CONFIDENTIAL  NOT FOR RELEASE UNTIL 8.00 P.M. on Thursday, 7th NOVEMBER, 1963.  Delivered by Federal Parliamentary Leader, Democratic Labor Party, Senator GEORGE R. COLE, at 8 p.m. on Thursday 7th November, 1963, in Festival Hall, Brisbane.  Ladies and Gentlemen:  This election makes history. It is the first Australian election in which foreign policy, security and defence, are primary issues. The DLP which said these issues were vital at the l961 election welcomes the change. It shows Australia’s maturity in that we now debate and decide our own foreign policies rather than follow imperial decisions.  It also vindicates the DLP fight, since 1954, for recognition that the issues of foreign policy, security and- defence, must be adequately provided for if Australia is to survive.  Fifty DLP Parliamentarians, Federal and State, over the past ten years, sacrificed their seats and careers for this same cause.  Thousands of DLP rank- and file- supporters preferred their country security to old political associations and-friendships.  They have not made their sacrifice in vain.  Australia has, at last, been alerted to the danger.  EXPLOSION FROM ASIA  Before World War II, there was between us and the rest of the world, particularly the teeming Asian world, a protective screen. We had British forces in India; Burma, and Malaysia, the French in Indo-China, the Dutch in the East Indies, the Americans in the Philippines. That screen has vanished and at our doors thanks to modern air transport and communications, is overcrowded Asia, discontented, extremely nationalistic, hungry and facing a population explosion, which must intensify her troubles.  SOME YEARS AGO, RUSSIAN DICTATOR, KRUSHCHEV TOLD A BRITISH REPORTER THAT IT WAS INEVITABLE THAT OVERCROWDED ASIA WOULD SPILL OVER. HE SAID THERE WERE ONLY TWO UNDERPOPULATED AREAS AVAILABLE, SIBERIA IN HIS OWN COUNTRY, AND AUSTRALIA. “NATURALLY”, HE SAID, “I SHALL ENCOURAGE THEM TO SPILL”.  SOUTH EAST ASIA DRIVE  That explains aggressive Communism’s South East Asia drive, which has swallowed Tibet, the Indian frontier areas, Burma's frontier, North Vietnam, North Korea and part of Laos and Cambodia.  It explains Communism’s strength and subversion in such areas as Singapore and Indonesia. It underlines Australia’s danger if South East Asia falls. The figures speak for themselves.  Australia has 11 million people in a vast continent, underpopulated and underdeveloped. Red China has 700 million, India 400 million, the Philippines 26 million, South Vietnam 14 million, Malaysia 8 million, Thailand 26 million, Japan 94 million, Indonesia nearly 100 million. When Mr. Calwell calls for firm action by Australia's almost unarmed 11 million against Indonesia’s 100 million, armed by Russia, one may well ask – “What with?”.  WHAT MUST AUSTRALIA DO ?  At the 1961 Federal election, Mr. Menzies declared in his Policy Speech that Australia’s defences were in satisfactory shape. Mr. Calwell categorically stated in his policy speech that, if elected Prime Minister, he would not spend a penny more on defence than the Menzies Government.  Both now realise they were wrong, but we may ask Mr. Calwell, whom only this  election has made defence-minded, will his Left Wing masters let him carry out his defence promises.  Democratic Labor in 1961 was the only political party to call for strengthening of Australia's defences.  In 1961 our policy was, and still is in the present security crisis:  - THAT AUSTRALIA'S DEFENCES BE DOUBLED IN THE THREE YEARS OF THE NEXT PARLIAMENT.  - THAT OUR PERMANENT FORCES BE INCREASED, AND OUR MILITIA REORGANISED TO PRODUCE THE LEADERS NECESSARY FOR EXPANSION.  - THAT ESSENTIAL DEFENCE INDUSTRIES BE PROTECTED AND ENCOURAGED.  - THAT THE EXPANSION INCLUDE NATIONAL SERVICE. WE STAND FOR A NATIONAL SERVICE PLAN TO BE PREPARED BY MILITARY AND ECONOMIC EXPERTS, WITH THE PRO.  The Democratic Labor Party welcomes the decision since the 1961 election of the Returned Soldiers League, which supports no political party, to advocate doubling our defences and national service.  The DLP welcomes the discovery made in this election by the Liberal, Country and Australian Labor Parties that in 1961, the DLP policy was right, and Australia needs stronger defences.  POWERFUL ALLIES NEEDED  We need, however, not only defences - but powerful allies.  Democratic Labor recognises that Britain, weakened by her noble sacrifices in two World Wars, and by changes in the character of the British Commonwealth, can no longer offer Australia the assistance and protection on which we once relied.  Therefore, the American Alliance is to Australia all important.  Believing that whatever legitimately associates the United States with our defence is to our advantage, the DLP supports the agreement for a U.S. Communications Base in West Australia. If DLP preferences had not blocked an A.L.P. Government in 1961, there would not have been a Base.  In the 1961 Federal election when, as the result of the policies of the Credit Squeeze, the Liberal vote collapsed, there is no doubt that had it not been for the DLP, there would have been a Calwell Government with a majority of approximately twenty seats. And what would the result have been?  In March of this year, you would have had in office a Government which could not have signed the Agreement with the United States to establish the Naval Communications Station at North West Cape.  There was no possible hope of such an Agreement being signed because the A.L.P. Federal Conference would not have permitted it, and Mr. Calwell would have been powerless to influence their decision.  Whatever veneer of moderation was imported into the decision ultimately taken by the A.L.P., was due to the fact that they were out of office and that an A.L.P. majority absolutely against the base would have been politically ruinous to the A.L.P.’s future prospects.  Even then, seventeen votes out of thirty-six, were totally against the Agreement with the United States. Imagine the situation had they been in office, without the need to cultivate and reassure the electorate in order to get into office.  Should efforts by certain A.L.P. and Union elements continue to hold up construction of the Base by a ban on security checks on workers, necessary to prevent Communist spies obtaining employment there, the DLP will support legislation to enforce legitimate security arrangements such as the Chifley Government imposed at the Woomera rocket range.  NUCLEAR TRAP  The DLP regrets that the Australian Labor Party, while professing lip service to the American Alliance has fallen for the trap laid for it by Communist influences in the Trade Unions, who induced the A.L.P. to adopt the proposal for a nuclear free Southern Hemisphere. Mr. Whitlam has admitted that the proposal would be ineffective, without adherence of Indonesia and even Red China, yet his Party, bedevilled by its Left associations retains the policy.  It is clear that Communists insist on the nuclear free Southern Hemisphere plan because they know that the logical conclusion of such a plan is no American Bases in Australia, and without American nuclear arms, Asia and the Western Pacific will be dominated by Red China.  The DLP’s policy on nuclear weapons is:  - that while we do not require them at present, we must reserve the right to hold them especially for retaliatory defence, if required.  - that only world disarmament, both nuclear and conventional, can be effective.  DEFEND MALAYSIA  Democratic Labor welcomes Malaysia and endorses Australia's commitments to her defence.  If there had been a Calwell Government in office at the beginning of this year, the Australian troops would have been withdrawn from Malaysia, for in January, Mr. Calwell himself, demanded that the Australian Battalion should be recalled and stationed at Darwin.  The DLP saved Australia that.  The DLP believes our contribution, though pitifully small, in troops to the Commonwealth Strategic Reserve in Malaysia, through the Air Force in Thailand, and through Army Instructors in South Vietnam, to the defence of South East Asia against aggressive Communism must be maintained.  Provided our contribution is not extended so much as to leave us without reserves, it is fully justified.  Without such a contribution how could we establish our claim to assistance, should we be attacked later. In any case, South East Asia could be our Front Line.  Democratic Labor supports collective security alliances with which Australia is associated, such as ANZUS and SEATO.  Criticism that SEATO is a paper tiger has had some justification, but the remedy is to give it teeth, not as Mr. Calwell suggests, to reduce it to a cultural organisation.  FRIENDSHIP WITH ASIA  The DLP does not believe our relations with Asia should be based only on military or defence considerations.  As Asians are our neighbours we should seek friendship with them.  PACIFIC CONFEDERATION  THE DLP BELIEVES, AS IT SAID AT THE 1961 ELECTION, THAT AUSTRALIA SHOULD LEAD IN INVESTIGATION, ENCOURAGEMENT AND ULTIMATE FORMATION OF A PACIFIC CONFEDERATION OF NATIONS WITH SIMILAR POLITICAL, ECONOMIC AND MILITARY INTERESTS TO OUR OWN.  THE DLP REALISES THAT DIFFERENCES IN STANDARDS OF LIVING, CULTURES AND ECONOMICS, ARE OBSTACLES TO EARLY FORMATION OF A PACIFIC CONFEDERATION AS CLOSE AS THE EUROPEAN COMMON MARKET, BUT DLP BELIEVES, AND IS STRENGTHENED BY THE SYMPATHETIC ATTITUDE OF PACIFIC LEADERS, THAT INVESTIGATION WILL REVEAL AVENUES OF ASSOCIATION AND CO-OPERATION ALREADY, WHICH COULD ULTIMATELY LEAD TO THE IDEAL OF A PACIFIC CONFEDERATION.  SUCH AN ASSOCIATION, APART FROM DEFENSIVE ADVANTAGES, COULD WELL COMPENSATE US FOR DECLINING MARKETS IN EUROPE.  IT WOULD ALSO BE A POWERFUL FORCE FOR PEACE IN THE PACIFIC.  HUMANIZE IMMIGRATION LAWS  The DLP also proposes to strengthen our friendship with Asia by:  - welcoming to our schools and universities more of the Asian students who have been powerful ambassadors of goodwill.  - humanising our immigration laws by, for example, repealing the ban on an Asian employee in a business in Australia, being joined by his wife and children, until he has been here fifteen years.  - increasing our aid to Asia through such avenues as the Colombo Plan. The figure often mentioned of 1% of our national income would not be too much. If the democratic nations could help Asia industrialise and raise her standard of living, Australia would have no worries about markets for our primary products.  - finally, we should increase our diplomatic and trade representation in friendly Asian countries. It is regrettable that we discriminate diplomatically against Free China (Formosa). We should be represented by an Ambassador.  The DLP opposes recognition of Red China, because that country fails to observe the rules, which entitle a country to diplomatic recognition.  The latest decision of UN supports our view.  The DLP strongly supports the latest trade agreement with Japan which, statistics show, will soon become our best customer. The agreement has been valuable to our primary industries, whilst reasonably safeguarding our Secondary industries.  IS A DLP VOTE EFFECTIVE ?  Before turning to our constructive policies, let me answer the question often asked – Is a DLP vote politically effective?  Every vote which has been cast for the DLP from the day of its formation in 1955 until today has been, politically, a most effective vote in Australia.  It has, in the first place, been a decisive vote in determining the Government of Australia. The DLP, by its preferences, has maintained the present Government in power, not because it approved the Government's policies, but because the only alternatives were the Government or the A.L.P.  Faced with that choice, we could make no other decision.  Better a Liberal Government with all its faults and failings, than an A.L.P. Government run by a Federal Conference, with policies often indistinguishable from those of the Communist Party.  PREFERENCE RESPONSIBILITY  How could we mark our preferences so as, in fact, to take the moral responsibility of putting into office a Government effectively dominated by Mr. Chamberlain? How could we take the moral responsibility of giving the power of Government to a Party whose Federal Conference includes men like Mr. Waters, who has urged the amalgamation of the Labor Party with the Communist Party?  Like Mr. Nolan, who on one of his Russian tours, has been made an Honorary Member of the Soviet organisation, the "Pioneers?" Like Mr. Whitby, who only this year, said that the A.L.F. and the Communist Party were both “workers” parties?"  Like Mr. Stout who said that, while he voted A.L.P. placed the Communists second on his ballot paper?  Like Brebner who two years ago, with Mr. Stout, handed the Yallourn Trades and Labour Council over to a Communist A.L.P. Unity Team.  How could we place in power a Government, whose leader would be compelled to humiliatingly wait in a hotel yard for his orders from such an.  ON THE 16th MAY THIS YEAR, MR. CALWELL HIMSELF SAID IN THE PARLIAMENT THAT IT WAS THE FEDERAL CONFERENCE WHICH RAN THE LABOR PARTY AND THAT EVEN JO CURTIN COULD NOT CHANGE THE PARTY’S POLICY ON CONSCRIPTION DURING THE JAPANESE WAR WITHOUT CALLING A FEDERAL CONFERENCE TOGETHER.   IF THAT IS SO, AND THESE MEN DOMINATE THIS FEDERAL CONFERENCE, HOW CAN WE BE EXPECTED TO PUT THEIR PARTY IN POWER?  CLEAN UNITED LABOR MOVEMENT  A vote for the DLP is effective in another way.  It is the most effective way of cleaning up the Labor movement. For it is an open secret that many prominent members of the A.L.P. Parliamentarians and others, now realise that their party cannot govern so long as the A.L.P. - DLP split lasts.  They realise that the DLP has one quarrel with them - pro-Communist policies and the presence of these United Fronters with the Communists, in the top ranks of the Party.  If the A.L.P. is defeated once again on November 30th, these influential leaders of the A.L.P. will realise that they have no alternative but to cleanse their party of Communist influences from top to bottom, both as to policies and as to individuals.  The DLP has always made it clear that when the non-Communist section of the A.L.P. moves to cleanse the ranks of the Party, it will not withhold its help.  Until then, the main pressure to induce these members of the A.L.P. to undertake the long overdue task of cleansing their ranks is a strong DLP vote, and tight DLP preferences.  A vote for the DLP is the most effective and meaningful vote in Australia today.  INTERNAL POLICIES & DEVELOPMENT  In internal affairs, the objective of the DLP is "Property for the People." We oppose both Private Monopoly and State Monopoly, or Socialism.  The DLP in accordance with its objective, stands for a just wage, full employment, home ownership, farm ownership, protection of the small business man. The DLP believes that the family should have first priority in legislation.  The DLP is for Social Justice.  IN DETERMINING ELECTION POLICIES, THE DLP BELIEVES IT IS NECESSARY TO DETERMINE PRIORITIES.  IN OUR VIEW, PRIORITIES FOR GOVERNMENT EXPENDITURE SHOULD BE:  (1) DEFENCE AND SECURITY.  (2) DECENTRALISATION, DEVELOPMENT, IMMIGRATION, WHICH SUPPLEMENT DEFENCE AND SECURITY, AND STIMULATE THE ECONOMY.  (3) THE FAMILY – HOUSING, EDUCATION, CHILD ENDOWMENT, MATERNITY ALLOWANCES, NATIONAL INSURANCE.  POLITICAL PARTIES HAVE EXTRAVAGANTLY TENDED TO ADVOCATE IN ELECTIONS A WIDE VARIETY OF POLICIES WITHOUT REGARD TO COST. THE D.L.P STANDS BY THE PRIORITIES ABOVEMENTIONED. IN REGARD TO OTHER DESIRABLE POLICIES WE ADVOCATE, THEIR IMPLEMENTATION MUST DEPEND ON AVAILABILITY OF FINANCE.  TO STRESS THAT IS TO BE REALISTIC.  SOCIAL POLICY  Our social policy puts first the needs of the family man. It calls for a Contributory National Insurance Scheme at once.  This will give all citizens the opportunity of providing for sickness, accident, unemployment, invalidity, death of bread-winner, and old age.  We stand for an Independent Tribunal to determine just rates of social service payments, such as pensions, unemployment payments, etc., thus taking these services out of policies.  We will increase the maternity bonus for the first child from £15 to £30, and the second child from £16 to £32. All others to be increased from £17.lO.Od. to £35.  At the same time, we will increase child endowment payments from l0/-d. to 20/-d. in the case of the second, third and fourth child, to 22/6 for the fifth child, and thereon increasing by 2/6d. for further children up to a maximum of £2. 0. 0d.  We support liberalising of the Means Test with a view to its ultimate abolition.  We will extend full social service entitlement to all naturalised citizens.  NATIONAL HEALTH  The DLP believes that there should be some national responsibility in regard to the mentally ill. We, therefore, propose that the Federal Government should make an allocation specifically for use in the treatment of the mentally ill by the States which at present, cannot give either adequate humane treatment.  The DLP, believing prevention better than cure, believes in provision of a voluntary full medical check up for every citizen annually, at Government expense. This has never before been advocated in Australia, but its value to Community health would be incalculable.  DENTAL SCHEME  The DLP is very conscious of the dental needs of the Nation and supports demands for legislation to see that the children of Australia have adequate dental treatment.  The DLP believes that all children under the age of twelve, should have the cost of treatment carried out by qualified dental practitioner subsidised in the same way as medical treatment is subsidised today.  EMPLOYMENT and ECONOMIC POLICY  Democratic Labor is keenly aware that Australia faces critical economic problems.  Liberal economic policies have been changing from day to day, baffling industry, inhibiting expansion and planning and contributing to widespread dislocation, unemployment, and loss of confidence at home and abroad.  While the A.L.P. merely mouths political catch-cries with no real human appreciation of the depth of the problem, Democratic Labor is pledged to go straight to the heart of the crisis.  It will develop a self-reliant Australian Nation of free men and women in full recognition of the States existence for the benefit of the individual.  We urge the use of budgetary, banking, and credit policies to encourage both capital and labour into primary and basic industries, to lift our export income and mould a sound and expanding economy.  We advocate a fact-finding Commission to study and report on secondary industry under these classifications:  - Industries valuable to defence and exports.  - Industries which save expenditure on imports.  - Industries which are not essential.  A tariff policy will then be clearly established on the Commission’s findings to cover Australia's requirements and to curb monopoly and increase competition and efficiency.  We will give priorities in credit and investment to primary production; steel, mining, transport, power, building and heavy engineering.  We will stimulate exports.  Loans by banks at special low rates of interest will cover the needs of local authorities, housing, export, new industry and decentralised industry.    EDUCATION   In the field of education, Democratic Labor is appalled at the fact that Australia spends only 1.6 of national income on education, compared with 3.4 per cent in England, and 4 per cent in the U.S.A.  We advocate immediate Commonwealth assistance to all forms of education in all States, with larger financial grants to satisfy present need.  The DLP, the first political party to advocate this policy, is happy that others are slowly seeing its justice.  Without limiting State responsibility in education, Democratic Labor advocates student endowment for each child attending a private school.  Our educational policy is based on the United Nations Declaration of human rights which guarantees parents a prior right to choose the kind of education that shall be given their children.  We advocate an increase of facilities for adults desirous of obtaining higher education and will increase the sustenance at present paid to University students and liberalise the Means Test for this aid.  HOUSING  Democratic Labor insists that the only real solution to the Austral housing problem is for the Commonwealth and State Governments in cooperation to develop and implement a National Housing Plan.  Democratic Labor would set up such a Scheme to guarantee, through an appropriate agency, up to 95 per cent of all housing Loans up to £5,000.  We would make every effort through the Commonwealth Bank to encourage other banks and financial institutions to make available a reasonable ratio of their funds for housing at a minimum possible interest rate.  We would give every assistance to cooperative housing schemes and stimulate efforts for the production of standardised and, therefore, cheaper building materials.  TAXATI0N  Democratic Labor would abolish payroll tax as an impost on initiative and enterprise and an unjustifiable loading on the cost of living, particularly for the family man.  We would allow as income tax deductions, the full amount of reasonable school boarding fees, the cost of hospital and medical expenses not otherwise reimbursable.  We stand for the standardisation of death duties throughout the Commonwealth.  MIGRATION  Democratic Labor believes that Australia's national development and survival as a free nation depends largely on a courageous migration program.  We, therefore, advocate the maximum intake of migrants with particular emphasis on the migration of family groups.  We would give special encouragement to those migrants best fitted to National Development, especially in meeting the needs of rural assist in industry.  The chain migration of relatives of migrants already settled in Australia is regarded as essential, as is a more reasonable balance between the sexes.  Democratic Labor would encourage particularly, the migration of complete industrial undertakings and of people with special and technical skills.  We favour an increase in the quota of disabled, aged refugees and orphans.  Our policy is to grant permanent residence to these classes of Asian nationals:  - Those already admitted under existing immigration laws, with their wives and families.  - Graduates of Australian universities; technical colleges and institutions.  Democratic Labor's policy would be to increase the present nominal migrant intake of 125,000 a year, to a higher figure which is essential for our development and survival.  DECENTRALISATION and NATIONAL DEVELOPMENT  Decentralisation of industry and population, and ultimately of administration and ownership, is an essential ingredient of any balanced, progressive plan of National Development.  We propose that the taxation structure be altered so that the decentralisation of industry and population can, and will, occur. We do not intend that the Government should take an extra penny out of the national income. We consider that the Government already takes far too much already.  But we do say that the manner in which the Government raises its revenue can be altered so that decentralisation will occur. We propose that income tax, company tax, and sales tax, should be reduced and a decentralisation tax imposed to balance the budget.  It is our policy to provide low interest long-term shifting and setting up loans for industry moving to rural areas and to help supply them with cheap power, and housing, health and education facilities, as populations develop.  The DLP would make special taxation rebates for decentralised industry.  We strongly favour the setting up of new ports to serve primary and secondary industries in their hinterlands, and will develop the necessary communications.  We support the establishment of new States in areas placed at a big disadvantage in their development by centralised political and economic control.  We would make a special drive to progressively open up end exploits our huge undeveloped northern areas, and with this in view, would immediately appoint a Northern Australian Development Commission as a Statutory Body, comprised of representatives of the Federal, Queensland and Western Australians Governments, and of the Northern Territory.  The Commission would be supplied with funds to survey the natural resources and communication needs of the area and to plan for stage by stage development.  Special attention would be given to mineral potential, the meat industry, and rice and other crops, which can make us the Supermarket of Asia.  AGRICULTURE  We strongly support all organised marketing of primary produce and would give particular aid to primary industries such as tobacco, in which Australia is not self-sufficient.  It is our plan by a series of vigorous export drives, particularly through South America and South East Asia, to build up new income from our pastoral and agricultural products.  Wool:  The Wool Industry, which is so vital to Australia's economy, is handicapped in coping with the synthetics threat, by disunity among growers on the vital issues of marketing and promotion.  The DLP will support measures, legislative and administrative, for the good of the industry, which are recommended by experts and accepted by growers as a whole.  The DLP favours legislation, if necessary, to prevent adverse influences such as extensive and uncompetitive pyre buying and we are diametrically opposed to the centralisation of wool sales.  We would crack down with the full force of government on any moves by any interests to sabotage sales at outer selling centres.  Wheat:  The DLP endorses the Wheat Stabilisation Plan, including the guaranteed home consumption price.  Dairying:  The DLP realises that there are many problems facing the dairying industry, conspicuous amongst which are the high price of dairying land, and the rising cost of production.  We appreciate that the industry must receive assistance.  We believe that representatives of all sections of the industry must be called together to work out a rehabilitation program for the industry.  Democratic Labor will sponsor such a move.  Until this is done, we will fight any move to withdraw the dairy subsidy, as such withdrawal at present would be disastrous for the industry.  Beef:  The DLP believes that there is a splendid market with great future potential for high grade Australian beef.  We will have that market investigated and growers will receive advice and assistance in how best to capitalise this opportunity. Additionally, we believe that this industry, with government advice and assistance, has a big future in Asia.  Expansion of beef production will go hand in hand with development of the North.  MONOPOLY and the SMALL BUSINESSMAN  I would like, at this stage, to draw the urgent attention of every Australian to the power which has taken place over the past few decades to a greater degree in Australia than any other country of the world.  One firm dominates the steel industry, another the glass industry, another seventy per cent of the paper industry, and a fourth fifty per cent of the rubber industry.  Additionally, there were nearly twice as many mergers per one thousand companies in Australia as in the United States since the Second World War.  Democratic Labor will enlist the cooperation of the States and seek whatever constitutional reforms are necessary to attack Australian monopoly, and we will reform the machinery of the Australian Industries Preservation Act.  We will legislate against price-fixing rings, collusive tendering, and such crimes against them.  In these circumstances, the small businessman was never more in need of an alert political champion.  The monopolies threaten to deprive him, not only of his business, but of his life’s capital.  Democratic Labor is his champion.  POSITIVE ASSISTANCE  We will not only attack the octopus groups robbing him of his independence, but we will also positively assist him:  - By giving Government backing to a Federal Small Businessmen’s Association which will provide him with research facilities, training in management technique, technical and financial advice.  - The Association will give reports on marketing trends to permit him to compete on reasonably fair terms with big companies which already have these advantages.  - By sponsoring of cooperative buying facilities to put him on equal terms in the rates at which he can buy.  - By ensuring him facilities for low interest finance.    INDUSTRIAL   Democratic Labor is the only party with a plan for peace in industry and the ability to carry out that plan.  We will give the wage-earner full employment and security in his job, while preserving industrial peace.  We will give full encouragement and support to the in the Industrial Groups in defeating Communism in the Trade providing strong and enlightened Union leadership.  We stand for a new era in industrial relationships with all workers sharing in the profits of industry.  Unlike the A.L.P. policy of sharpening the class war, and the Liberal policy of spoils to the victors, Democratic Labor will develop a new co partnership in industry.  Democratic Labor's wage policy would guarantee wage levels rising with productivity, and will assure a fair share of the benefits of automation to workers.  We would immediately legislate for the right of unionists to con tract out of political levies and affiliation fees.  We support the right of trade unionists to have ballots in their Unions cleanly conducted by impartial electoral authorities, and will strengthen the Clean Ballot Legislation to prevent intimidation of Unionists invoking it.  We are in favour of upholding the Clauses of the Crimes Act to maintain industrial discipline, provided they are applied equally to employers and employees.  CONCLUSION  We invite those critics who smear the DLP as a splinter party, that a DLP vote is wasted, to look at the figures.  One Australian in ten votes DLP.  Our Senate vote rose from 385,000 in 1958 to 472,000 in 1961.  Half a million good Australians who vote DLP cannot be a splinter neither can their votes or preferences be ineffectual. They decide governments.  I hope you will join them with your vote.  What will your vote for the DLP achieve ?  (1) IT WILL SERVE NOTICE ON THE MENZIES GOVERNMENT, THAT YOU ARE CONCERNED ABOUT AUSTRALIA’S DEFENCES AND ECONOMY. IT TELLS THE PRESENT GOVERNMENT TO GET TO GRIPS WITH THE BIG ISSUES.  (2) IT WILL SERVE NOT ICE ON THE AUSTRALIAN LABOR PARTY THAT IT MUST CLEAN ITS HOUSE AND REJECT THE APPARATUS OF RED UNITED FRONTS, PEACE COUNCILS AND UNITY TICKETS IN UNION ELECTIONS, WHICH HAS SPLIT LABOR, AND COST IT THE PEOPLE 'S CONFIDENCE.  (3) IT WILL APPROVE THE D.L.P.’S TEN YEAR CAMPAIGN AGAINST ODDS TO AWAKEN AUSTRALIA TO THE DANGERS OF ASIAN AGGRESSIVE COMMUNISM AND INTERNAL RED SUBVERSION.  IT WILL KEEP ALIVE THE CAMPAIGN FOR A CLEAN LABOR MOVEMENT.  PREFERENCES OFFER  Mr. Calwell's much publicised statement on television early in the campaign that he wanted DLP preferences, and would like to give A.L.P. preferences to the D.L.F. in return, was obviously an opinion, not an offer.  Mr. Calwell made it clear that any decision on A.L.P. – D.L.F. relations would be made, like most vital A.L.P. decisions, not by himself as Leader, or the Parliamentary Labor Party, but by the Chamberlain dominated Federal Executive, which has almost ruined the Australian Labor Party in electors eyes.  This A.L.P. Federal Executive rejected, only two months ago, the suggestion of the D.L.F. Federal Conference, that leaving political differences aside, A.L.P. men and DLP men unite in the Trade Unions to destroy Communist influence.  The Democratic Labor Party, therefore, can only see in Mr. Calwell's statement not an offer of negotiation, but a request for unconditional surrender.  As a political realist, he knows that an offer to exchange preferences with the DLP is meaningless, because in most seats, A.L.P. preferences will never be distributed.  DLP preferences will be distributed, and may well determine the Government.  WHAT KIND OF GOVERNMENT  Does he expect the DLP to allot preferences to elect an A.L.P. Government.  WHERE MR. CALWELL WILL BE PRIME MINISTER IN NAME, AND THE PRIME MINISTER IN FACT, WILL BE MR. CHAMBERLAIN, WHO DESPITE ALL SUGGESTIONS OF HIS DECLINING INFLUENCE, HAD THE NUMBERS ON EVERY VITAL ISSUE AT THE RECENT FEDERAL EXECUTIVE MEETING IN AIDELAIDE, AND USED THEM TO CARRY EVERY LEFT WING PROPOSAL:  - which stands for the Communist inspired nuclear free Southern Hemisphere policy, whose logical conclusion is no American Bases in Australia which will, according to Mr. Caliwell, leave our troops in Malaysia, but according to A.L.P. Federal President Keeffe and Mr. Chamberlain, who really decide, will bring them home and desert the fight against Communism in South East Asia.  - which will wreck the Arbitration System by repealing the penal legislation and emasculating the clean ballots law.  - whose electoral victory would be hailed as endorsement of all the truckling with the Communist Party on Unity tickets, Peace Councils, and other United Fronts over the past ten years.  - which, this year, has again cravenly permitted Unity tickets in the Railways and Meat Unions to defy its rules.  In this election where Australia’s security may well be at stake, the DLP will neither chicken cut, nor sell out.  The elector who puts Australia first, will vote DLP, and carefully follow the preferences on its Card. Menzies opens ... campaign, policy Speech on Radio, TV.  The Prime Minister, Sir Robert Menzies, said last night that Australia wanted growth and progress and security at home. For this it needed security abroad.  Sir Robert began his policy speech by giving the Government’s reasons for holding an election, then dealt with its foreign and defence policies. More than half his speech was devoted to economic matters and he announced plans for:  A subsidy and loan scheme for housing, competitive scholarships for State and non-State school pupils, increased medical benefits and child endowment, an increased road-building grant to the States, and a subsidy to reduce country petrol prices. Other issues, Sir Robert dealt with included economic growth, trade, restrictive ... practices, northern development and distribution. Sir Robert's speech, which was recorded before a selected audience in Melbourne on Friday night, was broadcast and televised throughout Australia.  Outline of proposals. Sir Robert confined his ... on foreign ... and defence to a ... of government policies and achievements. He said the electoral change needed was to give the government a working majority. The choice you make this time will decide the political and economic future of Australia for 10 years, he said. If it endangers our great alliances, repair will be difficult and slow. If ... a great burst of inflation and rising prices and costs, the answer will be difficult and slow, and the economic casualties high. You will not be able to indulge in the luxury of second thoughts, or of an early and successful repentance. Put the A.L.P. into power this time, and you suffer the consequences for long after my time or that of my most experienced colleagues. Sir Robert made these promises.  Defence. To provide highly mobile, modern and well-equipped forces, maintained so as to co-operate with Australia's SEATO and ANZUS partners to mutual satisfaction. To provide, in Australia, scientific and technical and production hacking.  Economy. To carry on with the objectives of a high rate of economic and population growth with full employment, increasing productivity, rising standards of living, external solvency and stability of costs and prices.  Development. To press on with growth in no timid or faint-hearted way, seeking to avoid any new cost-price spiral. The Government expected that given good government growth should at least equal a total increase of 25 per cent in the Gross National Product, in terms of constant prices, over the next five years.  The North. To establish a special Northern Division of the Department of national Development to examine Northern projects in consultation with Federal and State Ministers and experts. The cost of transport of materials and plant to the north was one of the greatest burdens on northern development by governments and citizens alike. The government proposed to establish a committee of investigation to examine the problem and report to the Government.  Petrol prices. To effect a change in the petrol price so that no where in Australia will the normal price be more than ... above capital city prices. This would be done by arrangement with petrol companies and by arranging with the States for the Commonwealth to make grants to the States to enable them to pay the appropriate compensation to those companies.  Road Works. To increase Commonwealth aid for roads from the £250m granted in the last five years to not less than £350m in the next five years. To discuss with the States the desirability of setting up a national roads authority.  Trade. To change the name of the Department of Trade to Trade and industry, and create within it a special Secondary Industry Division.  Education. To create 10000 special Commonwealth scholarships to be awarded competitively and tenable at secondary schools for two years, to assist children who might otherwise miss the final two years. The scholarships, up to £100 a year for fees and books and a maintenance allowance to parents of another £100 a year, will be open to students of all secondary schools, State or non-State, without discrimination. Another 2,500 similar scholarships will be open to technical school students.  - To offer the States an annual grant of £5m toward building and equipment costs of technical schools.  - To make available £5m a year to supply buildings and facilities for science teaching in secondary schools.  This will be distributed on a school population basis and will be available to all secondary schools, State or non-State, without discrimination.  Child Benefit. To raise child endowment to 15/ a week for third and subsequent children. To pay 15/ a week on endowment for all full-time student children from 16 to 21, whether they are first, second or third children.  Housing. To give a Commonwealth subsidy of £1 for every £3 deposited at an approved institution by a person aged up to 25 to be released for home building or purchasing on or after marriage. The maximum subsidy for one house would be £250 and the recipients’ savings must be accumulated over a period of at least three years. Through a National Housing Insurance Corporation to help people obtain low deposit loans which would fill the gap between available housing loans and the purchaser’s buying needs. The loans would extend to something like three times the borrower's annual income with a reasonable total ceiling. The Government would up to a high percentage of valuation, 95 per cent in appropriate cases, insure the repayment of the loans by approved lenders at approved interest rates.  Benefits. To increase Commonwealth medical benefits by 33 1/3 per cent without requiring increased contribution to medical benefits insurance funds.  Redistribution. To amend the Representation Act so that no State would lose a seat in the House of Representatives through electoral redistribution. Another amendment, to the Electoral Act, would emphasise to Redistribution Commissioners the extent of their discretion to vary the normal electoral quota up or down, to allow for some variation between compact metropolitan seats and very much larger rural areas.  Trade Law. To legislate to deal with restrictive trade practices and to protect the small trader. A bill providing for this will be introduced into the new Parliament. It will be open for public scrutiny for a reasonable time before the second reading debate is resumed.  Other Points. Sir Robert said he would not have time in the 40 minutes in which he appeared to cover fully all points in his policy, but a full statement would be issued. Points omitted covered decentralisation, oil search subsidies, agricultural extension services, mental health subsidies, old people’s welfare and overseas investment.  Menzies Watches Telecast of Own Election Speech  MELBOURNE, Tuesday. The Prime Minister, Sir Robert Menzies, sat with members of his family and private staff in his suite at the Windsor Hotel, Melbourne, tonight and watched the telecast of his own policy speech. The telecast was made Friday night before a selected audience in the studio of GTV 9, Melbourne. About 300 people from Sir Robert’s electorate, Kooyong, and 12 Federal Ministers were present at the invitation of Liberal Party officials. Sir Robert's speech was the first recorded election policy speech delivered in Australia. He told his staff that he wished to spend a quiet night tonight before starting on his heavy campaign schedule, covering the next three weeks. He arranged for newspaper photographers to take pictures of him before the telecast began. Staff members said later that Sir Robert was quite satisfied with his television effort. The telecast was limited to 40 minutes, because it was thought that this was sufficiently long for a public reaction through this medium. It did not cover the full text of Sir Robert's policy speech, which he will amplify during his election campaign. In New South Wales tonight, 11 television stations carried the telecast. Thirty-five radio stations and 2BL and regional A.B.C. radio stations broadcast the speech.  Menzies Watches Telecast of Own Election Speech  Menzies gives Details of Election Proposals. The choice at the Federal election was particularly important for voters who were under 35, the Prime Minister, Sir Robert Menzies, said last night. Sir Robert was delivering his policy speech over a nation-wide radio and television link. Sir Robert opened his speech by saying: this is no ordinary election. He repeated the Government’s reasons for calling the election and said that on November 30 electors would vote on who was to be in Government, not whether the choice should have been postponed for some months. That no Government can live on its past record is true, Sir Robert said. Yet our future growth is largely determined by the quality of what has already been done. There have, as in all other countries, been fluctuations in our fortunes, but the strong general trend has been upward.  No credit squeeze. Those who seek to make ... with foolish and false talk of another credit squeeze must assume that there is such a violent ... in economic activity as will produce an inflation ... boom. We do not anticipate and such state of affairs. ... remarks addressed to under ... he said. You have, as voters never known a Socialist Labor Government at Canberra. Some of you may, therefore, be ... to fall for old .... It’s time for a change, even though it would be a change back to the very people who were dismissed in 1949. Change is a good thing as long as it is a change for the better. Sir Robert said those who recalled the Labour Party Socialist era of restrictions, attempted nationalisation and the discouragement of enterprise which ended in December, 1949, would not need to be reminded that a Liberal Country Party had:  - Helped to create a revolutionary change in the economic climate, in production, in the growth of trade with the world in living standards, in social services, in providing for health.  - Also created change with free choice of employment, population growth, large savings and large industrial investment, increasing educational opportunities, national development credit and security.  To compare Australia today, under a free enterprise Government, with the Australia of 14 years ago is to pinpoint the most dramatic change and growth to be recorded anywhere in the world, Sir Robert said. As electors you have a great chance to make a change, not by turning away from sound and growing prosperity for new and almost hysterical experiments carried out under the close control of Labour’s outside executive- not elected by you but by giving to the government a working majority. That is the electoral change that is needed. An almost equally divided national parliament is no proper foundation for a stable and positive and authority over you. We leave that to the Socialists whose whole doctrine subordinate the individual to the State. Socialism is in fact both repressive and reactionary. Authority in an Australian Government is what it needs to have when it is negotiating with other countries, whether on political arrangements, or trade, or military alliances or arrangements for the common security. It can derive that authority only from you. Dealing with foreign policy Sir Robert said, We want growth and progress and security at home. For that purpose we need security abroad. We want friends and a defence policy which gets us strength and a true willingness and capacity to co-operate with our friends in the defence of common security."  ANZUS pact negotiated.  Sir Robert said his Government had negotiated the ANZUS pact and had made it clear that Australia would defend Papua New Guinea against attack as if it were part of the Australian mainland. That promise of ours is as a result of ANZUS completely backed by the United States, he said. Yet the ALP has never been enthusiastic about ANZUS. Sir Robert said his government had helped to negotiate SEATO and send Australian forces to Malaysia as part of a Commonwealth Strategic Reserve under SEATO. Since Malaysia had expanded into Malaysia, Labour in parliament guardedly supported the concept of Malaysia, but attached terms to any ... support which it knew to be ... to Malaysia. The pledge the government had given, to join with Great Britain and Malaysia itself to resist armed attack on the political independence and national integrity of Malaysia, had already had a marked effect among Australia's neighbours and allies. It is essential that they should know, as a result of this election, whether the Australian people stand behind our clear-cut statement, or prefer the ambiguous, uncertain, equivocating, fluctuating and almost mumbling attitude of our opponents, Sir Robert said. There is a similar conflict about the establishment of the American naval signalling station at North West Cape in Western Australia. When Labour's outside governing body, the 36, whom you are being asked to vote into power on polling day, met at Canberra to consider this matter it went within two votes of opposing the American proposal outright. The switch of one vote would have warned the Americans off. Finally, a grudging approval was given, but on terms as to control which, as which is well known, but the Americans were not prepared to accept. You must resolve these issues. It is vital that Australia’s foreign policy and relations with foreign powers should be clear and steady, and that the world should know that they are managed by a government which has a clear mandate from the Australian people. That is what we are asking for that, above all, is why we are having an election.  Foreign Policy Issues Stated  Sir Robert said the Government had a notable defence record. It would maintain the armed Forces in such ... as to enable Australia to co-operate with SEATO and ANZUS partners to their satisfaction and its own. ... would provide in Australia at Woomera and in the Department of Supply ... and technical and ... backing. Australia is ready and able to meet its international commitments, Sir Robert said. After dealing the Government’s record in the development of the Armed Services. Sir Robert said: we can look our allies in the face with justice and have no temptation to appease our enemies. He said the objectives of the Government's economic Policy were a high rate of economic and population growth with full employment, increasing productivity, rising standards of living, external solvency and stability of costs and prices. They are being successfully achieved, he said. Indeed our opponents have realised that their prophecies of a depression, unemployment and gloom have been proved false. Having realised that they cannot frighten you they have now decided to try, rather offensively, to buy you.  Economic Rate of Growth. They have made a series of irresponsible bids which would add hundreds of millions to the money in circulation without in any way increasing or cheapening production or supply. In short, they are offering you an inflationary boom of unprecedented .... Sir Robert said that the rate of development in Australia was greater at the end of the Governments 14 years of office that ever before. We believe and confidently expect that over the next five years, good government growth should at least equal a total increase of 25 per cent in the gross national product in terms of constant prices, Sir Robert said. Discussing development of Northern Australia, Sir Robert said the government would establish a special northern division of the Department of National Development. Two special problems in the north were water storage and use and freights. The Government would fully support the Water resources Council. Sir Robert said the cost of transport of materials and plant to the north was one of the greatest burdens on northern development by governments and citizens alike. The Government proposed to establish a competent committee of investigation to examine the problem and report to the Government. Sir Robert said the government would bring about a change in the price of petroleum products (other than fuel oil) so that nowhere in Australia would the normal price be more than 4d a gallon above the level of Capital City prices. We propose to effect this by arrangement with petrol companies and by arranging with the States for the Commonwealth to make grants to the states under section 96 of the constitution to enable them to pay the appropriate compensation to those companies. City prices and those and present with a 4d or smaller differential will not be affected. Turning to the questions of roads, Sir Robert said the government would early next year put before the States proposals on Commonwealth aid to succeed existing legislation which would expire in mid 1964. Under the current legislation a total of £250 m has been granted to the States for roads over a five year period. We intend that over the next five years our contribution will not less be than £350m  National Roads Authority. The Government would propose a national roads  authority try to provide a focal point for the planning and development of comprehensive system and to help in co-ordinating the activities Commonwealth and State Governments in the roads field. The nation would benefit from a thorough going survey and appraisal of the existing roads system and of foreseeable road requirements. Sir Robert said to make clear that the Department of Trade was concerned with tariff policies, trade treaties, and promotion of secondary products, its name would be changed to Department of Trade and Industry. A special Secondary Industry section should be created inside it under a senior official working ... under the ... and secretary to the department. Announcing proposals on education, Sir Robert said: first, there are many good pupils in secondary schools who would benefit if ther were helped the final two schools ... which they might otherwise miss through family circumstances. There are many ongoing technical training. Any scheme which assists a student to carry through a course of technical study for an additional two years would have great national value in these times. We propose to create special Commonwealth scholarships to be awarded competitively, at standards to be worked out with the  State. There will be in the case of secondary schools 10000 such scholarships per year, tenable at a secondary school for two years. They will cover each year payments for fees and books up to £100 a year and a further maintenance allowance to the parents of £100 a year. They will be open to students of all secondary schools, State or independent, without discrimination. There will also be 2500 scholarships carrying the same benefits open to students at technical schools. Second, having in mind the urgency of increasing technical school facilities, we will offer to the States an annual grant of £5m towards the building and equipment costs of technical schools.  Finance for education planned. Third, there is a special need for improved science teaching in the secondary school, if we are to keep in step with the march of science. As some recognition of this need, we will make available £5m a year for the provision of building and equipment facilities for science teaching in secondary schools. The amount will be distributed on a school population basis and will be available to all secondary schools, Government or independent, without discrimination. Sir Robert said child endowment would be raised to 15/ a week for third and subsequent children. Having in mind the education responsibilities of parents, 15/ a week endowment will be paid in respect of all full-time student children from 16 to 2l, he said. This would apply whether they were first, second or third children. Sir Robert said the Government proposed to solve two special housing problems. The first was the difficulty experienced by young married people, particularly in the age group up to 35 in financing the purchase of a home. He said: We will provide a Commonwealth subsidy of £1 for every £3 which a person in this age group deposits or shall have deposited, over a period of at least three years in an identifiable account at an approved institution to be released, upon or after marriage, for home building or purchasing. The maximum subsidy for one house will be £250. Thus by Commonwealth subsidy, £750 saved in this age group for a home after marriage will be increased to £ 1000. For obvious reasons, this will not extend to the purchase of State houses, or for the purchase of house and land costing more than £7000. The Minister for National Development, Sir William Spooner, said in Yass last night that this scheme would apply retrospectively as far as prospective homebuyers' sayings were concerned. He said applicants would have to establish that they were under 35 and married or about to be married, were buying their first home and had been paying over a period of three years into a bank or other savings institution for the purpose of buying a home. Sir Robert said the second special problem of the homebuyer was filling, often on oppressive terms of borrowing, the gap between available housing loans and the buyers need. We must not encourage too much uniformity of dwellings in a refreshingly individualist country. To meet this problem we will assist the obtaining of low-deposit loans related to the income and reasonable creditworthiness of the borrower. We will do this by a system of insurance by a National Housing Insurance Corporation. Loans, the subject of the guarantee, would extend to something like three times the borrower's established income, with some reasonable total ceiling.  Housing Loan Proposals. The Government will, up to a high percentage of valuation, ranging up to 95 per cent in appropriate cases, insure the repayment of such loans by approved lenders at approved rates of interests which, under guarantee, should be reasonable. Sir Robert made these promises on health matters: In view of the medical profession assurance regarding stabilisation of fees, we will increase Commonwealth medical benefits by 33,1/3 per cent. This means that the gap which has to be met by the patient will be reduced by at least 20 per cent. All contributors to medical benefits insurance funds will be entitled to this increase without being required to make any increase in their weekly contribution to the fund. Sir Robert said that under the existing methods of dividing the electorate quota into the population of each State to determine how many seats the State should have in the House of Representatives, growing States stood to lose a seat. The Government thought that was wrong, and proposed to amend the Representation Act to see it did not happen. Another amendment to the Electoral Act would emphasise to Redistribution Commissioners the extent of their discretion to vary the normal electoral quota, up or down, to allow for some variation between compact metropolitan seats and very much larger rural areas. The amendment would provide that they would specifically take into account community of economic, social and regional interests, difficulties of communication, remoteness or distance, the trend of population changes, physical features and the relative areas of proposed divisions.  Restrictive Trade Practices. Referring to restrictive trade practices, Sir Robert said: privately imposed restraints which are against the public interest or submit the small trader to oppressive limitations should be eliminated. After the publication of a broad statement of policy in general terms, the government has held many discussions and has received many criticism and suggestions. I now announce that we will, after the election, assisted by these and any further discussions and suggestions, prepare and introduce into the new Parliament, a bill to deal with restrictive practices and to protect the small trader. After its preparation and introduction, it will be open for public scrutiny for a reasonable time before the second reading debate is resumed. C.P. Policy Announced By McEwen  Shepparton (Vic.). Thursday. The government’s policies clearly showed its objective of growth, the Leader of the Country Party and Minister for Trade, Mr J. McEwen, said tonight. . The Government aimed at essentials, at production from not just words, he said. Mr McEwen was opening the Country Party’s campaign in the Federal election. He said the Labour Party had copied the Country Parry Policy for a lower uniform price for petrol in the country. Opening his speech Mr McEwen said the Country Party and the government were dedicated to continue the development of an expanding nation with a free and prosperous people.  More Vehicles, Production. While the Government had been in office, population had increased by three million; 700000 more jobs had been made available, vehicle production had reached 1000 new cars a day and farmers were producing half as much again. Land, mining and forest industries were thriving, real wealth had been produced and turned into development works. These are not promises for an election, Mr McEwen said. This is the record of what we have done. This is real growth, the result of deliberate, constructive policies. Mr McEwen said the government had declared for its objective a growth to lift Australia's economy by 25 per cent over the next five years. We aim at essentials, he said. A good price in the home market, protection against damaging imports, international agreements, negotiations for markets, strong sales promotion, an unceasing drive to increase efficiency and £9 m a year will be available to pay £3 m a ton subsidy on superphosphate. A complete transformed wool industry in a position to contrive its own policies in which the government would give assistance. Woolgrowers were highly efficient but huge expenditures in research had helped them to come close to doubting their production since the war.  Wool promotion. As a new policy we have accepted a charge of perhaps £5 m a year in matching £ for £ woolgrowers spending on sales promotion, Mr McEwen said. We negotiated the entry of our beef into the American market. Our beef herds are worth more than £100 m above what they would have been worth had we not gained entry into the American market. This is our policy at work. Growth with me is not just for a policy speech, not just a word to get votes. Mr McEwen said that if policies did not influence the location of industry and population, by the time Australia had 20 million people, 10 million would be in Sydney and Melbourne. To the country Party this was intolerable and for Australia it was dangerous.  New States Proposal  The creation of new states in appropriate areas would represent a major contribution to decentralisation. Fourteen years ago only £8m had been granted to the States for roads. Now not less than an average of £70m would be provided each year for roads for the next five year, in addition to money for beef roads. If we are elected, nowhere in Australia is petrol to cost more than 4d a gallon above the city price, and the policy will be the same for kerosene and distillate, Mr McEwen said. I stated my policy on this early this year at Country Party conferences and now Labour has copied it. Mr McEwen said that because they knew it would be bad for Australia, he and his party had opposed a proposal to redistribute seats which would have deprived Western Australia, Queensland and N.S.W. each of a seat and abolished country electorates. The Government would amend electoral Acts to avoid these States losing seats.  Secure grip on Home Markets. Our secondary industries must be secure, Mr McEwen said. To grow and to obtain export markets they must have a secure grip in the home market. We will ensure they are protected, particularly from dumping. We have devoted ourselves to the cause of manufacturing industry. Our policies have provided export insurance, encouraged and subsidised new shipping services to carry our exports, our Trade commissioner Service had extended across the world, trade publicity expenditure has increased by £1m a year, we have effective tax incentives for exporters, trade ships, trade fairs and trade missions. There is real partnership in this country between industries. Secondary industries save Australia foreign exchange by supplying goods which we must otherwise import, but they are also our greatest importers. Primary industries, long our main source of export income, earn foreign change needed by secondary industry, but the primary industries depend for their best market on the employees of secondary industry. Our policies are @ around this interdependence.  Labour Plans Battle Group At Grafton.  Grafton, Thursday. A new battle group of 2000 men to be raised under Labour’s defence plan would be located in northern N.S.W., probably at Grafton, the leader of the Federal Opposition, Mr A.A. Calwell said tonight. He was speaking at an election meeting in the Presbyterian Hall, Grafton, in of the support of the Labour candidate, Mr F. W. McGuren. Mr. McGuren won the northern rivers’ seat of Cowper at the 1961 election from Sir Earle Page, who had held the seat for the Country Party since 1919. Mr Calwell said Labour’s proposal for an additional 14000 men for the regular army included a policy of decentralisation because too much of Australia’s defence system was concentrated in the far south.  Decentralisation Policy. Labour intended placing brigade groups of 6.000 men @ in Queensland, South and Western Australia. Labour’s defence committee, which had drawn up these proposals over the past two years, had pointed out that a headquarters needed transport facilities and water and Grafton would be a logical location. Mr Calwell said that a Labour Government would make a payment at least equal to the unemployment benefit to farmers temporarily deprived of their livelihood by bushfires, floods or drought. Australia was the most centralised nation in the world, Mr Calwell said. Only a Federal Government had power to raise the money needed for thoroughgoing decentralisation.  Petrol Price Reduction. As part of its decentralisation plans, Labour had allocated £10m a year to bring the price of petrol in country areas to parity with city prices. Some days later the Prime Minister, Sir Robert Menzies, announcing a similar plan, had allocated £7m for the purpose. Mr Calwell said that this presumably meant that the Prime Minister's plan allowed for partial parity only. He said a statement last night by the Treasurer, Mr H.E. Holt, that the economy is now running in top gear was a damaging admission that Australia had no hope of doing better. In the September quarter the number of new houses and flats begun had risen by 16 per cent but this was only a fraction more than the number begun in the September quarter of 1960.  Tariff Board Streamlining. Mr Calwell said Labour would strengthen and streamline the Tariff Board to prevent delays in tariff decisions that could ruin an industry. It would ensure that if there was a doubt on whether an industry needed protection the industry would always be given the benefit of the doubt. Labour would not hesitate to impose import controls if other protective devices failed.