OVERSEAS REPORT
Schafer, F.
OVERSEAS REPORT The State of Labor in Australia By F. Schafer New Leader ( 01 respondent in 1n\hnl<n Melbourne. THE recent federal elections have returned the Australian Labor Government to...
...Many unpopular measures had to be taken in order to achieve a maximum war effort...
...This question has yet to be decided...
...The other two points— increased federal controls over agriculture and employment conditions— were not carried with a sufficient majority...
...That country needed, because of its industrial revolution, an expansion of its agricultural foundations ia order to feed her increasing number of industrial workers...
...For only one point—expansion of the .Federal powers in the realm of social services — found the necessary majority...
...This role as a great farm was assigned to Australia by Britain...
...Indeed, high prices in Britain hava still the significance of prosperity for farmers, and hence of the whole national economy in Australia, while low prices on the British market havs the automatic consequence of depression with its nightmares •f unemployment and poverty amidst Rltety...
...Thus the Government will be able to give to the people a social security scheme...
...Kor on the one hand effective social legislation, as far as the Commonwealth, but not the individual states was concerned, had now become extremely difficult...
...Moreover a Social Security Scheme was advocated by lioth Tory parties...
...However, the voting strength of tho Labor Party remained unchanged...
...How this scheme could lie coinpetible with the promised tax reductions remained, however, obscure...
...This situation hampered the planning power of the Federal Government in much the same way as Roosevelt's New Deal legislation was hindered by the rights of the individual states within the United States...
...Taxes should be reduced by 28 percent...
...Another main aim is to free the industrialization proress which would be inevitable at any rate from the social and economic convulsions which would accompany it, if this great transformation were to be left to unchecked private enterprise...
...In brief the Government put before the people s policy of maximum use of resources in order to achieve the highest possible living standards Agriculture should lie protected against fluctuation* by guaranteed markets...
...Resulting from this doctrine is the conclusion that foreign trade la admissible only as far •s It is compatible with full employment and full development of the country's productive forces—a notion which views foreign trade from • fundamentally different angle as compared with the period before l»14 and even before MH...
...Instead of the Tory argument that goods should be bought where they can be obtained best and cheapest...
...These conditions determine the fundamental feature of Labor's Platform in Australia — namely promotion of industrialization as quickly as possible...
...Hence the general •lections in l»4» resulted In a House of Representatives with 49 Uhot-Ufa out •» 74 members -a I*hor majority not experienced before in the history of the country...
...This wa* don* by referendum held at the time time as the general elections...
...Such a program is of course of special interest for the United States in general and for her labor movement in particular, as this platform means building up of a new industrial community and hence Of a potential competitor to the United States in the Pacific...
...It was to be financed by contributions of employers and workers...
...Labor thinks, that • higher living standard ran be achieved by the fullest use of the available supply of labor and other productive factors, even if in this manner cheaper and better imported good* are excluded...
...One large opposition party — the so-called "Liberal Party"—promised reduction of taxation by 20 percent...
...Hence the empty continent willin spite of alt legal handicaps of Its Federal Government-pass through a period of great development in terms of its internal economy This will he in extraordinary social experiment, and hence ¦ worldwide lesson...
...It promised a ten years plan for development of agriculture...
...Just as in 194S there were still about 51 percent of votes for Ij»bor...
...The Government will be able also to meet the demands of the workers for a general wage increase, likewise there will be determined efforts to overcome the housing shortage by Stale house building, and above all there are enough legal possibilities for the Government to plan for permanent full employment ami the development of industries, la this connection ratification of Bretlon Woods presents the Labor Movement with considerable difficulties...
...THE recent federal elections have returned the Australian Labor Government to power for another three-year term...
...But apart from this temporary handicap there was a permanent one represented by the Australian constitution...
...MoreOver, large masses were now united with the working class In their desire for a haw order which was promised to them M a reward for the sacrifices Involved la winning the war...
...Thus Australia today is a largely underpopulated country...
...However the Labor Party lost four seats to the Tories, and two seats to "Lang" Labor, ao that the number of its seats was reduced from 49 to 43...
...This is still a workable majority which might be increased frequently by the two "Lang" Labor members...
...One chief purpose is the increase of living standards by harnessing the country's vast but undeveloped productive forces...
...These suggestions were questioned by the "Country Party," the other great Tory body...
...Australia certainly will he ruled according to this principle for the next three years...
...This Federal community—called "('ommonweatt h"—consists of six individual states...
...But in other respects the Government will be handicapped by a lack of necessary powers...
...Just because of their particular nature, are of great interest from the American Viewpoint...
...In Australia the way out of those difficulties is alteration of the federal constitution by referendum...
...The LalsM Government in answering these Tory programs pointed out that reduction of taxation was feasible only insofar as such a measure would not interfere with expansion of social services...
...The consequence was Increase of social tension, in great strikes, in increase of leftist trends within the Labor movement Communists began to occupy more and more key posts in trade unions- in dissatisfaction and hostility towards the workers within the middle classes because of ths Inconveniences experienced in strikes...
...However the Laboi Government was still faced wiili »ei ious difficulties...
...The consequence was an awkward situation for the Government...
...The Labor Party Thus the war bringing to the fore the daAcalties arising from Australia's economic structure put the Labor Party lata power, tor this was Up> body which haver tired of pointing odjt to the people the basic dangers Inherent in the economy as an agricultural state...
...About 2 percent went to "Lang" l<abor, a little labor splinter group, and about one percent to the Communist Party...
...But clearly staled are the fundamental principles of Labor's policy...
...Indeed Australia's area is almost as large as the territory of the United States, wKile the population of . this South Pacific island continent is about one twentieth Of that of the United States...
...Banning of Communist* was denounced, but the Labor Parly took measure* designed to diminish the influence of the Communist Party within the Labor Movement...
...In short, ths L* l>oi Government was fared with mounting handicaps, intensified by the propaganda of tin- daily press, which in Australia is a Tory monopoly...
...In order to carry out its program the Government asked the people for extension of Its powers in the realm of »oi ml services, agriculture and employment condition...
...However this fuaction of Australia meant extraordinary dependence upon prices of her farm produce in the British market...
...Moreover, the Government pledged itself to a policy of industrialisation, full employment, improvement of working conditions, public building program, development of the country by great public works...
...Her national economy classifies here as an agricultural state in the first stage of industrialization...
...Thus, about four weeks Hlter the elections a decision of the Federal Arbitration Court introduced practically the 40 hour week in the whole country...
...The hostile attitude of this Tory group towards the trade unions became clear by the suggestion that employers or workers who acted against a decision of an arbitration court should he liable to punishment...
...The Communist Party should lie banned...
...This could not be achieved in 1944, when the Labor Government asked the people for extrordinary powers for post-war reconstruction...
...The power of the Commonwealth is to a large extent limited in favor of the individual states...
...e The 1946 Elections WllKN tbeiefom In Sept embei, 1946, new elections were on, the Tories thought their time had come to regain control...
...Much depends on the skill utilized in exhausting the available legal machinery...
...Many supporters of Labor are afraid that the signing of Bretton Woods will interfere with the controls needed to industrialise the country nnd to ensure full employment...
...They (house—just as all over the world —the slogan of individual liberty against control aod too heavy taxation...
...see Modern Times in Australia I' T is no incident that Australian Labor found increasing support with such a program, l-'oi modern times impressed upon many Australians the impossibility to carry on in the long run as an agricultural country with wool and dairy produce as main export goods...
...Australia is a Federal State...
...For Australia is, similar to the early United States, an empty continent, and hence a country of the future, Capable of great development...
...But apart from a majority of votes in the whole country, there must lie also majorities in four of the six individual states...
...This is a welcome opportunity to review the problems and prospects of Australian Labor which...
...Result of the Referendum MoRK serious is the result of the referendum...
Vol. 30 • March 1947 • No. 11
