,000

38,774,000 53,468,000

20,154,000 5,868,000

47,531,000

189,098,000

45,754,000 55,316,000

21,713,000 6,745,000 25,475,000 53,401 ,000

208,404,000

46,162,000 59,343,000

21 ,682,000 6, 626,000 25,594,000 57,6 74,000

217,081,000

2239

40

APPENDIX I-VALUE OF AusTRALIAN PRODUCTION .--continued.

Agricultural Pastoral . . . .

Dairy, Poultry and Bee Farm-ing . . . .

Forestry and F isheries ,Mining ..

Manufacturing

Tot.al

Agricultural . . . .

Dairy, Poultry and Bee Farm-ing . . . .

and

Mining ..

Manufacturing

Total .

Agricultme . . . .

Dairy, Poultry and Bee Farm-ing . . . .

Fmestry and Fisheries Mi ning ..

Manufacturing

Total

Agriculture Pastoral . . . .

Dairy, Poultry and Bee Farm-ing . . . .

Fm;estr y and Fisheries Mining ..

Manufacturing

Total

Agriculture Pastoral . . . .

Dairy, Poultry and Bee Farm-ing . . . .

Forestry and Fisheries Mining ..

Manufacturing

Total

Agriculture Pastoral . . . .

Dairy, Poultry and Bee Farm-ing . . . .

Forestry and Fisheries Uining . .

:M:anufacturing

Tot.;.!

Agriculture Pastoral . . . .

Dairy, Poultry and Bee F a rm-ing . . . .

FJrestry and Fisheries Mining ..

Manufacturing

Total

Agriculture Pastoral . . . .

. Dairy, Poultry and Bee Farm-ing . . . .

Forestry and Fisheries Mining ..

Manufacturing

Total

.Agriculture Pastoral . . . .

Dairy, Poultry and Bee Farm-ing • . . .

Forestry and ]fisheries Mining ..

1\fanufacturing

I

New South South Western Northern Federal

Wales. Victoria. Queensland. Australia. . Australia. Tasmania. Territory . Capital Territory. ---------

£ £ £ £ £ £ £ £ £

1914.

1

11.427,000 I 9,877 .ooo 26,560,000 14,042,000

8,470,000

5,680,000 I 16,290,000

3,499,000 J ,826.000 2,Cl76,000 8,071,000

I

4,101,000 3,106,000 3,557,000 1,946,000

1,477,000 558,000

1,830,000 5,000

999,000 54,000

592,000 2 ,000

26,000 4,000 63,452,000

4,000 22,504,000

I

1,514,000 1,013,000 386,000 1,692,000 412,000 10,000 6,853,000

9,822,000 2,087,000 23,501,000 18,846,000

592,000 5,534,000 1,007,000 30.000

4,821,000 2,495,000 1,270,000 ..

1 14,934,000 15,331,000 1 6,110,000 .• 107;000 I 81,294,000 5:3 ,767,000 38,342,000

. . I 22.054.000 . . 59,004,000 3l,OOO 209,919,000

1915.

1

23,632,000 23,-113,000 5,021 ,000 13,686,000 6,310,000 3,388,000 I 3,000 22,000 I 75,475.000

25,278,000 H. 792,000 17,194,000 3,946,000 3,055,000 1,509,000 73,000 5,000 65,852,000

8,644,000 7,606,000 3,358,000 1,528,000 667,000 589,000 1.000 6,000 22,399,000

1,f.08.000 1,676,000 470,000 1,027,000 420,000 12,000 . . 6,253,000

9,288,000 1, 738,000 3,325.000 I 988,000 5,478,000 1,225,000 1 18,000 . . I 22,060,000

23,501,000 19,141,000 7, 755,000 4-,801,000 2,300,000 1, 714,000 . . . . 59,212,000

-----1-----1------------- I 2f',419,000. 18,837,000 8 ,845,000 107,000 33,000

15,275,000 33,930,000

10,499,000 1,487,000 10,110,000 24,499,000

95,800,000

16,997,000 34,8()2,000

11,786,000 1,623,000 11,971,000 26,207,000

103,446,000

1916.

18,179,000 6,020,000 16,696,000 15,926,000 I 14,887,ooo I I 4,908,000 9,832,000 3,854,000 2,146,000

1,055,000 1,531,000 487,000

1,404,000 4, 021,000 1,202,000

19,141,000 7,810,000

66,307,000 1 39,162,000 1

4,801,000

28,431,000

1917.

5,124,000 1,755,000 3,873,000 1,691,000

767,000 826,000

1,059,000 431,000

4,893,000 •• ,21.000 I 2,346,000 1,905,000 18,062,000 8,129,000

3,000 77,000

12,000 25,000 61,255,000 77,126,000

1,000 6,000 27,931,000

12,000 6,062,000

41,000 23,192,000

. . 60,502,000

134,ooo j_ 43,ooo I 256,o68,ooo

17.174,000 I 18,177,000

10.608,000 I 1,121 ,000

7.308.000 11,965.000 4,262.000 1.918.600 I 400 16.000 59.641.000

18,000,000 5,802,000 4,719,000 1,451,000 865,000 50,000 83,026,000

5,032,000 2 258 000 771,000 861,000 1,000 9,000 31,326,000

1,4'l9,ooo '497:ooo 1,069,ooo 337,ooo

1

11.000 6,147,ooo

1,294,000 4,013,000 1,452,000 4,629,000 1,582,000 57,000 . . 24,998,000

20,513,000

68,887,000 1

_8_, 9_8_2_.o_o_o_ 1

__ 5_, 3_6_4_,o_o_o_ 1

__ 2_,_33_3_,o_o_o_ 1

__ 1_ , 9_2_8_,o_o_o . . . . 65,327, ooo

44,824,ooo 1 27 ,338,ooo j_ 1_7_, 7_8_3,_o_oo_ 1

__ 8_,o_77_,_6o_o ___ 93_4_,4_o_o ___ 7_5_,o_oo __ 2_71_ ,3_65_,_oo_o

11H8.

14,964,000 I 18,554,000 6,011 ,000 12,302,000 I 4,761,000 2,423,000 I 36,332,000 20,474,000 18,590,000 6,495,000 4,478,000 1,578,000 I 20,000 59,036,000 5,000 88,448,000

11,944,000 1,801,000 13,220,000 28,504,000

106,765,000

15,689,000 44,695,000

13,624,000 2,620,000 8,912,000 37,780,000

123,320,000

38,325,000 35,829,000

18,947,000 2,956,000 9,792,000 41,180,000

147,029,000

24,569,000 30,282,000

12,682,000 4,854,000 2,407,000 1,195,000 1,821,000 497,000

1,103,000 3,741,000 1,442,000 22,452,000 8,636,000 6,017,000

76,460,000 43,653,000 29,160,000

1919-20.

23,990;000 6,297,000 13,728.(,)00 26,507,000 16,867,000 6,741,000

15,112,000 4,915,000 2,884,000 1,972,000 2,459,000 554,000

1,152,000 2,575,000 772,000

32,320,000 10,455,000 6,797,000

101 ,053,000 43,568,000 31,476,000

1920-21.

31,898,000 10,386,000

I

19,981,500

20,473,000 16,454,000 6,325,000

19,476,000 7,688,000 3,74S,OOO 2,381,000 2,862,000 533,000

1,435,000 3,618,000 1,151,000

35,966,000 11,689,000 7,118,000

111,629,000 52,697,000 38,856,500

1921-22.

24,994,000 10,515,000 11,610,000 14,685,000 15,323,000 4, 722,000

794,000 1,1('0,000 4,265,000 2,382,000

1 17,8_40,000

9,070,500 4,714,000

1,060,000 1,524,000 4,192,000 2,756,000

23,316,500

8,763,000 4,918,000

1;154,000 1,745,000 4,110,000 3,527,000

24,217,000

6,961,000 3,866,000

14,549,000 15,856,000 8, 706,000 2,862,000 964,000

2,828,000 2,148,000 2,441,000 687,000 1,869,000

12,052,000 1,219,000 1,496,000 904,000 3,464,000

1,048,000 401,0QO 1,598,000 2,096,000

9,144,000

3,394,000 1,641,000

1,228,000 526,000 1,307,000 2,222,000

10,318,000

3,422,000 1,722,000

1,591,000 650,000 1,427,000 2,298,000

11,110,000

3,226,000 1,134,000

1,475,000 542,000 823,000 2,234,000

1,000 15,000

93,000 I

606,000

1,500 407,000

1,000 15,000 72,000

496,500

1,5 00 I

134,000

2,000 9,000 1 80,000 .. I

226,500 l

2,000 28,000

1,000 4,000 19,000

8,000 33,738,000 6,890,000 25,462,000 70,087,000

33,000 283,661,000

32,000 72,202,000 6,000 101,578,000

6,000 38,830,000 9,670,000 18,982,000 92,330,000

44 ,000 333,592,000

24,000 112,801,000 6,000 85,861,000

7,000 52,613,000 11,136,000 21,613,000 101,778.000

37,000 385,802,000

13,000 81,890,000 8,000 70,048,000

4,000 44,417,000 10,519,000 19,977,000 112,517,000 44,864.000 41,226,000

1

11.797,000 8,817,000 I 3,579,000

1

_1_29_,_14_4_ ,o_o_o_ 1

_1_o_ o,_1_28_,_o_oo_ 50,278,ooo

1

29,602,ooo _2_o_, 7_o_3_ ,o_o_o_ 1

_____ 1 1 ____ t·--- 9,434,000 54,000 25,000 1339,368,000

1922-23.

25,277,000 25,396,000 10,165,000 13,146,000 39,404,000 20,021),000 16,679,000 6,898,000

14,419,000 16,668,000 6,995,000 3,164,000 2,981,000 2,191,000 2.798,000 406,000

12,951,000 1,215,000 1,859,000 332,000

49,915,000 43,853,000 12,915,000 .9,727,000

144,947,000 . 109.,379,000 51,411,000 33,673,000 '-

6,547,000 3,629,000 5,514,000 1,595,000

1,014,000 1,276,000 2,245,000 499,000

3,041,000 878,000

4,151,000 2,627,000

22,512,000 10,504,000 --

2,000 414,000

4,000 10,000

430,000

21,000 84,183, 000 5,000 90,535,000

6,000 43,542,000 11,124,000 . . 20,316,000

__ . ·-·-1 123,188,000 3z,ooo I 372,88s,ooo

41

APPlllNDIX I--VALUE OF AusTRALIAN. PRODVCTION.-continued.

New South South Western Northern Federal Particulars. Wa.Ies . Vi ctoria . Queensland. Australia. Australia. Tasmania. Territory Capital Australia. Territory. -£ £ £ £ £ £ £ £ 1923-24. Agriculture . . 1 24,447,000 ' 22, 199,000 10,106,000 \ 1 Pastoral . . . . 44,981,000 21 ,007,000 1 9,405,000 Dairy, Poult ry and Bee F arm- 1 4.156,000 8,410,000 7,564,000 2,668,000 6,806,000 2 ,031.000 1,000 198,000 25,000 81,166,000 5,000 102,843,000 ing . . . . 12.7 48 ,000 17,456,000 5, 990 ,000 Forestry and Fisheri es 3,174,000 2,287,000 3,034,000 • 3,446,000 1,106.000 ] ,360,000 1,000 5,000 17,000 5,000 42,112,000 427,000 2,291,000 648 ,000 Mining . . 14,177,000 1 ,031,000 2,216.000 Manufacturing 53,967,000 46,639,000 13.543:ooo 890,000 2,747,000 1 ,154.000 11,866,000 22,232,000 Agricult ure Pastornl . . . . . . Dairy, Poult ry and Bee ] 'arm- ing . . . . Forestry and Fisheri es Mining .. Manu.fa ctming Total Agriculture Pastora l . . . . Dairy, Poultry a nd Bee Farm- ing . . Forestry and. Fisheries Mining .. Manufacturing 'Iot nl Agriculture . . . . Pastoral . . . . Dairy, Poultry and Bee ing . . . . . . F orestry and :Fisheries .. Mining . . . . . . ManufactUl'in g . . . . ----- 15£,494,000 110,fll9,000 I 54,294,000 I 0,920.000 4,457,000 3.206,000 8,249,000 24,971 ,000 , 11.067,000 I 1 1924-25. 36,021,000 27,725,00() 13,992,000 15,318 ,00(1 56,771,000 23,553,000 25 ,025,000 8, 296,000 14,612,000 17,109,000 7, 679,000 3,319,000 3,815,000 1,746,000 3,537,000 403,000 16,300,000 965,000 2,306,000 953,000 57,282,000 46,721,000 14.650,000 11,333,000 184,801,000 1117,819,000 67,189,000 39,622,000 I 11,211,000 I 2,806.000 I 4,000 119,000 107,096.000 5,964,000 2.177,000 84,000 21,000 121,891,000 i,158.ooo I 1,3o8,ooo 1,ooo 4,ooo 45,19o.ooo 2,122,000 721,000 112,000 1,000 12,357,000 2,777.000 1,326.000 19,000 I . . 24,646,000 l 5 012.000 2, 979,000 . . . . 137,977.000 28,244,000 _:_1. 317,000 : 120,000 1925-26. 25,688.000 22.426,000 12,527,000 15,476.000 9.7-!9,000 I 3,373,000 52,253,000 23,840,000 22,041,000 7,533,000 5,608,000 1 , 745,000 15.804,000 17,121,000 8,203,000 3.355,000 1,365,000 1 ,301 ,000 3,988,000 1,782,000 3,360,000 455 ,000 2,596,000 58 9,000 16,657,ooo 1,oo1,ooo 2,012,ooo 1,o2s,ooo 2,394,ooo 1 1,478,ooo 2,000 290,000 26.000 89,267,000 17,000 113,327,000 1,000 11,000 47,161,000 12,000 2,000 12,784,000 22,000 . . 24,592,000 62,845,000 45 ,983,000 14,114,000 12,±01 ,000 4,\J-!6 ,000 1 2,967,000 26,658,ooo ! 11, 453,ooo . . I . . 143.256,000 1 327,000 ___ 56,000 1926-27. 26,709,000 26,974,000 12,182,000 1 16,63 , 6,000 11,794,000 3,971,000 3,000 2(1,000 98, 2\J5 ,000 56,457,000 23, 319,000 1 6, 676,000 7,203.000 5,745,000 1,662,000 41,000 65, 000 111,168,000 16,793,000 17, 305,000 6,948, 000 3, 242,000 1,389,000 1,290,000 1,000 12,000 46,980,000 3,942,ooo 1,973,ooo 3,085,ooo I 481,ooo 2,70'!,ooo 587,ooo 16,ooo 2,ooo 12,7no,ooo Tota l 16,3Hl,OOO 1,082,000 1,60Q,OOO I 1,032,000 2,372,000 1 I 19,000 . . 24,007,000 1_76_,_5_31_,_oo_o_1 __ 5_o._c_69_,_oo_o_1 __ 1_2,_7_72_,_oo.,...o_l_l_3_,3_9_o_,o_o_o_1 __ 6_·,1_3_o_,o_o_o_1 __ s __ '_l4_2_,o_o_o_1 ___ ·_· _ __ ·_·_ . . 187,751,000 1121,322,000 53, 272,000 41, 984,000 30,13 -1-,000 1 12,226.000 80,000 105,000 446,874,000 The amounts for" Manufacturing" d iffer from those given in Appendix 12 owinf! to certain profln cts whi ch are there iucludeJ having uee u included in Dairy Farmin g and Forestry in this table. APPENDIX II. STA'l'E REVENUE FROM DIRECT TAXATION Year. New South Victoria. Qu eens! ani!. South I Western Tasmania. Six St11tes. V\ral es . Australia . Australia . . £ £ £ £ £ £ £ 1902-3 .. .. 1,108,7 81 878,591 415,688 39 8,941 221,247 105,402 3,128,650 1903-4 . . .. 1,100,193 938,147 475,184 353,432 235,114 150,091 3,252,161 1904-5 . . .. 1,114,408 897,870 454,574 442,030 221,738 3,347,573 1905- 6 . . .. 1,297,776 990,735 494,165 369,756 260,609 248,799 3,661,840 1906-7 . . . . 1,381, 305 1,110,411 540,737 411,867 266,152 276,450 3,986,922 1907-8 . . .. 1,077,534 977,620 525,540 477,637 277,463 265,656 3,601,450 1908- 9 . . . . 907,249 1,072,228 535,194 450,250 296,599 250,835 3,512,355 1909-10 . . .. \,223,521 1,088,353 584,997 481 ,003 336,396 303,390 4,017,660 1910-ll . . .. 1,027,519 1,344,573 667,196 545,986 325,246 284,965 4,195,485 1911-12 . . .. 1,885,653 1,501,696 787,577 551,994 352,314 340,434 . 5,419,668 1912-13 . . .. 1,405,360 1,577,878 806,677 536,401 393,615 345,282 5,065,213 1913-14 . . .. 2,330,005 1,598,876 887,798 730,640 386,104 371,413 6,304,836 1914-15 . . .. 2,955,670 1,762,041 954,457 588,690 371,960 367,577 7,000,395 1915-16 . . ... 3,17'7,221 2,074,839 1,455,358 701,511 407,997 384,820 8,141,746 1916-17 . . .. 3,629,404 2,237,016 1,564,044 726,645 402,336 438,632 8,998,077 1917-18 . . .. 3,860,501 2,310,723 1,761,232 1,016,887 449,457 533,383 9,932,183 1918-19 . . .. 4,083,990 2,744,946 2,772,269 1,185,451 629,061 555,537 11,971,254 1919-20 . . .. 4,962,518 3,159,7 67 3,323,745 . 1,391,830 844,197 609,576 14,291,633 1920-21 . . .. 7,388,133 3,846,833 3,6 82,642 1,622,076 955,359 708,603 18,203,646 1921-22 . . .. 7,249,017 3,791,174 3,420,296 1,778,576 881,159 727,701 17 ,847,923 1922-23 . . .. 7,799,118 4,077,046 3,330,885 1,816,776 987,558 728,175 18,739,558 1923-24 . . .. 7,988,131 4,476,158 3,617,201 1,841,720 1,173,568 928,360 1924- 25 . . .. 8,115,151 4,819,580 3,914,161 2,290,754 1,224,030 1,306,361 21,670,037 1925-26 . . .. 8,850,877 5,179,269 4,104,122 2,660,419 1,418,050 1,239,967 23,452,704 1926-27 . . .. 12,627,824 6,411,936 4,756,119 2,798,292 1,292,333 1,229,823 29,116,327 1927-28 . . .. 12,224,963 7,257,428 5,355,304 I 3,707,392 1,397,398 1,134,528 31,077,013 N ote. - 1. The figures for the years 1926-27 and 1927-28 include all motor taxation. 2. For the last four years the Tasmanian figures include lottery tax handed over by the Commonwealth. 2241

42

III.

UNIT OF PRODUCTION.

DIRECT TA.X.ATION EXPRESSED .AS .A PERCENTAGE OF THE V .ALUE OF PRODUCTION OF THE PREVIOUS YEAR.

Year.

1902-3 ..

1903-4 ..

I904-5 . .

1905-6 ..

1906-7 ..

1907-8 ..

1908-9 ..

I909-10 . .

19IO-ll ..

19ll-12 ..

I912-13 ..

1913-I4 ..

1914_:15 ..

I915-16 . .

19I6-17 . .

l9I7-I8 . .

1918-19 ..

1919-20 . . I920-2l . .

192I-22 ..

1922-23 . . 1923-24 ..

I924-25 . . 1925-26 . . I926-27 . .

1927-28 ..

Year.

1895-96 ..

1896-97 ..

1897-98 ..

1898-99 ..

1899-1900

:901-02 . .

1902-03 . . I903-04 . .

1904-05 . . I905-06 ..

1906- 07 . .

1907- 0S . . 1908-09 ..

1909-10 . . 1910-11 . . 1911-I2 ..

19I2-13 ..

1913-14 ..

1914-15 .. 1915-I6 ..

19I6-17 ..

1917-18 . . 1918-I9 ..

1919-20 . . 1920-21 ..

1921-22 . . 1922-23 . . 1923-24 . . 1924-25 ..

1925-26 . . 1926-27* . . 1927-28* . .

New South Victoria. Queensland. South Western Tasmania. Wales. Australia. Australia..

% % % % % %

.. 2.85 2.85 2.45 3.87 l. 76 2.09

.. 2 .98 3.I3 3.5I 3.64 1.71 2.65

.. 2.74 2.88 3.ll 4.I7 1.43 4.3I

.. 3.30 3.I3 2.64 3.26 1.69 4.24

.. 2.96 3.27 ·2.75 2.89 1.71 4.77

.. 1.99 2.67 2.34 3.81 1.88 4.02

.. 1. 42 2.55 2.29 2.88 2.06 3.74

.. 2.04 2.55 2.53 3.63 2.38 4. 81

.. 1.56 3.05 2.69 3.28 2.09 4.45

.. 2.64 3.18 2.76 3.10 2.33 5.25

.. 1.93 3.14 3.07 2.96 2.65 5.31

.. 2.87 2 .97 2.88 3.79 2.4I 5.22

.. 3.50 3.'23 2.6·0 3.29 2.21 5.63

.. 3.83 3.86 3.80 4.70 2.66 6.30

.. 3.95 3.30 4:08 2.86 2.I4 4.96

.. 4.03 3.48 4.50 3.58 2.49 6.56

.. 3.25 3.98 6.18 4.34 3.54 6.88

.. 4.65 4.13 7.61 4.77 4.73 6.67 - .. . 5.99 3.81 8.45 5.15 4.IO 6. 87 .. 4.93 3.40 6.49 # 4.58 3.64 6.55 .. 6.04 4.07 6.62 6.14 4.77 7.72 .. 5.51 4.09 7.04 5.47 5.21 8.84 .. 5.29 4.36 7.21 5.99 4.90 11.80 .. 4.79 4.40 6.11 6.71 5.02 10.96 .. 7.12 5.72 7.64 6.95 4.85 10.74 .. I 6.52 5.98 10.05 8.83 4.64 9.28 I APPENDIX IV . DIRECT TAXATION PER HEAD OF POPULATION IN EACH OF THE STATES, 1895-96 TO 1927-28. New South I Vi ctoria. I Queensland. South Western Tasmania. Wales. Australia. Australia. £ 8. d. £ s. d. £ s. d. £ 8. · d. £ 8. d. £ 8. d. .. 1 19 9 2 5 5 310 9 2 7 5 8 IO I 3 0 0 .. I I7 8 2 410 3 6 3 2 13 6 8 I3 IO 3 2 4 .. 1 I8 9 2 9 3 3 7 4 2 10 7 6 19 10 3 6 0 .. 1 18 2 2 I2 2 3 I3 9 2 13 2 6 IO IO 3 5 0 .. 1 19 l 2 10 3 4 1 7 2 10 3 6 ' 4 0 3 14 10 .. 0 16 1 0 12 4 0 IO 11 0 14 8 0 I7 ll 0 I3 0 .. 0 15 10 0 14 6 0 I6 3 I I 9 1 0 9 0 12 2 .. 0 I5 5 0 15 6 0 I8 5 0 19 2 1 0 9 0 I7 0 .. 0 I5 4 0 14 10 0 17 5 I 3 9 0 18 4 I 4 1 .. 0 17 5 0 16 3 0 18 9 0 19 7 1 0 5 1 7 6 .. 0 18 1 0 18 0 I 0 2 I 1 6 1 0 4 1 10 9 .. 0 13 9 0 15 10 0 19 3 I 5 3 I I IO l 8 0 .. 0 II . 6 017 2 0 19 2 1 3 1 I 210 I 6 2 .. 0 15 2 0 17 0 l 0 3 l 4 3 I 5 4 I 11 5 .. 0 12 6 I 0 8 1 2 3 I 6 8 1 3 6 1 9 5 .. 1 2 6 1 2 l, 1 5 4 I 6 2 1 3 11 1 I5 2 .. 0 15 IO l 2 10 1 5 4 1 4 9 1 5 8 1 15 0 .. I 5 5 1 2 8 I 611 1 13 2 I 4 1 1 16 10 .. 1 11 8 1 4 8 1 8 2 1 6 -s 1 3 0 · 1 16 6 .. 1 13 4 ] 9 3 2 2 9 1 11 11 1 5 8 1 18 3 .. 1 19 1 '1 12 0 2 6 9 1 13 8 1 6 1 2 3 l1 .. 2 1 1 1 12 9 2 11 2 2 6 7 1 9 1 2 12 6 .. 2 1 8 1 18 2 3 18 7 2 11 10 2 0 7 2 14 8 .. 2 8 8 2 2 0 4 IO 4 2 17 10 211 6 2 18 1 .. 3 10 8 2 10 4 4 18 1 3 6 1 2 17 8 3 6 7 .. 3 8 2 2 8 ll 4 9 0 2 10 10 2 12 6 3 .6 8 .. 311 9 2 ll 3 4 4 6 3 10 10 2 17 6 3 6 6 .. 3 12 3 2 15 l 4 9 2 3 10 2 3 6 4 4 4 9 .. 3 12 0 2 IS 2 4 I3 9 4 5 1 3 7 3 5 I9 11 .. 3 17 0 3 l 6 4 I5 3 4 16 5 3 16 2 5 14 3 .. 5 7 9 3 14 11 5 7 10 4 18 10 3 8 3 5 14 6 .. 5 1 10 4 3 4 5 19 2 6 8 9 3 ll 3 5 5 1 Six Statet.

%

2.73 2.97 2.84 . 2.99

2.93 2.45 2.I2 2.47 2.42 2.91 2.68 3.03 3.23 3.88 3.58 3.88 4.43 5.05 5.47 4.63 5.52 5.38 5.52 5.22 6.77 6.96

Average all States.

£ 8. d.

2 II 0

2ll 7

2 I2 9

2 I3 4

2 14 IO

0 14 I

0 16 1

0 I6 7

0 I6 10

0 18 1

0 19 4

0 I7 3

0 16 7

0 18 7

0 19 0

1 3 9

I 1 5

1 5 11

I 8 4

1 13 0

1 16 11

2 0 3

2 7 1

2 14 0

3 7 3

'3 4 9

3 6 7

3 9 9

3 13 10

3 18 4

4 15 5

4 19 10

I

• Four States exclude motor taxation wholly or in part from direct figures, but, for all motor ta.;ation h!l!$

been included in tbese for tbe years a,nd 192·7-28. , · . · ·

43 2243

APPENDIX V.

AGRICULTURAL PRODUCTION.-AREA UNDER CROP.

ToTAL AREA.

Season. New South South Wes tern Northern

Federal

Wales. Victoria. Queensland. Australia. Australif\. Tasmania. Territory. Capital Australi a. Territory. ----

acres. acres. acres. acres. acres. acres. acres. acres. acres.

1900-1 .. 2,446,767 3,114,132 457,397 2,369,680 201,338 224,352 .. . . 8,813,666

1901-2 .. 2,278,370 2,965,681 483,460 2,236,552 217,441 232,550

I

. . . . 8,414,054

1902-3 .. 2,249,092 3,246,568 275,383 2,224,593 229,992 246,923 . . . . 8,472,551

1903-4 .. 2,545,940 3,389,069 566,589 2,256,824 283,752 259,611 . . . . 9,301,785

1904-5 .. 2,674,896 3,321,785 539,216 2,275,506

I 327,391 226,228 .. .. 9,365,022 1905- 6 .. 2,840,235 3,219,962 522,748 2,255,569 364,704 230,237 . . . . .9,433,455 1906-7 .. 2,826,657 3,303,586 559,753 2,157,235 460,825 244,744 . . . . 9,552,800 1907-8 .. 2,572,873 3,232,523 532,624 2,2(i5 ,017 493,837 25 7,028 . .. . . 9,353,902 1908-9 .. 2,717,085 3,461,761 535,900 2,321,812 585,339 269,346 . . . . 9,891,243 1909-10 . . 3,180,561 3,658,535 606,790 2,530,301 722,086 274,026 .. I . . 10,972,299 1910-11 .. 3,386,017 3,952,070 667,113 2,746,334 855,024 286,920 360 .. 11,893,838 1911-12 .. 3,628,513 3,640,241 526,388 2,f165,338 1,072,653 270,000 375 3,509 12,107,017 1912-13 . . 3,737,085 4,079,356 668,483 3,062,998 1,199,991 286,065 330 3,741 13,038,049 1913-14 . . 4,567,592 4,391,321 747,814 3,169,559 1,537,923 264,140 354 4,309 14,683,012 1914-15 .. 4,807,001 4,622,759 792,568 3,282,364 1,867,547 274,474 391 4,870 15,651,974 1915-16 .• 5,796,376 5,711,265 729,588 3,763,570 2,189,456 333,334 274 4,371 18,528,234 1916-17 .. 5,164,434 4,851,335 885,259 3,627,<177 2,004,944 270,526 274 2,131 16,806,380 1917-18 . . 4,461,172 4,110,225 727,958 3,079,778 1,679,772 238,199 134 1,744 14,298,982 1918-19 .• 3,891,823 3,942,899 525,517 3,111,079 1,605,088 254,109 99 1,779 13,332,393 1919-20 . . 3,771,468 4,000,815 563,762 3,058,770 1,628,163 270,955 365 2,109 13,296,407 1920-21.. 4,465,143 1 4,489,503 779,497 3,231,083 1,804,987 297,383 296 1,966 15,069,858 1921-22 .. 4,445,828 4,530,312 804,507 3,378;764 1,901,680 293,708 283 1,942 15,357,024 1922-23 . . 4,694,287 I 4,862;548 863,755 3,575,452 2,274,998 298,61 1 427 2, 172 16,572,250 1923-24 .. 4,809,591 4,682,144 871,968 3,562,551 2,323,070 279,122 440 2,300 16,531,186 1924-25 .. 4,912,124 4,761,394 1,069,837 3,557,405 2,710,856 263,872 342 2,361 17,278,191 1925-26 . • 4,541,360 4,433,,192 1,033,765 3,583,867 2,932,110 266,412 391 2,181 16,793,578 1926-27 .• 4,593,847 4,735,173 941,783 3,883,920 3,324,523 289,364 440 3,449 17,772,499 Per of Population. Federal I Season. Now South I Victoria. Queensland. South Western Tasmania. Northern Capital Australia. Wales. Australia. Australia. Territory. Territory. I acres. acres. acres. acres. acres. acres. acres. acres. acres. 1900-1 .. 1,799 2,603 926 6,633 1,118 1,297 .. .. 2,341 1901-2 .. 1,656 2,451 954 6,224 1,123 1,327 .. .. 2,200 1902-3 .. 1,604 2,687 538 6,231 1,085 1,376 .. . . 2,186 1903-4 .. 1,786 2,813 1,094 6,321 1,263 1,419 .. .. 2,375 1904-5 .. 1,838 2,755 1,027 6,332 1,368 1,222 .. .. 2,356 1905-6 .. 1,909 2,660 984 6,220 1,458 1,235 .. . . 2,339 1906-7 . . 1,900 2,708 1,039 5,886 1,806 1,320 .. . . 2,335 1907-8 .. 1,691 2,622 976 6,062 1,940 1,356 . . .. 2,248 1908-9 . . 1,740 2,769 962 6,018 2,254 1,405 .. .. 2,337 1909-10 . • 1,971 2,865 1,050 6,440 2,718 1,419 . . . . 2,538 1910-11.. 2,060 3,037 1,114 6,750 3,089 1,480 109 .. 2,688 1911-12 .• 2,169 2,671 846 7,091 3,646 1,396 115 1,827 2,650 1912-13 .• 2,102 2,955 1,050 7,122 3,920 1,451 95 1,928 2,755 1913-14 . . 2,494 3,110 1,133 7,203 4,796 1,310 96 2,168 3,014 1914-15 . . 2,582 3,231 1,171 7,431 5,782 1,363 98 2,486 3,168 1915-16 .. 3,099 4,025 1,075 8,584 6,885 1,658 "60 2,390 3,757 1916-17 . . 2,740 3,453 1,306 8,208 6,539 1,383 59 959 3,417 1917-18 .. 2,324 2,900 1,059 6,893 5,481 1,203 28 829 2,870 1918-19 .• 1,984 2,743 745 6,797 5,181 1,252 21 797 2,624 1919-20 .. 1,850 2,661 764 6,351 4,973 1,291 80 1,099 2,507 1920-21 . . 2,135 2,938 1,036 6,578 5,456 1,397 74 997 2,784 1921- 22 .• 2,089 2,921 1,045 6,723 5,674 1,345 76 941 2,787 1922-23 .. 2,160 3,058 1,096 6,968 6,621 1,364 120 849 2,942 1923- 24 .• 2,177 2,881 1,075 6,789 6,566 1.274 124 877 2,875 1924-25 . • 2,179 2,873 1,281 6,606 7,444 1;211 I 95 788 2,942 1925-26 .• 1,976 2,633 1,200 6,497 7,878 I 1,228 107 553 2,803 1926-27 . • 1,957 2,766 1,068 6,857 8,777 1,347 113 701 2.908 - ..

- ----

I

8 "" I New South ea · · Wales. - ---------

1900-1 ..

1901-2 ..

1902-3 ..

1903-4 ..

1904-5 . .

1905-6 ..

1906-7 ..

1907-8 . .

1908-9 ..

1909-10 ..

1910-ll ..

1911-12 ..

1912- 13 .. 1913-14 ..

1914-15 ..

1915-16 ..

1916-17 .. 1917-18 ..

1918-19 ..

1919-20 ..

1920-21 .. 1921-22 ..

1922-23 .. 1923-24 ..

1924-25 .. 1925-26 . .

1926-27 ..

1927-28 . . (a)

Se:v;on.

1900-1 1901-2 1902-3 1903- 4 1904-5 1905-6 1906-7 1907-8 1908-9 1909-10 1910-11 1911- 12 1912-13 1913-14 1914-15 1915-16 1916-17 1917-18 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 1925-26 1926-27

bushels. 16,173,771 14,808,705 1,585,097 27,334,141

16,464,415 20,737,200 21,817,938 9,155,884

15,483,276

27,913,547 25,080,111 32,466,506

37,996,068 12,812,803 66,726,459 36,585,380 37,704,626 18,324,640

4,387,209 55,610,993 42,759,389 28,660,824

33,171,300 ·59,752,435 33,800,619 . 47,373,713

26,972,100

N ew South Wales.

I

bushels. 11 ,889 10,766 1,131 19,179 11 ,3 12 13,937 14,664

6,017 9,915 17,679 16,981 14,993 18,265 20,743

6,883 35,675 19,685 19,642

9,342 2,153 26,594 20,101

13,190 15,013 26,504

I

14,706 20,178

·44

APPENDIX VI.

AGRICULTURAL PRODUCTION.-vVHEAT.

ToTAL YIELD.

I South Western V1ctoria. I Queensland. Tasmania.

I

Australia. Australia.

------

bushels. bushels.

I bushels. bushels. bushels. 17,847,321 1,194,088 11,253,148 774,653 1,110,421 12,127,382 1, 692,222 8,012,762 956,886 963,662 2,569,364 6,165 6,354,912 985,559 876,971 28,525,579 2,436,799 13,209,465 1,876,252 767,398 21,092,139 2,149,663 12,023,172 2,013,237 792,956 23,417,670 1)37,321 20,143,798 2,308,305 776,478 22,618,043 1,108,902 17,466,501 2,758,567 651,408 12,100,780 693,527 19,135,557 2,925,690 644,235 23,345,649 1,202,799 19,397,672 2,460,823 700,777 28,780,100 1,571,589 25,133,851 5,602,368 793,660 34,813,019 1,022,373 24,344,740 5,897,540 1,120,744 20,891,877 285,109 20,352,720 4,358,904 659,615 26,223,104 1,975,505 21,496,216 9,168,594 630,315 32,936,245 1,769,432 16,936,988 13,331,350 3,940,947 1,585,087 3,527,428 2,624,190 384,220 58,521,706 414,438 34,134,504 18,236,355 993,790 51,162,438 2,463,141 I 45,745,064 16,103,216 348,330 37,737,552 1,035,268 28,692,594 9,303,787 252,383 25 ,239,871 104,509 22,936,925 8,845,387 186,570 14,858,380 311 ,638 14,980,413 11,222,950 213 ,589 39,468 ,625 3,707,357 34,258,914 12,248,080 565,874 43,867,596 3,025,786 24,946,525 13,904,721 577,178 35,697,220 1,877 ,836 28,784,767 13,857,432 569,587 37,795,7 04 243 ,713 34,551,955 18,920,271 305,628 47,364,495 2,779,829 30,528,625 23,887,397 231.388 29,255,534 1,973,477 I 28,603,101 20,471,177 395;603 I 46,886,020 379,339 35,558,711 30,021,616 537,000 2.6,160,814 3,777,000 24,066,012 35,134,156 I 672,000 (a) Preliminary figures. Y ield pe-r 1,000 of Population. I South Western Victoria. Queensland. Australia. Australia. Tasmania. bushels. bushels. bushels. bushels. bushels. 14,920 2,418 31,500 4,304 6,420 10,023 3,340 22,299 4,943 5,499 2, 127 . 12 17,801 4,649 4,887 23 ,678 4,707 36,998 8,348 4,195 17,495 4,095 33,456 8,409 4,282 19,347 2,140 55,551 9,228 4,166 18,542 2,057 47,656 10,811 3,512 9, 816 1,271 51,211 11,494 3,398 I 18,670 2,11)9 50,275 9,477 3,655 22,537 2,720 63,971 21,087 4,110 26,750 1,707 59,835 21,304 5,783 15,330 485 48,671 14,817 3,409 018,9 95 3,104 49,981 29,950 3,196 23,324 . 2,680 38,489 41,572 1,734 2,755 2,342 7,986 8,124 1,908 41,241 611 77,854 57,344 4,944 36,574 3,679 105,718 52,147 1,742 26,628 1,506 64,214 30,356 1,274 17,559 148 50,115 28,554 919 9,884 423 31,105 34,278 1,017 25,828 4,928 69,749 37,024 2,659 28.284 3,930 49,635 41,485 2,643 22;448 2,382 56,089 40,329 2,602 23,253 300 65,845 53,475 1,395 28,583 3,329 56,691 65,602 1,062 17,372 2,292 51,852 55,003 1,823 27,389 430 62;781 79,266 2,501 . Federal

Capital Australia.

Territory.

bushels. bushels.

.. 48,353,402

.. 38,561,619

. . 12,378,068

.. 74,149,634

.. 54,535,582

.. 68,520,772

.. 66,421,359

.. 44,655,673

.. 62,590,996

. . 90,413,597

.. 95,111,963

7,991 71,636,327 20,830 91,981,070 24,313 103,344,132 17,727 24,892,402 38,451 179,065,703 12,620 152,420,189

7,374 114,733,584 360 75,638,262

813 45,974,992

14,007 145,873,850 7,611 129,088,806 7,176 109,454,842 4,700 124,993,271 14,565 164,558,7 34

4,881 114,504,392 5,487 160,761 886 .. 116,737,082

Federal Capital Australia.

bushels. bushels. .. 12,842

.. 10,082

.. 3,194

.. 18,932

.. 13,723

.. 16,747

.. 16,234

.. 10,730

.. 14,789

. . 20,910

.. 21,494

4,056 15,955

10,737 19,433

12,230 . 21,2J2

9,049 5,038

21,023 36,307

5,677 31,264

3,505 23,026

161 14,885

424 8,667

7,103 . 26,952

3,688 23,427

2,806 19,430

1,793 21,739

4,858 28,107

1,240 19,019

1,115 26,309

45 2245

APPENDIX VII.

AGRICULTURAL PRODUCTION.- VINEYARDS. AREA.

Season. New South Wales. Victoria. Queensland. South Australia. Western Au.stralia. Au.stralla.

acres. acres. acres. acres. acres. acres.

1900-1 .. .. 8,441 30,634 2,019 20,158 3,325 64,577

1901-2 .. .. 8,606 28,592 1,990 20,860 3,629 63 ,677

1902-3 .. .. 8,790 28,374 1,559 21,692 3,528 63,943

1903-4 .. .. 8,940 28,513 2,069 22,617 3,324 65,463

1904-5 .. .. 8,840 28,016 2,194 23,210 3,413 65,673

1905-6 .. .. 8,754 26,402 2,044 23,603 3,541 64,344

1906-7 . . .. 8,521 25,855 2,070 22,586 3,525 62,557

1907-8 .. .. 8,483 26,465 1,973 21,080 3,23 1 61,232

1908-9 .. .. 8,251 24,430 1,616 22,031 3,122 59,450

1909-10 .. .. 8,330 22,768 1,695 22,441 2,917 58,151 .

1910-11 . . .. 8,321 23,412 1,634 22,952 2,795 59,114

19ll-12 . . .. 8,231 24,193 1,371 23 ,986 2,821 60,602

1912-13 .. . . 8,163 24,579 1,428 25,208 3,010 62,388

1913-14 .. .. 8,153 22,455 1,537 26,208 2,864 61,197

1914-15 .. .. 7,985 21,801 1,415 26,864 2,920 60,985

1915-16 .. . . 7,883 22,353 1,373 27,764 2,751 62,124

1916- 17 .. .. 8,666 23,264 1,256 29,177 3,031 65,394

1917-18 .. .. 8,594 25,236 1,274 29,762 . 2,996 67,862

1918-19 . . .. 8,740 26,072 1,287 31,023

1-

2,936 70,058

1919-20 .. .. 8,923 27,441 1,203 32,784 2,975 73,326

1920-21 .. .. 10,783 29;255 1,256 36,661 3,210 81,165

1921-22 . . .. 12,583 33, 175 1,281 41,424 3,951 92,414

1922-23 .. .. 13,734 38,892 1,242 46,750 4,858 105,476

1923-24 .. .. 14,559 42,599 1,269 49,303 5,235 112,965

1924-25 . . .. 14,737 42,467 1,579 50,280 5,331 114,3!)4

1925-26 .. .. 14,465 40,712 1,656 50,594 5,270 112,697

1926-27 .. .. 14,281 40,612 1,682 50,271 5,274 11 2,120 .

I

APPEN.DIX VIII.

AGRICULTURAL PRODUCTION.-WINE.

Season. New South Wales. Victoria. Queensland. South Aushalia. Westem Australia. Au9tralia.

-

gallons. gallons. gallons. gallons. gallons. gallons.

1901-2 . . .. 868,479 1,981,475 148,835 2,631,563 185,735 5,816,087

1902-3 .. .. 806,140 1,547,188 100,852 2,573,424 158,853 5, 186,457

1903-4 .. . . 1,086,820 2,551,150 38,558 2,445,270 138,371 6,260,169

1904-5 .. .. 928,160 1,832,386 60,433 2,845,853 185,070 5,851,902

1905-6 .. .. 831,700 1,726,444 66,926 2,755,947 208,911 5,589,928

1906-7 .. .. 1,140,000 2,044,833 65,016 2,495,434 195,660 5,940,943

1907-8 .. . . 778,500 1,365,600 90,191 2,061,987 153,755 4,450,033

1908-9 .. .. 736,262 1,437,106 77,698 3,132,247 132,488 5,515,801

1909-10 .. .. 808,870 991,941 91,410 2,569,797 140,559 4,602,577

HH0-11 . . .. 805,600 1,362,420 74,306 3,470,058 153,665 5,866.049

19ll-12 .. .. 850,210 983,423 57,358 2,921,597 162,559 4,975,147

19i2-13 .. .. 719,100 1,206,111 54,627 3,9 74,838 149,132 6,103,808

1913-14 .. .. 56,100 ] ,121,491 58,897 2,759,665 208,738 4,709,891

1914-15 . . .. 549,140 605,636 51,164 1,507,196 162,190 2,875,326

1915-16 .. .. 571,000 1,380,367 59,008 3,709,878 166,820 5,887,073

1916-17 . . .. 628,950 1,302,660 23,171 2,951,048 220,439 5,126,268

1917-18 .. .. 538,210 800,068 39,125 5,331,166 156,532 6,865,101

1918- 19 .. .. 555,770 1,349,309 44,491 6,544,125 199,142 8,692,837

1919-20 .. .. 717,893 1,634,680 48,495 5,085,939 162,3 97 7,649,404

1920-21 .. .. '674,188 2,222,305 71,403 7,893,345 152,979 11,014,220

1921-22 .. .. 627,105 1,355,066 57,793 6,370,310 152,299 8,562,573

1922-23 . . .. 771,206 1,717,490 53,171 8,653,579 232,347 11,427,793

1923-24 .. .. 1,459,778 2,177,127 37,242 10,756,538 233,196 14,663,881

1924-25 .. .. 1,171,264 1,368,765 33,119 10,502,381 223,761 13,299,290

1925-26 .. .. 1,240,893 1,637,274 39,375 13,074,874 238,726 16,231,142

1926-27 .. . .. 1,625,507 2,346,314

I

32,974 16,159,595

I

291,951 20,456,341

46

APPENDIX IX.

AGRICULTURAL PRODUCTION.- RAISINS ANP CURRANTS PRIEP.

New' South Wales. Victoria. South Australia, Western Australla. .Australia,

-

Ral

cwt. cwt. C\\t. cwt. c;; t. cwt. cwt. cwt. cw t.

1901-2 . . .. .. 27,533 2,546 7,340 3,413 . . .. 40,832

1902-3 .. .. .. 35,534 3,722 11,562 4,886 .. . . 55,704

1903-4 .. .. .. 53,447 7,491 13,063 10,406 .. .. 84,407

1904-5 .. .. . . 30,295 5,974 8,697 16,714 .. . . 61 ,680

1905-6 .. .. .. 42,975 6,403 11,919 19,870 . . .. 81,167

1906-7 '. .. . . 98;127 11,730 16,123 23,281 .. .. 149,261

1907-8 . . 901 68,617 10,440 24,488 19,957 .. . . 124,403

1908- 9 . . 1,435 69,536 11,929 28,007 24,449 . . .. 135,356

1909-10 .. 1,482 81,044 27,408 27,808 36,052 .. .. 186,794

1910-ll .. 2,656 79,318 26,394 34,745 40,261 .. .. 183,374

1911-12 .. 3,839 102,924 46,789 34,651 46,695 . . .. 234,898

1912-13 .. 4,417 109,677 48,337 35,248 52,208 975 600 251,462

1913- 14 .. 4,874 120,303 62,098 35,548 49,170 940 837 273,770

1914- 15 .. 2,591 1,252 111,006 28,527 35,305 24,774 989 1,152 149,891 I 55,705

1915-16 .. 5,539 2,415 180,104 70,556 5!),929 66.518 1,496 1,128 247,068 140,6 17

1916-17 .. 4,239 2,276 142,970 66,449 35,624 50)47 1,332 1,843 184,165 120,715

1917-18 .. 3,508 1,904 104,911 53,799 42,192 51,924 703 1,948 151,314 109,575

1918- 19 .. 3,496 2,450 135,060 68,234 29 ,662 59,834 2,163 2, 157 170,381 132,675

1919-20 .. 2,084 2,465 211,307 55,661 58,502 80,400 3,559 4,307 280,452 142,833

1920-21 .. 4,448 2,469 11 6,887 62,919 39,534 65,307 7,308 5,786 168, 177 136,481

192 1-22 .. 6,6!l6 4,189 190,451 75,042 66,083 76,534 6,790 6,371 270,020 162,136

1922-23 .. 11 ,253 5,768 285,520 98,081 69,261 96,807 6,748 9,250 372,782 209,906

1923- 24 .. 16,967 6,658 438,827 150,867 125,006 131,000 9,606 15,769 590,406 304,294

1924-25 .. 19,1 80 5,953 366,999 104,948 139,385 109,446 7,940 12,689 533,504 233,036

1925-26 .. 23,168 6,132 351,506 123,733 111 ,261 103 .910 9,631 10,919 495,566 244,694

1926- 27 . . 4L064 9,106 657,714 135,464 162,401 87;662 8,861 22,936 s7o,o4o I 255,168

I '

APPENDIX X.

PASTORAL PRODUCTION-WOOL.

New South South Western Northern

Soo.oon. Wales. Victoria. Queensland, Australia. Australia. Tasma.nia. Territory.

(a) (b)

lbs. lbs. lbs. lbs. lbs. lbs. lbs. lbs.

1901 . . 310,075,000 86,7.86,834 72,405,110 44,552,586 15,304,648 10,27.0,199 .. 539,394,377

1902 .. 217,411,000 78,498,152 45,350,633 42,792,909 14,633,006 9,616,446 .. 408,302,146

1903 . . 227,004,000 61,866,675 55,605,362 44,399,971 14,644,941 6,867,427 .. 410,388,376

1904 . . 250,941,000 86,125,619 66,843,252 40,207,376' 13,963,693 12,320,563 .. 470,401,503

1905 . . 297,154,000 74,746,552 72,323,361 41,221,437 19,523,003 11,752,777 .. 516,721,130

1906 .. 325,441,000 78,258,11 3 88,068,089 48,928,116 17,437,645 12,600,822 .. 570,733,785

1907 . . 367,446,000 120,017,787 104,173,964 57,830,794 22,013,541 10,878,478 .. 682,360,564

1908 .. 349,782,000 93,999,156 115,283 ,309 52,040,731 22,450,624 13,859,755 .. 647,415,575

1909 .. 401,601,000 112,102,445 127,531,834 56,415,539 30,048,360 12,550,598 740,249,776

1910-11 .. 402,334,000 126,803,644 149,250,802 63,874,797 31,525,654 13.338,540 400,000 787,527,437 1911-12 .. 404,655,000 135,463,041 152,382,269 60,344,986 32,41 8,696 12,726,593 400,000 1912-13 .. 326,557,000 113,762,612 146,878,270 57,191,859 28,230,070 14,416,014 450,000 687,485,825 1913-14 .. 379,450,000 131,833,690 164,183,114 55,354,502 27,994,352 12,092,564 400,000 771,308,222 1914-15 .. 369,414,000 120,406,867 165,478,740 41,253,542 25,824,602 12,049,000 400,000 734,826,751 1915-16 .. 306,205,000 107 ,330,198 140,783,277 36,333,274 33,526,925 11 ,747,000 350,000 636,275,674

1916-17 .. 318,241,000 119,845,024 112,220,125 37,533,738 35,957,546 12,441,978 350,000 636,589,411 1917-18 .. 322,855,000 130,424,682 97,425,558 49,738,850 41,742,007 11 ,927,044 330,000 654,443,141 1918-19 .. 340,953,000 151,64 7,061 123,777,272 59,780,784 47,646,579 12,279,998 330,000 736,414,694 1919-20 .. 352,071 ,000 157,847,167 128,035,461 62,352,971 48,679,169 13 ,069,237 50,000 762,105,005

1920-21 .. 275,269,000 115,250,571 124,809,963 52,363,342 45,961,562 11,503,048 40,000 625,197,486 1921-22 .. 333,856,000 128,512,777 142,579,733 57,764,173 48,680,912 11 ,634,624 30,000 723,058,219 1922-23 .. 336,899,000 127,467,950 144,971,150 58,698,738 46,407,890 12,218,550 20,000 726,683,278 1923-24 .. 1303,032,000 107,513,36 1 131 ,913,075 57,881,936 50,525,440 11 ,71 2,273 20,000 662,598,085 1924-25 .. 369,118,000 133,484,871 152,131;544 62,438,953 47,204,687 12,483,452 20,000 776,881,507 1925-26 .. 402,490,000 139,076,017 158,744,544 69,007,266 51,827,080 12,564,000 30,000 833,738,907 1()26-27 .. 499,322,000 151 ,624,526 129,435,804 72,365,200 59,300,023 12,333,000 30,000 924,410,553

(a} Including Federal Capital Territor)'. (b) Approximate figures.

4:7

2247

APPEND IX XI.

MANUFACTURING INDUSTRIES.

FACTORY E MPLOYMENT.

Yea.r. New South VI ctoria. Queensland. South Western Ta-smania. Aust.rali•. Wale•. Australia. Australla.

NUMBER OF EMPLOYEES.

1903 65,633 73,229 19,286 20,011 11,828 7,785 197,772

1904 68,036 76,287 20,058 18,049 12,685 8,224 203,339

1905 72,175 80,235 21,705 19,273 12,733 8,468 214,589

1906 77,822 85,229 23,961 20,153 12,897 8,498 228,560

1907 86,467 90,903 27,954 22,701 12,625 8,209 248,859

1908 89,098 9:{,808 29,200 24,236 12,425 8,727 257 ,494

1909 91,702 97,355 29,504 25,709 12,826 9,565 266,661

1910 99,711 102,176 33,944 27,010 14,107 9,980 286,928

1911 108,624 11 1,948 37,156 27,885 15,799 10,298 311,710

1912 115,561 116,108 40,948 28,500 16,382 9,957 327,456

1913 120,400 11 8,744 42,363 28,511 17,299 9,784 337,101

1914 11 6,611 118,399 4:3,282 26,874 17 ,640 8,922 331,728

1915 116,611 11 3,834 42,079 25,496 14,631 8,420 321,071 .

1916 116,401 11 3,834 39,983 25,496 12,676 8,362 316,752

1917 117,997 116,970 40,446 26,010 12,168 8,079 321,670

1918-19 .. 127,591 122,349 40,990 27 ,915 12,917 8,713 340,475

1919-20 .. 144,454 136,522 40,891 29,442 15,409 10,0 16 376,734

1920-21 145,011 140,743 43,196 30,430 17,034 10,225 386,639 '

1921-22 .. 148,876 144,876 42,248 31,171 18,127 10,127 395,425

1922-23 .. 152,266 152,625 43,403 34,695 19,097 10,324 412,410

1923-24 .. 159,674 156,162 44,948 37,275 19,712 12,219 429,990

1924-25 .. 165,760 154,158 46,922 38,353 21,758 10,998 439,94\oi

1925-26. .. 174,101 152,959 50,496 40,051 22,142 ll,l71 450,920

Hl26-27 ' . 183,193 161,639 48, 133 42,164 20,424 11,694 467,247

NUMBER PER 1,000 OF MEAN POPULATION.

1903 .. . .

I

46.43 60.76 37.49 56.30 53 .85 43.16 50.85

1904 .. .. 47.25 63.42 38.44 50.56 54.22 44.94 61.63

1905 .. . . 49 .07 66.53 41.04 53.55 51.62 45 .90 53.69

1906 .. .. 51. 72 70 .22 44 . 69 55.50 50 .70 46. 12 56 . 35

1907 .. .. 56.01 74.18 51.51 61.74 49.41 44.42 60.40

1908 .. .. 56.63 75 .62 52 . 74 64.12 . 48 . 19 46.55 61.44

1909 .. .. 57.38 77 . 19 51.77 66. 19 48.72 50.28 62.43

191 0 .. .. 61.06 79.67 57.38 67.92 52.05 52.25 65 . 71

1911 .. .. 65.31 84 . 77 60.44 67 .74 55. 10 54. 17 69.47

1912 .. .. 66.33 85 .51 64.66 67.27 54.42 52 .19 70 .44

1913 .. 66.20 85 .07 64.62 65.20 55.20 50 . 34 70.01

1914 .. .. 62.40 82. 94 63 . 71 60.34 54.67 45.51 67. 16

1915 .. .. 61. 71 79.51 60 . 75 57. 11 45.54 42.91 64 .50

1916 .. .. 61.53 80.48 58.40 57 . 73 40.49 43.04 64. 12

191 7 .. .. 61.98 82.88 59.30 58.85 39.72 41.61 65 .12

1918- 19 .. .. 65 .03 85.13 58.20 61.01 41.64 42.95 67 .10

1919- 20 .. .. 70 . 85 90.83 55.55 61.15 47 .00 47.73 71. 12

1920- 21 .. .. 69.33 92.11 57.55 61.97 51.41 48.06 71.53

1921- 22 .. .. 69.96 93.43 54.99 62 .04 54 .00 46.39 71 .85

1922- 23 .. .. 70.07 95.98 55.06 67 . 61 55.58 47.16 73.29

1923-24 .. .. 72.27 96.08 55.41 71.03 55.71 55.78 74.86

1924-25 .. .. 73 . 53 93.03 58.60 71.22 59.75 50.49 74 .99

1925-26 .. .. 75.75 90.83 58 ;64 72 . 60 59.49 51.47 75.35

1926-27 .. .. 78 . 03 94.42 54. 56 74 .44 53.93 54.45 76.58

1907 1908 1909 1910 1911 1912 1913

1914 1915 1916 1917 1918- 19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 1925-26 1926- 27

1907 1908 1909 1910 19ll 1912 1913 1914 1915 1916 1917 1918-19 1919-20 1920-21 1921-22 1922-23 1923-24 1924-25 1925-26 1926-27

48

APPENDIX XII.

MANUFACTURING INDUSTRY.

FACTORIES-VALUE ADDED IN PROCESS OF MANUFACTURE.

\' Ci\1.' . New South Victoria. Qu eensland. I

South Western Tasmania. Wales. Australia. Australia.

£ £ £ £ £ £

.. .. 13,641,164 ll,269,052 4,510,654 3,261,836 2,218,000 1,097,000

. . .. 13,779,847 11,587,119 4,038,551 3,472,812 2,322,800 1,194,000

. . .. 14,705,363 12,624,937 4,970,724 3,654,000 2,339,282 1,407,136

. . .. 17,051,757 14,080,464 6,098,400 4,175,709 2,573,341 1,485,915

.. .. 19,432,447 16,080,841 6,664,767 . 4,573,837 3,075,081 1,432,031

. . .. 22,680,746 17,725,095 7,457,972 4,875,705 3,315,048 1,397,837

.. .. 23,763,594 18,731 ,113 9,176,731 5,227,132 3,500,331 1,513,484

.. .. 24,329,776 19,648,966 9,445,942 4,877,808 3,563,008 1,486,023

.. .. 24,329,776 19,902,384 9,204,513 4,874,056 2,890,972 1,911,394

.. .. 25,234,565 19,902,384 9,102,644 4,874,056 2,779,950 2,117,203

.. .. 27,132,989 21,919,378 10,615,984 5,502',014 2,733,964 2,134,281

.. .. 32,767,525 26,639,816 10,442,697 6,406,061 2,828,085 2,348,639

.. . . 39,314,317 I 34,189,039 12,535,064 6,924,780 3,450,480 2,540,862

.. .. 43,128,137 38,422,773 14,350,452 7,277,904 4,492,605 2,762,442

.. .. 46,745,939 43,560,860 14,857,654 8,968,432 4,879,427 2,661,807

.. . . 51,491,671 46,184,499 15,729,705 9,939,768 5,406;214 3,003,001

.. . . 55,660,816 48,900,814 16,048,663 11,179,282 5,698,262 3,754,580

.. .. 59,044,051 48,922,070 17,633,618 11 ,579,199 6,542,298 3,415,522

.. .. 64,838,370

I

48,041,916 16,880,777 12,673,999 9,611,113 3,378,084

.. .. 69,849,044 52,903,456 15,269,660 13,655,406 7,054,295 3,593,412

AvERAGE PER HEAD oF PoPULATION.

£ 8. d. £ 8. d. £ 8 . d. £ 8. d. £ ' 8. d. £ 8 . d.

.. . . 8 16 9 9 3 11 8 6 3 8 17 5 8 13 7 5 18 9

.. .. 8 15 2 9 6 10 7 5 11 9 3 9 9 0 2 6 7 4

.. .. 9 4 1 10 0 3 8 14 5 9 8 2 8 17 8 7 7 11

. . .. 10 8 10 10 19 7 10 6 2 10 10 0 9 911 7 15 7

.. ..

I

11 13 8 12 3 6 10 16 10 ll 2 3 10 14 6 710 8

.. . . 13 0 4 ' 13 1 1 11 15 7 1110 2 11 0 3 7 6 7

.. .. I 13 1 4 13 8 5 14 0 0 11 19 1 11 3 5 7 15 9 .. .. 13 0 5 13 15 3· 13 18 1 10 19 0 11 0 10 711 7 .. .. 12 17 6 13 18 0 13 5 9 10 18 5 9 0 0 9 14 10 .. .. 13 6 9 14 0 2 13 5ll 11 0 9 8 17 7 10 18 0 .. .. 14 5 1 15 10 7 15 11 3 12 9 0 8 18 6 10 19 10 .. .. 16 14 0 18 10 8 14 16 7 14 0 0 9 2 4 1111 7 . . .. 19 5 8 22 14 ll 17 0 7 14 7 8 10 10 6 12 2 2 .. .. 20 12 4 25 2 ll 19 2 4 14 .16 5 13 ll 2 12 19 8 .. .. 21 19 4 28 I 10 19 6 10 17 17 0 14 10 8 12 · 3 10 . . .. 23 13 ll 29 0 10 19 19 1 19 7 4 15 14 8 13 14 4 .. .. 25 3 10 30 1 9 19 15 8 21 6 1 16 2 1 17 2 9 .. .. 26 310 29 lO 5 21 2 5 21 10 0 17 19 4 15 13 7 .. .. 28 4 2 28 10 7 19 12 0 22 19 6 17 4 4 15 11 4 .. .. 29 15 0 30 18 1 17 6 2 24 2 2 18 12 6 16 14 8

Printed

AustN ii a .

£

35,997,706 36,395,129 39,701,442 45,465,586 51,259,004 57,452,403

61,912,385 63,351,523 63,113,095 64,010,802

70,038,610 81,432,823 9&,954,542 110,434,313 121,674,ll9 131,754,858 141,242,417 147,136,758 155,424,259

162,325,273

£ 8 . d

8 14

8 13

9

9

9 511

10 8 3

ll 8 6

12 7 2

12 17 2

12 16 6

12 13 7

12 19 2

14 3 7

16 1 0

18 13 7

. 20 8 7

22 2 2

23 8 3

24 ll 10

25 1 7

25 19 5

26 12 1