The Age, 14 October 1069  Senator Gair outlines party's poll platform  DOUBLE DEFENSE SPENDING - DLP  The leader of the Democratic Labor Party (Senator Gair) last night pledged to double Australia's defense expenditure over the next ten years.  He said present spending on defense was "pitifully small and totally inadequate" compared with that of other countries, especially in the light of Britain's planned Far East troop withdrawal and the "scaling down" of the U.S. commitments in South Vietnam.  Defense occupied the major part of the DLP policy speech made last night at South Brisbane, but Senator Gair also pledged a wide range of domestic benefits, including increased pensions, child endowments, interest-free marriage loans to young couples, and a review of the Commonwealth Constitutions aimed at improving Federal-State financial relations.  Senator Gair said:  The DLP will continue to pursue its defense proposals until they're carried out. These proposals are based on a defense expenditure of six to seven per cent. of our gross national product - this expenditure would, in turn, finance:  1) An adequate system of national service.  2) The acquisition of at least one aircraft carrier and a complete up-dating of our destroyer and submarine requirements.  3) The rapid development of a completely independent capacity to manufacture our own military aircraft. This is possible, and we must gear ourselves to be in a position to export aircraft to South-East Asian countries by the late 1870s when the Mirges and F-llls start to phase out.  4) It will finance the rapid development of our own nuclear power - firstly, for peaceful purposes and secondly as a basis of a deterrent should all attempts at nuclear disarmament fail.  Our defense preparedness is totally inadequate.  INADEQUATE  We find that the United States spends 9.8 per cent. of its gross national products, France 5.3 per cent., Russia 9.6 per cent., China 9.2 per cent., Israel 13.8 per cent., Sweden 6 per cent. and the United Kingdom 7.1 per cent.  Where does Australia stand - just 3.5 per cent - that's the average taken over the past ten years.  This is pitifully small and totally inadequate. So, whether we like it or not, the first thing we must do is to increase our spending on defense.  But what does Mr Gorton do? Instead of recognizing the problem, he cuts the defense budget by 5 per cent. In fact, its an even greater cut, when you take into account the increased rates of pay for the armed services.  We are conscious of the fact that our major defense policies and our domestic policies cannot be presented in theoretical isolation but must rest upon the foundations of a healthy economy.  For what reason, I desire to outline several measures which, within the framework of a policy of full employment, would greatly contribute to price stability:  - The use of monetary, fiscal and other measures open to the Government to prevent the 'overheating' of the economy through excess demand.  - Taxation measures to encourage extra saving.  - A drive for increased exports.  - Productivity wage increases based on a productivity index.  A soundly based economy and. a high rate of economic growth, without inflation, are essential for the type of defense and domestic program which the UP regards as necessary.  PENSIONERS  A further area of neglect is the pensioner and retired person.  The real solution is the introduction of a contributory national insurance scheme to cover old age, retirement, sickness and death of a breadwinner.  But such a scheme would take several years to examine and introduce. In the interim, the UP believes there would be value in commencing to progressively phase out the operation of the means test on certain age groups.  We also believe that pensions warrant an immediate increase to an amount of not less than half the basic wage and that all social service payments, pending the introduction of the DLP's contributory national insurance scheme, should be determined by an independent tribunal of experts.  The time has come for a review of the working of the constitution and this must be undertaken as a matter of urgency.  DECENTRALIZE  It can be done in predetermined stages, the first by the establishment of an industries in a position of fiscal and economic position of the States and the desirability of the establishment of a fiscal equalization committee. State sovereignty must be given a new reality.  The DLP would reduce income and company tax and institute a decentralization tax, to be levied at a flat rate on industrial sites.  This decentralization tax would place the provincial industries in a position of taxation advantage which would compensate for the disadvantages of higher transport costs, &c.  In addition, the DLP proposes that the Commonwealth Bank make available long-term loans at nominal interest rates to finance the moving of existing industrial equipment.  $100 MILLION  Both independent and Government schools require additional financial assistance if we are to preserve the dual system in Australia, and the only real source is the Federal Government.  First, we believe that an immediate additional grant of $100 million be made to the States, for particular use in secondary and tertiary education. In utilizing this grant, priorities should be given to (1) teacher training and salaries, (b) education research, and (c) buildings and equipment.  Second, we reaffirm our support for the payment of an allowance to independent schools for each child in primary and secondary schools, the amount to be equivalent to the average cost of educating a child in a corresponding Government school.  In the social welfare field we believe that greater attention should first be given to the family-man, especially the breadwinner who has a large family but receives a low income.  We advocate:  - Doubling of existing child endowment payments for all children after the second.  - The capitalization of child endowment payments for purposes of housing improvements or additions, as has operated successfully in New Zealand for the past 10 years.  - Restoration of the real value of maternity allowances which have not been increased since 1943.  - Introduction of an interest-free marriage loan of $1000 for all young couples, for a period of 10 years, $200 of the loan to be liquidated on the birth of each child.  Australia needs a permanent secretariat, consisting of State and Federal officials, ready to anticipate and study natural disasters, evolve contingency plans, and act as the coordinating body when asked to.  Developing chaos in the wheat industry must be stopped and this is the DLP program:  - Australia's deliveries to the Wheat Board should be restricted to 30 million bushels annually until the market position improves.  - Any controls necessary to achieve this result should protect the traditional family wheat grower.  - Wheat farmers should be encouraged to diversify their production as much as possible and service facilities should be expanded to enable handling of the alternative produce.  The DLP proposes a further commission to inquire into the whole wool industry of the same kind as the Philp Commission some years ago.  The purpose of the commission would be to plot the course of the industry to the end of the century and in the modern world of new markets and new fiber’s. The establishment of an industry body should be one of the prime matters for investigation.  Bridging finance should be made available in appropriate amounts and in an equitable manner to the industry until a thoroughly researched and accepted plan is devised and adopted.  RETARDATION  The DLP advocates that a fully representative national committee of inquiry be established to investigate the problem of mental retardation in Australia covering:  - the complexity of the problem.  - the intensity of the problem.  - the qualitative extent of the problem.  The DLP will support those university administrations who take necessary action - including the suspension, expulsion or dismissal of student or academic disrupters - to preserve the university as a center of learning.  The DLP proposes that 5 per cent of Australia's total area be declared national parks and scenic areas, which is the minimum area recommended by the United Nations for any country.  We believe that no drilling operations should be permitted on the Great Barrier Reef until it is known without doubt that such work can be carried out without any damage to any part of the reef or any island contiguous to the reef.  ISOLATION IS NO SECURITY: FRASER  The Australian Labor Party's defense and foreign policies would be disastrous for Australia and Asia, the Minister for Education and Science (Mr Fraser) said last night.  Mr Fraser, speaking at an election meeting in Hamilton, warned that Labor's policies would lead Australia into selfish isolation.  They would also encourage isolationism in the United States.  Labor policies would not only convince South-East Asia that Australia was not interested in Asia, but would weaken the ANZUS Treaty, the ultimate shield of Australian security.  Mr Fraser said that the Government's defense policy was based on three elements:  - Increasing strength of our forces inside Australia.  - A determination to cooperate with other countries in the region because there is no security in isolation.  - The belief that other small countries could ultimately need the support of a major power - hence the ANZUS alliance.  Mr Fraser said the Labor Party's policies would make it impossible to pursue these objectives.  "While we look to the day when all Australian troops can be withdrawn, this depends on the progress at the Paris peace talks, on the increasing ability of the South Vietnamese to defend themselves and on the scale of enemy activities in Vietnam.”  "To suggest that all our forces could be withdrawn now because some of the half million Americans have been withdrawn is not realistic.”  "It would involve deserting our allies in Vietnam and the United States without regard to the overall consequences.