Labour government would subsidise interest rates for housing to encourage home-building. Mr Calwell said the Labour Party believed that home builders should pay no more tahn 3,5 per cent interest on their loans. A Labour Government would ensure this rate of interest by subsidising loans on a maximum of 90000 housing units a year. The cost of this subsidy was expected to be about £3 millions annualy.  SLUGGISH DEMAND. Mr Calwell was speaking at Paddington Town Hall in the first N.S.W meeting of his campaig for the Federal election on December 9. Despite heavy rain, more than 800 people attended the meeting and gave him an enthousiastic hearing. Mr Calwell said the subsidy paid would be the difference between the current rate of interest on Commonwealth bonds and the maximum rate of 3,5 per cent which Labour believed home builders should pay. The subsidy would help to reduce the cost of housing finance at the point where a reduction was most needed, in the cost of interest. This reform will help substantially to stimulate the sluggish demand for housing which has distinguished the Menzies rule, and played its part in retarding the growth of the country as a whole, Mr Calwell said. Mr Calwell said that during the 1950’s the rate of housing growth in Australia had been much lower than the rate of population growth. Between 1951-52 and 1958-59 housing growht was only, 74 per cent a year compared with a population increase of more than two per cent. A major reason for this had been the increasingly high cost of housing finance and the low limits on maximum loan avaliable from banks and insurance companies. Mr Calwell said the according to authoritative estimates the rate of housing growth in the first half of the 1960’s was likely to be negible. Without a big reduction in interest rates on housing loans and increases in maximum loans from institutions, the demand for housing in 1965 would be only 93.000 houses and flats a year compared with 14400 completed in 1960.  Strangling Employment. I am determined that urgent steps must be taken to change the conditions causing this sluggish demand for homes, Mr Calwell said. He said housing was not the only problem causing high interest rates. High rates were helping to strangle the advance of production and employment and Labour was determined to break this strangehold. Part of the difficulty was due to the artificial restraints imposed by the Government on ordinary lending through banks. These restraints had led to a vast blackmarket in money at exorbitant rates of interest. Labour would remove these restraints and allow freer flow of funds to bustness and private borrowers through the ordinary banking system. In consultation with the Reserve Bank, we will remove the artificial barriers to bank lending which have caused the growthof the money blackmarket, Mr Calwell siad. This sane and constructive policy will immediately lead to a reduction in the average cost of money throughout the country. We will do more than disturbance in the money markets in recent years has been the Governments own stop-go policy. This has been accompanied by vast swings from pessimism to optimism nad back to pessism agian. This policy has completly disrupted the morale of leaders, partcuraly leaders to the Commonwealth Government. The position has been reached where, except in the period of ever-deepening recessions which accompany the stop-go policy, the Commonwealth Government- the best security risk in the country- is having more and more difficulty in raising money. Demoralised leaders now preferer yields of 2 and 3 per cent on ordinary shares to an investment in the Commonwealth of Australia.  Steady expansion. Mr Calwell said Labour’s policy was completly opposed to stop-go methods. It was for steady expansion. Under Labour confidence in Commonwealth loans would return and the morale of lenders would revive. Labour, in consulation with the Reserve Bank, would use the orthodox and constructive means at its disposal to manege the money markets in order to reduce the cost of money. This will not mean any vast flooding of the money market with cash, Mr Calwell said. That would bring only a return to the Governmenst patron of inflation. It will simply mean that the use of the means at present avaialble for a steady and continued attack on the high cost of money. This is not a policy of wild finance, Mr Calwell said. It is not even a very unorthodox policy. But it is a sound policy. It is a contructive policy, one which is bound to end the dmoralisation of lenders in this country to wipe out the blackmarket in money and encourage the vigorous expansion of production an demployment our country urgently needs.  Promises By Labour Fantastic and Inflationary: Menzies.  WAGGA, Friday. The Prime Minister, Mr Menzies tonight described the LabourParty's Federal election promises as fantastic and said they could be financed only by inflationary means. It was Mr Menzies' first comment on the election policy speech made in Melbourne last night by he Leader of the Opposition, Mr A. A. Calwell. Mr Calwell last night promised that a Labour Government would introduce a benefits program costing between £150 and £160 million a year without increasing taxation. Mr Menzies said tonight the only way the money could be produced was by recourse to Central Bank finance. This was the most inflationary action of all. Mr Menzies said the country man had the greatest interest in the control of inflation and a vested increst in keeping the costs of production down. It there was one sure way to send them soaring it was to let them get out of hand through the offers of people who had a completel irresponsibility as to whether there was an inflationary boom or not. Mr Menzies said it was easy for a politician to make promises if one ran little risk of having to carry them out. It was quite fantastic for a person with any sense of responsibility to talk about finding another £170 million in Government expenditure and of reducing taxation in the same breath.  Attentive hearing. Mr Menzies was speaking at the first N.S.W. meeting of his campaign for the December 9 Federal election. About 600 people at the Plant Theatre in Wagga gave him a quiet and attentive hearing. Mr Menzies said his Government would refuse to regard any Australian industry as expendable during negotions on the European Common Market. We are prepared to take these industries one by one and fight for them through these negotiations, believing we are fighting for their essential prosperity, he said. Mr Menzies warned that it might be difficult for the six European members of the Common Market to concede to Auntralia the right to negotiate as a principal. They would naturally look to Britain as the principal and Australia could be in the position of an on looker. But we will be on the bargaining counter when any negotiations @ affecting our interests, Mr Menzies said. We will be able to make our view known to the European representatives and officials in a reasonably effective fashion. If not, we will be rather noisy. Mr Menzies warned of the dangers of a Labour Government handling what he called the greatest problem I have had to face. The people must think seriously of being asked to hand over these negotiations to people who had no particular interest in or general knowledge of the problems involved. The negotiations would involve continual conferences until the end of next year and men of the greatest expercience were handling them for Australia. You would replace these men with what?" Mr Menzies said, shrugging his shoulders. (laughter).  Tremendous problems. You can be sure you would have one of the people you have just thought of it we are beaten. Mr Menzies said there was going to be some bargaining with each of the six Common Market countries on a literal host of individual commodities. Mr Menzies said his Government was facing tremendous problems and any wrong solutions could cause Australian industries and Australia itself vast harm. Indeed, there were some Australian primary industries such as dried vine fruits, which had been developed on the British preferential tariff. This tariff had given it an assurance and a solidarity in production which  the Government would have to fight to preserve in a chanching world. Mr Menzies said Australia must have people possesing the greatest amount of knowledge and experience to advance advice day by day, week by week, to Britain on Australia’s case. The Government did not believe Britain would go into the Common Market unconditionally. We know Britain will fight for Commonwealth preferences on this matter, he said. But we canot afford to be complacent. Mr Menzien said it would not be easy for Britain to persuade six Common Market countries that the Commonwealth countries should be allowed to come in over a common tariff barrier while others could not. But he was most optimistic about the whole matter provided it was handled properly. These European countries attach great importance to Australia. Mr Menzies said. They do not want to do anything to injure us, we have been receiving a great number of their migrants for us. It is our asset and we must use it. Mr Menzies said the negatiations were at a most delicate stage. The minisiter for Trade, Mr J. McEwen, had developed Australia's export trade on a substantial scale. This was planned on the basis that Australia would not depend on export commodities, the prices of which would fluctuate wildly. Australia had developed one of the toughest groups of commercial travellers known to the world and was now selling in 120 countries. The Government had brought energy, enthusiasm and resource into selling overseas. Yet the Australian people were being asked to dismiss this Government and hand over control of this crucial matter to a bunch of people with no experience whatever and with no particular interest in, or knowledge of, the problems involved. I will leave the answer to the people, Mr Menzies said  Labour to offer Reserve Price to woolgrowers.  A Labour Government will offer woolgrowers a reserve price system and a statutory marketing authority if returned to power at the election on December 9. Mr R. T. Pollard, Australia Labour M.P. for Lalor (Vic.) and Minister fo Commerce and Agriculture in the Chifley Government said last night the woolgrowers would be asked to approve the plan at a poll. In an outline of A.L.P rural Policy, Mr Pollard told a nation-wide radio audience that a Labour Government would also. Reduce interest charges and widen credit facilities of the Commonwealth Development bank. Seek constutional amendments to permit more effective nation-wide ordefly marketing facilities. Review the wheat stabilisation plan when it was expired at the end of the 1962-63 season and make any amendments needed. Restore the £3-a-ton subsidy on superphosphate and related payments on other fertilisers. Reject the Diary Industry Committee’s recomednadtions of abolition of the industry’s subsidy and continue subsidy payments of at least £13,5 milion a year unless a highly unlikely rise in export prices makes such a rate unnecessary. Use import restrictions and tariffs to protect the timber industry and develop the beef cattle industry by creating a Ministry for North Australia and setting up a North Australia Development Commission. The Leader of the Country Party and Deputy Prime Minister, Mr. J. McEwen, will delever the government's rural policy speech at the Star Theatre, Shepparton, Victoria at 7.45 pm. next Monday. Mr Pollard said that the existing, antiquatied wool marketing system must be reformed, because a payable wool price was as urgent for the nation.  Reserve Price Auction System. The A.L.P. believed growers favoured the establishment of a statutory wool marketing organisation, on which growers would have a majority, providing for a reserve price auction system similar to the wartime wool disposal plan. After submitting a draft plan to grower organisations, a Labour Government would hold a poll of growers at which they would be asked to approve or reject it. The Commonwealth Government would guarantee up to £25 million, and a grower levy of 5 per cent would operate while prices did not exceed cost of production. If necessary, the levy would be increased to not more  than 71 per cent. Mr Pollard said that since growers had rejected a reserve price plan 10 years ago prices had slumped and production costs had soared. The world's woolbuying organisations were holding Australian growers and the nation to ransom, and the absence of marketing protection could have cost the nation £500 million. Mr Pollard said that only increased exports of primary, secondary, pastoral and mineral products could solve the grave national problem of overseas balances. In eight years, Australia had accomplished a deficit of £1373 million in its interneational transactions. This enourmous debt had to be paid and the economy reshaped to meet international accounts more promplty. British negatiations to enter the European Common Market on yet undefined terms created a new threat to export trade, Mr Pollard said.  Need To Develop Other Markets. The overriding need is to develop Other markets, especially in Asia, but it would be folly to shut our eyes to the fact that Britain’s entry into the Common Market could create critical difficulties for Australian Primary producers. A Labour Government would not hesitate to provide sufficient subsidies to maintain living standards for those engaged in primary industries and facilitate their products gaining a footing in new markets.  STRONGEST REPORTS ON BRENNER BY SECURITY: DOWNER.  Adelaide, Friday. The security reports on Mr Y.S. Brenner were the strongest he had read in his time as minister for Immigration, Mr A.R. Downer told an election meeting at Stirling West tonight. Mr. Downer was applauded when he said he would have been recreant to the trust reposed in him if he had allowed such a man enter to Australia and teach at an university. He refused to answer a man who asked if he were calling Brenner a spy. Mr Downer had been asked why he had refused Mr Brenner, a German-born Isreali, a visa to enter Australia to become a lecturer in history at Adelaide University. (Mr Downer previously has said Mr Brenner had been barred because he was a strong security risk, but not because he was a former member of the Stern Gang, an Israel terrorist organisation or because he had once applied for membership of the communist Party.) He was asked whether professor W.G.K. Duncan of Adelaide University, had said that generally the Australian Security Service was unreliable. He was also asked what check he had made on reports on people like Mr Brenner. Mr Downer said he did not agree that the Security Service was unreliable. He said that, like every other human institution, the service was not perfect, but he knew something about it because he had had to consider a great many security reports.  No Immigration Without security. No country could run an immigration program without security checks on people applying to enter it. When Mr Downer said he found the situation amusing the questioner said: Mr Brenner does not. Mr Downer: He is a jolly good publicist. It is he who went to the newspapers. The questioner: it was not him it was me. I went to the newspapers, and I am not satisfied with it either. Mr Downer said it was serious if people whom the responsible Minister believed were grave security risks it were to be allowed into Australia. He did not agree that in the Brenner case Australia should have departed from the world-wide acceptance of Ministerial responsibility. He did not think there should be an appeal. No other country allowed such an appeal and he was determined to protect the security of Australia. Some people were seeking to come here from behind the Iron Curtain with the obvious desire of undermining our security. The man who had asked the question said: "Are you calling Brenner a spy? Mr Downer did not answer the question, which was asked several times. New concepts needed for Nation’s problems.  Melbourne, Wednesday. Australia’s enormous problems of trade and defence could be solved only by vital new political concepts, the Leader of the Democratic Labour Party, Senator G.R. Cole, said tonight. Senator Cole was delivering the joint Federal election policy speech of the D.L.P. and the Queensland Labour Party before a crowd of about 3000 people at the Melbourne Olympic swimming stadium. In his speech, Senator Cole:  - strongly attacked the A.L.P. and its leaders and reaffirmed that the D.L.P. would never allot its second preferences to the A.L.P. while it helped Communists.  - Forecast a major breakthrough for the DLP in the House of Representatives and the election of a DLP senator in every state.  - Promised that the DLP would support Australia’s defence and internal security, seek new, expandable markets for industry and restore economic confidence and full employment with a more equitable distribution of the nation’s wealth.  Higher social services. Other points of DLP policy announced by Senator Cole were: social services. Contributory National Insurance, voluntary contributory superannuation, doubled maternity bonus, higher child endowment payments and independent tribunal to fix pensions and pensions for all naturalised migrants. Education: Commonwealth @ to all forms of education and the payment of a student endowment for each child attending a private school. Housing: Ample low-interest housing finance on 95 per cent of valuation up to £5000. Taxation: abolition of payroll-tax, removal of salestax on essential household items and income tax deductions for the cost of travel to and from work, school boarding fees, and hospital and medical expenses not otherwise reimbursed. National development: appointment of a northern Australian development commission to survey resources and plan development and increased migration. Industry: encouragement for industries with export and defence potential, full employment on a wage scale geared to productivity and encouragement of co-operative and profit-sharing. Senator Cole said that both the Liberal and ALP philosophies had failed to provide leadership for Australia. The Liberal Party was tired, apathetic and indifferent to the wishes of the electorate after 12 years in office. But the people could not turn to the ALP because it was dominated and demoralised by Communists and was the gravest possible menace to our international security. The ALP’s way of dealing with Australia’s problems would be the path of treasonous collaborations with the enemies of Australia. Senator Cole said expert world observers had warned that the invasion of Australia by Communist China was only a matter of time. He said the amount spent by the Menzies government on modern arms and equipment was completely inadequate.  Double Armed forces needed. DLP policy was to double the armed forces and re-introduce a national training scheme with an annual intake of @ men, on the assumption that Australia must be strong enough to stand alone against an enemy. Senator Cole said the ALP could not be trusted with the defence of Australia. Its path for Australia was the way of treason adn betrayal. The ALP had become so dominated by Communists and pro-Communists that its defence and foreign policies were indistinguishable from those of the Communist Party.  A.L.P. menace. The ALP stood for recognition of Red China and its admission to the United Nations attacks on SEATO, the withdrawal of Australian troops from Malaya, anti-American and hostility to Japan. Democratic Labour says the ALP today constitutes a serious menace to Australia’s internal security, Senator Cole said. He said the A.L.P. was divided into two groups, the dominant one consisting of fanatical Socialists and Left-wing extremists whose aims were identical with those of the Communists. These men of whom the A.L.P Federal secretary, Mr F. F. Chamberlain. is prophet and spokesman, are happily resigned to what they believe is the inevitable triumph of Communism throughout the world, he said. They are willing indeed eager, to work with the Communists. The second ALP group, having neither philosophy, policy nor conviction, but only an irresistible desire for office, tries in @ to moderate the excesses of the dominant group. Senator Cole said that since the Federal A.L.P. executive repeated earlier this year its ban on unity tickets between A. L. P. Members and Communist, in trade unions, unity tickets had appeared in all Australian States. In Western Australia last week, members of the ALP State executive joined with other ALP members on a circular calling for the election of a Communist, Mr F. Nelson, as Federal secretary of The Waterside Workers Federation. This action was publicly encouraged by the Federal secretary of the ALP, Mr Chamberlain, Senator Cole said.  Chamberlain would rule. A vote for the A.L.P. may return Mr Calwell as Prime Minister, but the man who would rule this country would be a firm friend of the Communists, the A.L.P. Party boss, Mr Chamberlain. We therefore give emphatic no to Mr Calwell's pleas for our preferences, and this must be his answer while his party clings to Communists working feverishly for the destruction of the Australian way of life, he said. Senator Cole said Britain's almost certain entry into the Common Market would seriously affect Australian exports  not only in loss of preferences, but in the creation of tariff barriers. Asia was the natural area in which to seek alternative markets. The D.L.P. had plans for a Pacific confederation of friendly nations with similar political, economic and military interests to those of Australia, which could be bound together by a series of mutually favourable tariff policies.  Group of fanatics- Calwell.  MELBOURNE, Wednesday. The D.L.P.’s only real policy was an insane desire to harm the Australian Labour Party, the Leader of the Federal Opposition, Mr A. A. Calwell said tonight. Those whose only real policy is professional anti-communism deserve no support at all, he said. Mr Calwell said the D.L.P. policy speech could be divided into four parts, two of them stolen from the A.L.P., one meaningless and the fourth scurrilous. There are a few bits and pieces of electoral bait and vague theories which have no meaning whatever as there is no possibility of this group of fanatics ever being called upon to put them into practice, he said.  D.L.P. Vote Goes to Liberals. No doubt Senator Cole hopes to attract some younger voters who do not know the story of how this group, with its real but unofficial leader, Mr B. A. Santamaria, leading from the rear, came into existence. Mr Santamaria did not have the courage to appear on the platform with the front men of the party. However, the young people, and all decent Australians, know that a vote for the D.L.P. can only mean a vote for the Liberal Party and @ and long-sustained unemployment and economic stagnation.