"Socialism" in Queensland (1933)

Pamphlet Review from the August 1933 issue of the Socialist Standard

Distant Pastures Look Green

[Since the following article was written by our Australian Comrade there have been certain changes in the Governments of the Australian States, but this does not invalidate the argument.]

When we were young and our mothers chased us to Sunday School to give the old man a chance to have his Sunday nap after his weary week’s toil, we were taught to sing the old ditty, “There is a happy land, far, far away." Whether or not we sang to help us forget the miserable land in which we dwelt we did not know, but it is amusing to learn that Labour politicians were serving up a political version of that old dirge to the workers in old England at that time in order to catch votes. Like the preachers, the politicians always seem to know of a better world somewhere, but it is never where we are. Therefore we are not surprised to hear that the I.L.P. .was telling the English workers that there is a happy land, way down south, where Labour Politicians have established Socialism—to wit, Queensland.

The I.L.P. for many years has sold a pamphlet entitled “Socialism in Queensland" by S. B. M. Potter, and to show English workers that our Australian pastures were not as green as they were painted in Britain we offer a brief report on the conditions in the I.L.P.'s distant paradise.

On page 3 we are told that a clean sweep had “been made of capitalist governments and that Labour was in office in five of the six Australian States. Since the pamphlet was written there have been elections and, at the present time of writing, there are Labour Governments in New South Wales, South Australia, and Victoria. In Tasmania, Queensland, and Western Australia, the Labour Governments were kicked out. In the Federal Parliament the Labour Party held power, having been swept in on a wave of dissatisfaction against the Bruce-Page coalition Government in 1929. The distribution of the seats may be one factor, but political confusion and lack of understanding is the main cause of the contradictory vote casting. In many cases where a majority of electors send a majority of Labour candidates into the Lower House the same electors send a majority of Nationalist candidates into the Senate. The voting qualifications are the same and the result, consequently, reflects the confusion which exists among electors generally. It is with such an electorate that the I.L.P. claim that Socialism had been established.

The Ryan Government

Mr. Potter refers to the wonderful administration of the Ryan Government in Queensland and stresses the “anti-profiteering" policy embarked upon by Mr. Ryan. Sugar was reduced in price; meat was made cheaper; fish, food in general, and other commodities were reduced in price. When we know that wages are adjusted almost automatically in Australia in accordance with cost of living figures compiled by the Commonwealth Statisticians, all this talk about low price commodities sounds very cheap.

Besides, wherever the Labour Party has indulged in Nationalisation, especially in Queensland, there have been strong suspicions regarding the manner in which the transactions have been carried out. The findings in the Royal Commission on the Mungana Mines transactions confirmed these suspicions to such an extent that Mr. Theodore, ex-Premier of Queensland, was sued by the Nationalist Government for restitution and damages in connection with having enriched himself enormously by the sales of the mines to the State. So glaring were the charges against him that Mr. Theodore had to relinquish his post as Federal Treasurer. His returning to that position before the charges had been dealt with by a court provided an excuse for a section of the Australian Labour Party, who can see the writing on the wall, to get into the Nationalist Party.

But let us glance at a few matters concerning the Labour "Socialist” Government in Queensland which Mr. Potter does not mention. In 1919 the meat workers were on strike and a bitter fight ensued between the meat workers and the meat barons. Did Mr. Ryan help the meat workers during the struggle? When the meat workers began picketing to prevent the scabs from taking their jobs and breaking the strike, Mr. Ryan rushed police reinforcements to the strike centres and the most brutal attacks were made on meetings of strikers by the Labour Government's armed police. The following excerpts from the local Labour paper contain historical mementoes of the occurrences: —

Daily Standard, July 4th, 1919.

Resolution carried at the Returned Soldiers’ and Sailors’ League:—

That we protest against the Police firing into an unarmed crowd on Sunday night last and this meeting demands a public inquiry from the Minister of Justice.

Daily Standard, July 14th, 1919.

One could near small groups conversing about the arrest that afternoon of Messrs. Carney and Kelly, and the Police refused to furnish information or grant bail. Also the fact that Kelly had been taken from a sick bed and thrown into a cold cell.

Daily Standard, July 18th, 1919.

At a meeting of the Railway men last night 500 men were present. The position of the men suspended for refusing to scab was discussed. . . . Much resentment is felt in Union circles over the Government suspending the men for refusing to scab.

Mr. Carney moved

That this meeting of combined W.P.O.s protest against the Hunnish Police methods in the searching of houses and the examining of women and children, particularly regarding the gun raids, and the same be wired to the Premier at once.

It was also decided to take no action in selecting a Labour candidate until such time as an inquiry “be made at Townsville into the police action on ‘Bloody Sunday,' June 29th, 1919." The Daily Standard reports further that “Mr. Bolger considered that the State Government should be informed that its action in sending the police to fight Unionists was antagonistic to Labour interests in Townsville." The reply that the meat workers got from Mr. Ryan, the I.L.P.’s hero, was: “One thing is certain—that the authority of the Executive Government will be upheld." (D.S., July 9th, 1919.) However did Mr. Potter miss these “Socialistic" activities of the Labour Governments?

Let us leave the meat workers and take a trip to the Arbitration Court with the Railway men. In connection with the latter the Daily Standard published the following on September 13th, 1919: —

The Government yesterday made a protest in the Arbitration Court against Mr. Justice McCawley’s decision to fix the Basic Minimum Wage for Railway employees at £3 7s. 6d. . . . Mr. Madsen (for the Government) quoted Knibbs, to show that the cost of living in Brisbane was the lowest on the list with the exception of Perth. ... If the Basic Wage were increased 3s. per week it would cost the State an additional £122,000 per year. ...

Here we have a glaring example of the effect of the low prices on the wages of the workers in “Socialist" Queensland.

On page 6 Mr. Potter quotes the Crewe Chronicle, where it says: . . . “Turning to the railways, Socialistic management and control have proved disastrous." We are not siding with Mr. Potter in his opposition to the Chronicle, but we must point out the error of the latter here. The Daily Standard, October 28th, 1919, reported “Comrade" Fraser's speech thus: —

He said it was a fallacy to say that they could not have high wages and low prices, and quoted instances in the Railways of how men were being paid higher wages than formerly and were able to show lower production costs.

In 1913 the value of output was 1161,560,763.

In 1913 the wages paid were £33,606,087.

In 1914 the value of output was /166,450,508.

In 1914 the wages paid were £34,103,703.

In 1915 the value of output was £169,066,700.

In 1915 the wages paid were £33,210,654.

In 1916 the value of output was £172,574,845.

In 1916 the wages paid were £33,828,840.

In 1917 the value of output was £206,386,646.

In 1917 the wages paid were £36,618,218. 

While the value of the output from 1913 increased by nearly £45,000,000 the advance in wages or labour’s share was only £4,000,000. . . .  A strong Labour Party is the only hope in sight.

Notwithstanding these facts the railwaymen had to fight the Labour Government tooth and nail in an endeavour to protect their wages. Truly, as Mr. Potter says, the men who guided Queensland’s political destinies had an “eye to the future of the State,” but the Queensland workers were overlooked by these

"Socialistic” visionaries of the future.

Railway workers have probably suffered more than any other section of Queensland workers at the hands of the Labour Governments. Although it has been referred to in previous issues of the Socialist Standard we might mention, in passing, the incident of 1927, when the railway men refused to scab on the sugar workers, and Mr. McCormack, then Labour Premier, not only sacked about 11,000 of them, but refused to let them have their jobs back until they signed a declaration that they would not take any such action in future!

Mr. Potter devotes a good deal of his pamphlet to the success of State trading under Labour Governments. Nationalist politicians quote figures just as voluminously to show the reverse. Between Labour and Nationalist politicians figures are distorted for the purpose of bolstering up their cases or knocking down the case of the opponent. Results are what counts .with us, and the conditions of the Queensland workers speak volumes for the anti-working class character of the Labour Party.

The object of Labour administration, according to. Mr. Potter, is to cheapen foodstuffs. Whatever benefit this can be to workers whose wages are based upon cost of living figures compiled by the Government Statistician we have yet to learn. Comparison with New South Wales shows how the workers in the latter State would be in advance of the Queensland workers for seven adjustments out of nine from 1923 to 1928. The index numbers and wages were: —

The foregoing should be sufficient to convince even an I.L.P.'er that “Socialist" Queensland is not such a “happy” land after all.

We who have lived in sunny Queensland have had our minds seared, not by the tropical sun, but by the red-hot attacks of Labour Politicians. It might be alright to put this stuff across Mr. Churchill, who said that Labour was unfit to govern, but when Mr. Potter has had as much Labour rule as have had the Australian workers, he might write in a different strain.

As to the I.L.P., it is their business to find an election cry, and to them one is as good as another, as long as it gets the votes. As for the Socialist Party, we do not potter about with capitalism, we want to end it. All the fanciful pictures of distant pastures leaves us cold. As soon as the workers agree with us and act in accordance with the principles of the Socialist Party, all pseudo Socialism will be abolished along with the capitalist system, by the establishment of a system of society based upon the common ownership and democratic control of the means and instruments for producing and distributing wealth by and in the interests of the whole community.  

W. J. Clarke,

Socialist Party of Australia.

Where the Labour Parties Fail: An Australian Episode. (1934)

From the October 1934 issue of the Socialist Standard

Judging by some of the questions asked by the readers of The Socialist Standard, there are still in existence in Britain and elsewhere a number of people who, while quite genuine in their belief in, and desire for, Socialism, are of the opinion that it can best be achieved by working in, and supporting the Labour Parties.

The following brief account of the history of what is known as the "Socialisation Movement," inside the Australian Labour Party in New South Wales, should be of interest to these readers, and should help to dear their minds on this point and to demonstrate beyond doubt the truth of the position put forward by Socialists.

In order to put the facts dearly before those readers not acquainted with Australian conditions, it is first necessary to indicate briefly the history, objects and organisational characteristics of the Australian Labour Party (A.L.P.).

This organisation first came into prominence after the failure of the great Maritime Strike of 1890, and the Shearers' and Miners' Strikes of the following two years. Having failed on the industrial field, the workers of that time determined to seek redress for their grievances by the Parliamentary method—by the capture and use of political power.

The rise of the A.L.P. and the growth of Australian industrial capitalism (as opposed to the great importing and shipping interests) have been simultaneous and synonymous, the one consistent policy of the Labour Party being high protection for home industries. This policy enabled them during the period of capitalist expansion here, to appeal successfully to the people, exploiting Australian patriotic sentiment and using as their chief bait the promise of high tariffs to the rising manufacturers, and high wages and good conditions to the workers.

It should be thoroughly understood that, unlike the Labour Party of Great Britain, the A.L.P. has no so-called Socialist parties affiliated to it, and the movement here described was an integral part of the party itself.

The A.L.P. is composed of branches of the party proper organised upon the usual territorial basis and of members of trade unions affiliated thereto.

The supreme body of the party is the Annual General Conference held yearly every Easter at the Sydney Trades Hall, but is preceded by two so-called provincial conferences at which representatives of the Metropolitan and Country membership meet separately and discuss the matter to be brought before the Easter Conference. Matters passed by these two preliminary meetings are then considered by the Easter Conference and do not become operative unless agreed to there.

The members of the Central Executive, which is supreme between conferences, are elected by ballot of the branches on a basis of district representation and by affiliated unions according to the trade union groups, the executive officers only being elected by Conference itself.

The party had self-governing sections in all States of the Australian Commonwealth loosely unified by a Federal Executive and Conference representative of the various States, but in practice controlled by Parliamentarians. In the Federal Elections in 1929 the Scullin Labour Government was returned to power with an overwhelming majority, and there began the greatest display of Labour Party political imbecility and impotence ever seen.

The Federal Government was divided into two factions, the majority being supporters of Scullin and the Federal Executive, and the minority, the New South Wales representatives, supporting J. T. Lang and the bureaucracy of the Sydney Trades Hall. Faced with a position which no reform could adjust in a manner advantageous to the working class, they failed even to make a determined attempt to apply their own pet solution, reform of the Commonwealth Bank.

The division within the Party became a complete split and the sorry farce was ended when the N.S.W. (Lang) representatives collaborated with the Nationalists (the Australian equivalent of the Conservatives) and defeated the Government.

At the ensuing elections, December, 1931, the Labourites were overwhelmingly defeated and a breach was left between the Labour Party of N.S.W. and those of other States, which still remains.

The So-called Socialisation Movement.

At the Easter Conference of 1930, due to the efforts of a small group of alleged Socialists headed by Mr. W. McNamara, a resolution was passed to appoint a "Socialisation Committee of Seven" to propagate the Socialisation of Industry.

The Committee was appointed and functioned to such purpose that, at the Conference following (Easter, 1931) resolutions were passed altering the objective of the Party to “The Socialisation of Industry; Production, Distribution and Exchange to exact a pledge to “actively support and advocate Socialisation" from Labour Parliamentary and Municipal representatives (honoured throughout, more in the breach than in the observance); gave instruction to form classes “to study the principles of Socialisation," instructed the A.L.P. Executive that there must be intensive Socialisation propaganda at all times (election as well as other times); and finally decided “That the Conference instructs the Executive, Parliamentary representatives, branches, affiliated unions and individual members to exert their energies towards the accomplishment of Socialisation." Of course, although the word socialisation is used, this new movement never properly grasped the Socialist case, or advocated the Socialist remedy.

On April 4th, 1931, in time for the opening of the above Conference, the Committee published the first issue of its monthly organ, The Socialisation Call, which, ably written and conducted, issued an appeal to delegates to support the Committee; published an article by Labour Senator Arthur Rae, which closed as follows: —

“In conclusion, I would urge that the Socialisation of Industry is a work on which we should concentrate all the energies of our movement, and if the remainder of the platform was relegated to the scrap-heap, no one would be a penny the worse."

The same issue reprinted an editorial from the Labour Daily, which, owned co-operatively by the Trade Unions, but actually controlled by J. T. Lang, is regarded as Labour's official mouthpiece. Extracts from the article, which fairly state its purpose, are as follows:—

“As things are when some of these leaders do have occasion to refer to the objective of the Labour movement, it is with a semi-apologetic air implying that this is something for consideration in the sweet bye-and-bye, and that more important matters require attention. This is a fatal mistake . . . Labour through all its ramifications should take up once more the slogan of 'Socialism in our time.' "

The Committee published also a list of over 100 "Socialisation Units" already formed and particulars of many more in process of formation. In order that readers may clearly understand, it is necessary to state exactly what a Socialisation Unit was. Units were formed in connection with any branch of the party and consisted of those favouring the policy of the Socialisation Committee. They held separate meetings, elected their own officers, held their own funds, organised propaganda meetings, lectures, etc., and generally were, practically speaking, free from the control of the Executive, but responsible to the "Socialisation Committee."

Boring from Within.

It will easily be realised by students of the Labour movement that, in face of such a development within the ranks of the “Social Fascists," the Communists could not remain idle or indifferent. Having tried, without success, for many years to obtain entrance to the A.L.P. as an affiliated body, they have, during recent years, attempted, likewise without success, to influence Labour policy through united front contacts inside the movement itself.

The October, 1931, issue of the Socialisation Call, published on its front page two reports on policy; one afterwards commonly known as the Payne report, the other the Central Socialisation Committee's Official Declaration of Policy. The Payne report resulted from the inspired appointment by a meeting of unit delegates of a sub-committee of three, which was instructed to lay down a principle and policy under five heads: (1) Socialisation; (2) Legislative Council; (3) Free Speech; (4) Food Relief, and (5) Soviet Union.

This report, though carefully written, bore in every paragraph the marks of its Sussex Street (Communist Hall) origin. In rejecting this report and putting forward their own unanimous Declaration, the Committee said: —

“The Committee rejects the report, not because of sentiments of flabby pacifism, but because it believes that the same amount of heroic energy and life that would be expended in the logical and extremely doubtful outcome of such a policy to-day, would, if as self-sacrificingly devoted to the less spectacular and dramatic, but more enduring tasks of solid socialisation propaganda and organisation, bring us to within measurable reach of our objective with far more certainty of ultimate success."

The declaration further issued a warning to the then rising New Guard Fascist Movement, and called upon all sections of the movement to assist in achieving its object, "the next great stage of Humanity's Progress through the Age—The Worldwide Fraternity of Socialist Peoples."

Early in 1932 the Committee and its supporters started a Central Labour College, with classes in Economics, Industrial History, etc., which subsequently spread, with varying success, throughout the suburbs and country districts. In its issue of February, 1932, the Socialisation Call published an article by a well-known Victorian Labour journalist, “ Scrutator," which began as follows: —

“I have been invited by the Editor to say a few words on Labour and Education. A few words! I wish I could crystallise all there is to say on this vital, super-important subject into eight or eighty clauses and induce the organisations to accept them, with the Socialist objective, as the whole Labour platform."

The next issue, March-April, 1932, was a special Easter Conference issue, and contained an article by Mr. J. C. Eldridge, former M.H.R. (member of Federal Parliament), which said: —

“The Australian Labour Party is called upon to justify its existence in the terms of its declared objective or declare itself a bogus institution, and, by proving unequal to the demands now being made upon it, enter upon its decline and ultimate dissolution."

During all this time the official Labour Party, as represented by its executive and the bulk of its membership, had been continuing its work as an organisation concerned about reforming capitalism.

In November, 1930, J. T. Lang and fifty-four other representatives of the A.L.P. had been returned to power in the State Parliament of New South Wales. This constituted the largest majority ever held by a Labour Government and replaced the Bavin (Nationalist) regime. The Labour Government then proceeded to carry on capitalism, to reconcile its promises of employment to the workers with the necessities of its position as a party primarily representing Australian capitalism. On May 13th, 1932, Mr. Lang went out of office, dismissed by the Governor on a technical point.

The Nationalist Party formed an interim Cabinet under the premiership of B. S. B. Stevens, former Treasurer in the Bavin Government. The elections for a new Parliament were held on June 11th, 1932.

During the campaign which preceded this election, despite the Conference resolutions referred to above, not one official mention of Socialism or “Socialisation” was made, either in the policy speech of J. T. Lang, in the election propaganda issued by the central campaign committee or in the proposals of individual candidates. The election was fought on a purely reform policy, despite the propaganda of the socialisation section of the movement.

The result of the elections was a decisive defeat for the Labour Party, and a storm of controversy broke out therein, the majority blaming the "Socialises” for the defeat and vice versa. In the May issue of the Socialisation Call, prior to the events just recorded and immediately after the last Conference, the Socialisation Committee had published a scheme for the co-ordination of the existing units by delegates to Electorate Committees, thence to District Group Councils, who were to send delegates to an aggregate delegate meeting held regularly in conjunction with the Central Socialisation Committee. Later it commenced a drive for the formation of Job and Union Units, and formed an Industrial Socialisation Committee to co-ordinate their activities.

So far this is the Labour Party “Socialises’ " dream; but what followed is the inevitable fate of all such attempts once they challenge the real basis of the Party and the interests of its leaders.

These further developments will be dealt with in a second article.

F. F. W.

(Socialist Party of Australia).

50 Years Ago: Labour Government in Australia (1982)

The 50 Years Ago column from the October 1982 issue of the Socialist Standard

Using “the preservation of Arbitration” and the protection of the living standard as a catch-cry, the Scullin Labour crowd were successful in gaining the confidence of the workers. They began grappling with the problems. It is here we get an insight into the real nature of the “Labour” Party. Under the slogan of “Build up Australian Industries,” benefits were gratuitously bestowed upon the Australian manufacturers, and the workers were callously disregarded.

The tariffs were revised, and more than 150 items were adjusted in the interests of the sections of the capitalist class represented by the “Labour” Party.

. . . But the services did not end here. During the last year of its regime the “Premier’s Plan” was introduced. Under this plan, on the plea of reducing government expense, the wages of public servants were ruthlessly reduced. Pensions of ex-soldiers and old people were chopped by 12½ per cent., and the maternity allowance was cut down similarly. The wages of all workers governed by Arbitration Court Awards were reduced by 10 per cent.

[From an article The Australian Labour Leaders by W. J. Clarke, Socialist Party of Australia, Socialist Standard, October 1932.]

“Labour’s” tragic triumph in Australia. (1911)

From the August 1911 issue of the Socialist Standard

“Labour” Prime Ministers and “Labour” leaders of Australia have been prominent in Great Britain of late, owing to the Imperial Conference and the Coronation. They have fraternised with the Lords of Capitalism and rejoiced at the progress of the “greatest Empire (read vampire) the world has ever seen.” All the enemies of Labour have gathered together to do honour to “these men who have risen from the plough.” Amidst the eulogies of Asquith, Balfour, and the rest of the holy capitalist family, they have toured the country urging the propertyless wage slaves to emigrate to the scene of “Labour’s triumphs,” and so escape from the suffering they encounter here.

 

The fact that a “Labour” Party controls the “Commonwealth,” and is supreme in at least two States, has misled some into following their advice. But these unfortunate workers will have a rude and rapid awakening.

 

The Labour Government in the Australian Privatewealth have a platform which includes the conversion of trusts into State monopolies. Already in the Antipodes, although the population is sparse and the land to a great extent uncultivated, the great industries and services are becoming trustified. That is eloquent of the speed with which the newer lands ore influenced by developments in the old.

The State ownership of such services as are already nationalised has been a mixed blessing to the toilers. New South Wales is the State of Labourism’s greatest advance, yet the capital (Sydney) will be remembered as the centre of the great strike of State employed tramway men for “a living wage.”  State ownership is the refuge of the business men being crushed by the trusts.

 

“A White Australia” is another plank in the Labour platform. They have always had a particular preference for “White Slavery” as opposed to other hues. Yet a “White Australia” hasn’t saved the workers from the ills that affect them in “open door” countries. Sydney, for instance, boasts of slums as hideous as the classic ones of the East End of London. The homeworkers of Sydney are a frightful example of how capitalism crushes women, as well as men, “in the land beyond the seas.”

Employment in “White Australia” is precarious. The "Sydney Daily Telegraph" of May 26 contains the following news:

 “Mr. A Rickard, of Messrs. Arthur Rickard & Co., admits he received a surprise yesterday morning. He advertised for forty-one general labourers in the Telegraph, and before noon he had several hundred applicants. When the office opened at nine o’clock there were dozens waiting and the number increased rapidly; they ran over the premises inside and jammed the door outside. Judging the men as a whole they were of the average hard-working type, and were mostly eager to accept the offered 8s. a day. We engaged 59 men and could have had as many more had we wanted them.”

 This in a country where the cost of living is more than double that in Britain, and where the rise in prices in the last decade bas been phenomenal and is still advancing.

 

The Taxation of Land Values is a prominent feature of the Labour programme. Its existence in the Commonwealth has led to it being boomed here, and in view of Australia being the pet example of the “good” effects of land taxes, it would be well to show their real character and influence.

The great merit of land taxes is said to be the releasing of the land and bringing it within the means of the poor man. But the Labour Premier, Mr. Andrew Fisher, told a deputation from the London Chamber of Commerce that “land sold at prices quite as high as, if not higher than, those realised before the tax was passed,” and the report (Manchester Guardian, 14.6.11) goes on to say that “he asserted that since the tax was passed Australian credit had been higher than for many years before.” In face of the criticism of land financiers he “denied that the tax was intended to he vindictive against anybody.” Plaintively he asked: “Could anything be more offensive than to charge his Government with class legislation?”

 

Whether offensive or not, it is but true to charge them with legislation benefiting the capitalist class. Their tax on land values been warmly welcomed by the merchants and store keepers of Australia (for it means a reduction of taxation to them), whilst the capitalist nature of their rule has been shown to all by their institution of compulsory military service to protect the property of Australian plutocrats from seizure by other nations. Conscription! How well it makes for the liberty of the worker in the “land of the free”! Liberty for the employer but continued slavery for the employed – that is the guiding principle of the Labour policy.

The brutal attitude they adopt towards workmen on strike is an instance of this. The Labour Party have control of the State legislature in S. Australia, and they have had many opportunities to show how they stand toward struggling Labour. At the present time down at Renmark, in the agricultural portion of the State, a fight is being waged by the fruit pickers in the endeavour to make their wages cover the increased cost of living. They have been met with the most bitter opposition of the Growers’ Association – the organisation of the masters. The Government have helped the blacklegs and sent down armed police to protect them. The Adelaide Advertiser published an interview on May 11 with Mr. Verran, the Labour Premier, who said: “There is no doubt whatever about the policy of our Government regarding industrial disputes. We stand straight for Compulsory Arbitration. We have no sympathy with Unions that profess a revolutionary tactical policy. Labour in our State has said the strike is a barbarous, out-of-date method of deciding differences between employers and employees”.

 

“Then what are you going to do to prevent trouble like that being experienced at Renmark just now?” he was asked.

 

“Unfortunately we have no power now,” was the reply. “But since the Federal Referenda have decided that local disputes are to be a State matter, my Government has decided to introduce a Compulsory Arbitration Bill. The principal provision of the measure will be to make every union and every association of employers register under the new law, and the Wages Board’s decision must bet be observed, just as any other law is abided by. Once the two Houses of Parliament say all industrial disputes must be decided by law the striker will be treated as any other law breaker.”

“What about the Right to Strike?” “There is no Right to Strike recognised,” said Mr. Verran. “When a Labour Government is in power it is just as necessary to have law and order observed as at any other time.”

“Then why does not your Government prevent lawlessness at Renmark?”

“We have taken every precaution to see that the law as we find it is carried out. It is not true that we hesitated regarding action at Renmark. The police authorities there have not asked for additional help. Indeed, they have reported that the police are sufficient to cope with any trouble. In spite of that, when we heard that there was likely to be something special happening there on a certain date, we sent two additional mounted police to Renmark. We do not fear any legitimate unionism, but the leaders in the Renmark strike are men with revolutionary intentions, who make no secret of their opposition to Labour. We have no necessity to pander to them in any way and we attack them openly. This class of opposition causes us no embarrassment.”

In the same paper Mr. J. Murphy, the men’s union organiser, says: “The police action is the result of bias against the workers. Ever since the Hon. J. P. Wilson  (Labour Minister) took up his well-known attitude against the workers and the Hon. C. Vaughan (Labour Treasurer) backed him up, the Growers (masters) and ‘scabs’ have been very aggressive, as they know the Government are behind them.” Speaking of the suppression of the men’s meetings he said: “Our men are prepared to continue holding meetings of protest there against what we regard as the Russian tyranny of the Labour Government over this Free Speech question.”

The employers’ representative (Mr. R. Young), interviewed, said: “In future the employers’ association will not employ any but non-union men or free labourers, as they are called. It appears to me that the Growers can get plenty of non unionist hands. My impression is that the Renmark Growers will always win, as they have won three times already, easily beating all opposition.”

The damning indictment of Labourism these facts contain should make the workers ponder over the actions of the British Labour Party. The latter’s praise of their Australian colleagues, in spite of their open hostility to struggling toilers, is but another of their many crimes. The workers of Australia are in the same abject condition that the English toilers stood in in the time of the Tolpuddle martyrs – the days before the Combination Acts.

The Labour Parliament offer the workers Compulsory Arbitration – a method by which the capitalist arbitrator lets the wage-slaves down every time. Compulsory Arbitration is such an overt fraud that the miners of Broken Hill and Newcastle (Australia) suffered imprisonment rather than agree to it.

The lesson for the working class is well pointed by these facts. They can hope for little while means of living are owned by the capitalist class and controlled by their henchmen, “Labour” or otherwise. At the 1911 Annual Conference of the Political Labour Leagues of New South Wales Mr. Verran (who attended) voiced the following sentiment :

“They must be exceedingly careful not to be intoxicated by their own success, and to remember that they were pledged to carry on the same social order as had developed up to the present time”.

A. Cleveland

Notes by the Way: A Spot of Bother for the Dean of Canterbury (1949)

The Notes by the Way Column from the August 1949 issue of the Socialist Standard

A Spot of Bother for the Dean of Canterbury

In that wrongly named book “The Socialist Sixth of the World” the Dean of Canterbury endeavoured to show that all is for the best in state capitalist Russia. On page 212 of the 1944 issue (Gollancz edition) the Dean had something to say about the leaping production of “Socialist” tobacco and cigarettes.

“Tobacco is in demand in Russia as in other lands. The supply was short so long as tobacco was imported. Today the Soviet Union produces its own tobacco, the collective farms of Abkazia grow leaf equal to the finest Turkish brands, and Soviet cigars, an innovation, rapidly find favour. Variety of brands is large and increases. Professor Hanson remarked, as we stood in a tobacco shop in the Crimea, whereas two years previously he had counted a dozen varieties, today he observed a dozen times as many in that one shop alone. In 1937 the Soviet factories turned out 89,000 million cigarettes. The Soviet Union stands second in the world amongst tobacco-producing lands.”

Now read this from the News-Chronicle (24/6/49):

“The capitalist habit of smoking must be shunned by young Russians, says Dr. A. Kuznetsov in a Soviet youth magazine.

“Russian youths, he complains, tend to ‘use nicotine’ more, though they have the brightest of futures—unlike the children of capitalist countries ‘who are led to smoke by hunger, need and despair.’

” ‘In capitalist countries where the entire pattern of life drives a man to narcotics the urge for smoking can be understood,’ says Dr. Kuznetsov. But Russians do not need it. Youth must be instructed in the harmfulness of tobacco.”

Of course we do not know what is the explanation of the Doctor’s attack on smoking by Russians. Maybe the Russian Government merely wants to cut down smoking at home in order to export the tobacco; or perhaps Kuznetsov is only giving his own view and may shortly “confess” that he is a fascist-capitalist propagandist. Until the matter is straightened out the Dean will be wondering whether he ought to go on singing the praises of Russian tobacco or whether he should just cut the passage out of his next edition.

* * *

How much Unemployment is necessary to Capitalism?

An argument is going on about the amount of unemployment necessary to compel the workers to work harder. The Labour Government’s view was and presumably still is that the present condition with relatively little unemployment gives maximum production. Nevertheless all the Ministers keep on making speeches about the necessity of getting more production.

The Economist representing the tough capitalist viewpoint has long argued that unless there is a considerable amount of unemployment the workers won’t put their backs into it. In the issue for 4th June, 1949, the Economist repeated this: “As the Economist has said more than once in the past, full employment will not work without a million unemployed.”

The Economist returned to the subject in the issue of 9th July, 1949. The Economist urged the Labour Government to recognise and act on the overriding necessity of cheaper production, and said that if the Labour Government was alive to the urgency of the problem “it would insist on payment by results in every industry where a scheme could possibly be introduced. And if there were no other way of persuading the unions and their members to give value for money, it would welcome the therapeutic effect of a moderate degree of unemployment.”

The same article disclosed another interesting aspect of the capitalist attitude to the Labour Government— they think the Labour Party can put the screw on with less trouble than could a Conservative government:

“One must hope that the Labour Party will screw up its courage to undertake something of this order—for if anybody else has to do it, there is risk of serious civil commotion.”

* * *

The Capitalist Cycle : War—Trade War—War.

“Washington, Thursday.—Mr. Willard Thorp, Assistant Secretary of State, said today: ‘ Rivalries and conflicts are again beginning to appear in the world trade picture.

” ‘Some nations and interests are seeking to take over particular markets and exclude competitors.

” ‘The post-war honeymoon in international economic relations is drawing to a close.

” ‘The U.S. has made efforts to put Germany and Japan on their feet again. But those efforts conflict with the hopes of people who wish to prevent the return of those countries into the foreign trade field.’:—Express News Service.” (Daily Express, 26/6/49.)

* * *

The Workers and Nationalisation.

When the advocates of Railway Nationalisation first started their organised propaganda the chief emphasis was laid on the argument that Nationalisation would eliminate waste and overlapping, lead to economies and reduced staffs and thus provide efficient and cheaper transport. As this was not much of an inducement to railway workers propaganda turned more towards the alleged benefits nationalisation would bring to the workers.

Now that the railways are nationalised and are running at a loss the demand has gone forth for economies so that the losses can be wiped out and a profit realised. One of the Labour M.P’s, who supports railway nationalisation, Mr. Ernest Davies (Enfield), wrote to the Times (8/7/49) agreeing with another correspondent who had said that “the most hopeful source of substantial and lasting economies in the working of British Railways lies in a reduction of the total wage and salaries bill,” and that if the average wage rate is to be maintained, man-power must be reduced.

Where Mr. Davies differs from the other correspondent. Dr. Gilbert Walker, is that he does not think it possible to cut labour costs now, it must wait until the Transport Commission has complete control of the whole of the rail and road transport system of the country.

We can leave those two disputants to argue about the best way of running capitalism but the railwaymen may well ask what they have got or will get out of nationalisation.

As a footnote we may add the following:

“Tokio, Tuesday.—The Japanese State Railways today began distributing dismissal notices to another 63,000 railway workers.” (Daily Mail,13/7/49.)

* * *

Cripps on the Standard of Living.

“The Chancellor declared that for the greatest proportion of the population we had today a better standard of living than ever before. It was fantastic to say that they were worse off.” (Daily Herald, 19/5/49, report of Cripps’ speech in House of Commons.)

* * *

Drastic Strike Powers used by Australian Labour Government.

The Australian Labour Party, administering capitalism in Australia, has got into the same kind of mess as its companion party in Britain. The coal miners having made claims for shorter hours and higher pay to the Arbitration Tribunal decided to go on strike without waiting for the award. This the Government holds to be illegal and amidst a familiar denunciation of Communist agitators it took legal proceedings to freeze the funds of the Miners’ Federation.

The following is from the Times (15/7/49):

“From our correspondent, Sydney, July 14th.— Four hundred police, including more than 200 from Sydney, are tonight spread out over the coalfields as a protective force for tomorrow, when an attempt is likely to be made to move large stocks of coal standing in trucks on the coalfields to help maintain Sydney’s lean electricity and gas ration.

“There are now six union leaders in prison, including William Parkinson, acting general president of the Miners’ Federation, and Morris Michael Fitzgibbon, secretary-treasurer of the southern miners’ district, who were both sentenced today by-Judge Foster to 12 months’ imprisonment with light labour for contempt of court by failing to produce £A4,200 withdrawn from the bank and intended to aid the strikers. Parkinson had been acting president for only a day having been chosen when the president, Idris Williams, was sent to prison.”

One Feature of the Australian Strike Deserves Notice. 

Here the Government and the Press denounce strikes because they are “unofficial.” The Australian strike is officially conducted by the Union—but it is condemned just the same.

* * *

Food Production—What Could be Done.

The following news item from Rome is taken from a Report submitted to member governments by the United Nations Food and Agriculture Organisation:

“World food production could be almost doubled in ‘a relatively short time’ by the use of modern technology.

“This estimate is made in a report of the United Nations Food and Agriculture Organisation issued here today.

“Unexplored stretches of sea await the application of modern fishery methods to unlock new food resources, it said.

“World livestock could be stepped up by at least 25 per cent, in ten years through the general application of modern breeding methods.” (News Chronicle, 13/7/49.)

Edgar Hardcastle 

State Banking in Australia (1934)

From the July 1934 issue of the Socialist Standard

Another Quack Remedy 

In the Glasgow Forward (October 21st, 1933), Tom Johnston takes G. D. H. Cole to task for omitting to mention the results of State banking in Australia in his recently published work, “What Everybody wants to know about Money."

As Mr. Johnston seems highly incensed at this omission one would expect that he would have supplied the deficiency and would have tried to show what good things State banking has achieved for the workers of Australia. But Tom deserves the carrot for modesty, for he does not even attempt it. For the benefit of those workers who are always being lulled to political sleep by references to Australia's magnificent “socialistic" examples, let us speak for ourselves. First let us give a few facts.

The biggest State-controlled Bank in Australia is the Commonwealth Bank. It was established in 1911 and has been a profitable concern for the Government ever since. Up to the 20th anniversary the aggregate profits were: —

General Bank  . . .        . . . £6,943,942 11 9

Savings Bank  . . .        . . .   2,781,995 19 9

Rural Bank  . . .        . . .      328,078 11 2

    Total                              £10,054,017    2    8

These figures are exclusive of the note issue branch. These profits have been distributed as follows: — 

To Capital Account       . . .  £4,000,000 0 0

Reserve Fund . . .   . . .            1,406,580 13 3

Rural Bank Reserve . . . 164,039 5 7

Savings Bank Reserve . . . 658,382 3 10

National Debt Sinking Fund 2,660,975 14 5

      Total                                 £10,054,017       2    8

These figures are from the Commomuealth Year Book and Labor Daily Year Book. They show that nearly one-third of the profits went into the National Debt Sinking Fund.

A common claim made on behalf of the Bank is that the profits go to lighten the “people’s burden" by helping wipe off the National Debt. But that is the crux of the whole matter, how does wiping off the National Debt help the workers. Reducing the National Debt reduces the amount of interest payable to bondholders, and thus enables the Government to reduce taxation. Reduced taxation, however, does not help the workers, but only the propertied class. What the workers get is their wages. If, owing to reduced taxation, the workers' cost of living is reduced, their pay is reduced likewise. It is on that rock that all the reformist schemes for bettering the workers’ condition under Capitalism are wrecked. As a prominent advocate of debt reduction by means of a capital levy (Mr. Pethick Lawrence) once admitted, it was merely a redistribution of wealth among the wealthy only.

If therefore State banking is a success it is as an adjunct of Capitalism. According to Senator Barnes, Labour Party, “The Commonwealth Bank has made a profit of 31 million pounds since its establishment." (Melbourne Herald, February 5th, 1934.) In the book of the Commonwealth Bank (an official publication by C. C. Fawkner) we are told that “The bank's policy was not to enter into aggressive competition with the existing financial institutions, and this was shown by determining the rates of interest on fixed deposits at ½  per cent. below those quoted by the leading trading banks." (p. 42.) And so that our masters could facilitate their business, “the rate fixed (for overdrafts) by the Commonwealth Bank had a marked effect in keeping down interest rates, to the benefit of the commercial mid business community throughout Australia." (p. 42.)

Some of the chief functions performed by the Commonwealth Bank have been Raising War Loans, Financing Naval Projects, Building Railways, Financing War Expenditure, Financing Pools for wheat, wool, etc.

Bank Loans to House Purchasers

One of the main functions of the State Savings Bank (Victoria) was the financing of home-building under what is known as the Credit Foncier system. Under the_Act of 1920, authority is given to the Commissioners to purchase and build houses for persons who have an income of not more than £400 per annum, and who do not own a house. The limit is, if the house be of wood, £1,000, and of brick, stone, or concrete, £ 1,300.

The interest charged was 6¼ per cent., and the terms of payment allowed for the paying off of the house in 26 years. The funds for this branch of the Bank's operations were raised by the issue of Credit Foncier Debentures, which were guaranteed by the Government of Victoria.

The net profit for the year 1928-29 was £34,032, and for 1929-30, £24,591. These profits are allocated for the purpose of meeting any losses that may occur. Savings Bank debentures pay 5¼ per cent. (1940) and 4½ per cent. (1936). The interest on these debentures comes out of the 6¼ per cent. paid by the workers who are purchasing their homes, and should this source fail, the Government foots the bill.

“Of the 46,100 loans in the Credit Foncier Department 58 securities were in the possession of the Bank at June 30th, 1930, on which the indebtedness was £34,183. To September 11th, 1930, 22 of these had been sold, reducing the number to 36 and the amount to £19,847. During the year, 86 properties were sold for £65,876, and resulted in a small loss (£1,412), but an amount of £1,162 which had been written off in former years, was recovered.” (Victorian Year Book, 1929-30.)

As the depression became worse, the number of houses reverting to the banks owing to the inability of the purchasers to keep up their payment increased rapidly. In 1930-31 the number in possession of the Bank at June, 1931, was 315, about seven out of every 1,000.

So great did the number of reversions to the Bank become that the figures were conveniently concealed from the public by not being published in the annual reports; Some idea of the huge increase can be gained when it is learned that a separate department was set up in the Bank to cope with it. Besides, owing to the inability of the Bank to dispose of many of the re-possessed houses, it was deemed wiser to leave the tenants in charge rather than risk the deterioration which accompanies an untenanted dwelling. Inquiries at the Bank reveal a reticent attitude with regard to particulars pertaining to this side of its activities.

In South Australia a similar position obtained.

Just prior to the depression the Board of Management of the State Bank of South Australia reported "that for the year ended June 30th, 1928, 106 houses reverted to the Bank through tenants being unable to continue payments or through their vacating premises because of inability to pay. The properties are now being sold by the Bank. The number of reverted properties for the previous year was 78.” The position in South Australia is said to be even worse than Victoria! !

In New South Wales, owing to political tactics by both State Labour Government and Federal Nationalist Government, the State Savings Bank had to close its doors altogether, and the business was taken over by the Commonwealth Bank. Pending an agreement being arrived at as to the terms of taking over, many depositors were forced on to the dole.

The foregoing facts could have been easily obtained by Mr. Johnston had he any desire to show some of the “results of the State Banks in Australia.” Mr. Johnston has a lot to learn about State Banking in so far as it affects the working class.

Let us ask Mr. Johnston a few questions. .

In what way do the floating of war loans, the financing of wheat pools, the building of State Railways, and the granting of big overdrafts at low rates of interest, improve the position of the working class ?

How much better off are those workers who began to purchase homes under the Credit Foncier System only to lose them (as they would have, had they bought them off private institutions), when the depression deprived them of their jobs?

Is not the. abolition of the Capitalist system and all its appendages more in keeping with working-class interests, and would not the Johnstons, the Coles, and others of their ilk, be better occupied in helping to establish Socialism? We know that the whole Capitalist system, including the banking system, has got to go before the workers come into their own. And with all due modesty we say to Mr. Johnston, "It's never too late to learn.”

W. J. Clarke

(Socialist Party of Australia.)

50 Years Ago: Does capitalism need the House of Lords (1977)

The 50 Years Ago column from the October 1977 issue of the Socialist Standard

For years we have warned the workers against the danger of Labour Governments. Capitalism can be administered, as regards essentials, only in one way—the Capitalist way . . . The Queensland railwaymen [employed in a nationalized industry] tried to help some workers who were on strike in the sugar industry. The “Labour” Government met this sympathetic action by dismissing the 11,000 railway employees, and was able to force them to desert the strikers and go back to work. Thus Queensland is vindicated as a territory which is still safe for Capitalism.

#    #    #    #

For those who imagine that the existence and powers of a House of Lords are questions of first-class importance, it is useful to remember that Queensland long ago abolished its Upper House. When it is necessary to crush revolt among the workers, a single chamber in the hands of a “Labour” Government in Queensland can be as drastic and as brutal as anything England or the U.S.A. can show, and what is of more importance from a Capitalist standpoint, it can act so much more promptly than can a cumbersome two-chamber system.

[From an editorial "Capitalism in Queensland—Ferocious Labour Government". Socialist Standard, October 1927.]

Under the Southern Cross. A Letter from Australia. (1931)

From the March 1931 issue of the Socialist Standard

To those workers in the Old World who obtain their ideas of life under the Southern Cross from school primers and entertaining magazine articles written by Capitalistic globe-trotters, Australia is depicted as a land of wealth and wonder, a semi-tropical and tropical paradise, a land of opportunity for all. Mention of Australia to many in the Old Country begets romantic visions of verdant pasture lands, vast goldfields, gigantic sheep and cattle stations, and a golden sun forever setting on a happy and prosperous population. Lured by attractive stories peddled by professional tale-tellers in Australia House and other Immigration Bureaux, thousands of workers have sought to escape the sordidness of Old World Capitalism in the New World “down under.”

In the early days of the pioneers certain opportunities existed in this country for the strong, energetic individuals who were prepared to battle with Nature and win the wealth from the soil and the mineral deposits. But times have changed, and the blighting hand of capitalism has obliterated some of the prettiest beauty spots and established in their place modern cities, containing all the incongruities of civilization. Murky channels have replaced sparkling streams; drab wharves and factories, warehouses and railway sidings have superseded grassy slopes and shady trees which once bordered the banks of the rivers. In place of the primitive system of society there has developed, as in the older countries, the complex system of capitalist society, with all its institutions.

How have the workers of Australia fared under these changing conditions? A brief survey will enable overseas workers to understand the conditions of the workers in this “land of opportunities.”

Wages Falling.

During recent years there has been a definite downward trend in the wages and standard of living of the workers here. In 1928 the Waterside Workers had their wages reduced, and conditions which had been strenuously fought for in the past were wiped out by the stroke of the pen of an Arbitration Court judge. Later the Timber Workers had to resist an attack on their wages and conditions of employment. Reductions running as high as 26s. per week, were imposed, and after a bitter struggle, during which many were jailed and more were batoned and bashed by the police for interfering with blacklegs, the Timber Workers were forced to capitulate. The miners of New South Wales were next attacked, and although they stood out solidly for fifteen months, during which time some of their number were shot dead by the armed thugs of the Capitalist class, they had finally to accept a 12½ per cent. reduction in wages. The irony of the defeat was that they had to surrender after they had helped to return the Labour Party to power, which party had made all sorts of promises to the miners during the election campaign. In almost every other branch of industry wages have been reduced and conditions worsened. To-day there are approximately 200,000 unemployed workers in Australia. So much for the conditions of the workers in the country which perpetually boasts of its incomparable standard of living.

The Australian Labour Party.

Time and again this Party has sat on the Government benches, and at the present time we have a Labour Government in the Federal House, and one in New South Wales, Victoria, and South Australia.

Under the Hogan Labour administration in Victoria, members of the Waterside Workers’ Federation were shot at and one killed, in 1928. Unemployed workers have been batoned and jailed. The wages of public servants, railwaymen, and others in Government employ have been reduced by order of the Government. Wholesale scabbery has been sanctified, and trade unions have been smashed under the regime of the Labour “stalwarts.”

Similar activities have been engaged in by the Labour Government of South Australia. Almost the first thing that the Lang Labour Government in New South Wales did on its taking over last month was to baton the unemployed, to whom Mr. Lang and his henchmen had promised the millennium. Mr. Lang recently purchased a most beautiful yacht, and some unkind critic suggested that he intends to use it as a means of escaping the sordid results of his own administration.

The Federal Labour Government is in a terrible dilemma. Having stated that they could run the system in the interests of all sections of the community, they now find that Capitalism can be administered in one way only, viz., in the interest of the Capitalist class. Every act they pass, and every move they make accentuates the position. Faced with the greatest depression in years, they have embarked upon an economy campaign which is resulting in thousands of workers being thrown out of their jobs. Their star contortionist, Mr. Theodore, has been tripped by a Royal Commission, which found him guilty of grave offences against the Capitalist class. This gentleman now knows that while the Master class does not mind what a Labour Politician takes from the workers, that class will not stand any interference with their own property. Owing to the finding of the Royal Commission, Mr. Theodore had to stand down from his position as Federal Treasurer, and most of his old friends now look askance at him. While the workers’ wages are being reduced, the Labour Prime Minister, “Jim” Scullin, is touring Europe attending to the affairs of the Australian Capitalist class.

The Communist Party.

This confusing gathering of self-styled revolutionaries presents the sorriest spectacle in Australian politics. For years it supported the anti-working class activities of the Labour Party, on the grounds that the workers would learn by experience. After denouncing’ the Labour Party as a reform party, it decided to run its own candidates in the last New South Wales elections. Putting forward about fifty-two candidates, they went to the electors on a Communist Reform Platform. Among their reforms were to be. found the following :—

• Work or maintenance for the unemployed.
• Equal pay to women and youth for equal work.
• The unrestricted right to organize and strike.
• Abolition of all wage taxes and all in come taxes on incomes under £400.
• Agricultural labourers and all poor and middle farmers to receive the basic industrial wage.
• Special grants of money for strike funds and for the relief of strikers and their dependents.
• In office, the Communists will attempt to disarm police and Capitalists, and organize an armed workers’ militia.
• Wage mass drives in defence of the Soviet Union, Hands off India campaigns, in defence of the Chinese Revolution.
• Repudiation of all War Debts, etc.

(C.P. Election Manifesto, N.S.W. elections, November, 1930.)

There you have the “revolutionary” aims of the self-styled “vanguard of the working class.” Attached to the Communist Party are dozens of other still-born children of the Russian Revolution. There is the Militant Minority Movement, the Young Communist Movement, the. I.C.W. P.A., the Friends of the Soviet Union, the Rank and File Movement, et alia. A meeting of the Communist Party is held, and there we find all the leading emancipationists. A visit to the M.M.M., and here we find the same faces with different official names. A walk into the I.C.W.P.A. meeting, and here they are again ! A peep into the meeting of the F.O.S.U., and once again we see the old familiar faces. The workers are slogged with slogans, confused with a myriad forms of organization, and misled by a million different ruses.

On the Committee of the I.C.W.P.A. are Labour Party politicians, yet the Labour Party jails the men whom the I.C.W.P.A. is attempting to get out. Unlike the pussy in the well, they are put in and pulled out (sometimes) by the same gang.

All the aforementioned Communist groups are out to usher in, like a thief in the night, the “dictatorship of the proletariat.” Anybody who refuses to follow their dictates and declines to have his or her head bashed in by the bobby’s truncheon is labelled a “defeatist” by these fanatical followers of the “new line” from Moscow.

The Socialist Party of Australia.

Our Party is gradually making itself felt amongst the workers. Small in numbers, and hampered by the confusion created by the Labour Party and the Communist Party, we find it difficult to keep afloat in the political maelstrom. Having Socialism for our objective, we do not expect, nor do we receive, any assistance from the Australian Capitalists or the Russian Capitalists. Nevertheless, we continue with our propaganda, holding our meetings and lectures when circumstances permit. Unemployment amongst our members has prevented us from getting out our Official Party Organ. Lack of finance is also a factor in the non-appearance of our paper. Without this latter we are seriously handicapped, but we are optimistic. The development of Capitalism in Australia is quickening, and we are development of Capitalism in Australia is quickening, and we are convinced that, when we are able to place our position fully before the workers, our efforts will not have been in vain. In spite of all the present drawbacks, we look to the future with hopes of success.

As soon as funds will permit and circumstances warrant it, we will run candidates during future elections and, despite the jibes of our opponents that the majority of the workers will never understand Socialism, we pin our hopes on the working class.

W. J. Clarke

(For the Socialist Party of Australia)

The Australian Labour Leaders. (1932)

From the October 1932 issue of the Socialist Standard

Whom do they Serve?

In analysing political activities, one cannot place the critical finger on every economic detail underlying the legislative enactments of the various political parties. To those who recognise the connection between economic interests and political parties there is, however, sufficient general data available to allow of the tracing back, over a period of time, of the interests served.

As the accumulation of this data is not always possible until the political scene is almost completely changed, the analysis must, to a certain extent, lag behind the main events. But once having discovered the source of action, we can follow its flow through the medium of statistics, Parliamentary reports, and Press statements concern ing the matters under review.

Due to the inherent contradictions of capitalism, the position in Australia, as in most countries of the world, became acute in 1929. The national income fell from £650 millions in 1928 to £564 millions in 1929. While the total revenue from taxation for the Commonwealth and the various States amounted to £88¾ millions, the interest on the National debt runs into £55 millions per annum and all other expenditure, excluding Railways and Tramways, amounts to £42 millions. Every State Government and the Federal Government shows a deficit. Loans were maturing and with falling prices, due to “over-production,” the prospect was not pleasing to the capitalists of this country. Each section was fighting frantically to save itself by political wire-pulling. But taxes had to be found and the Bruce-Page Nationalist Government decided to place the burden on the moving picture interests. The latter had sufficient support among the Nationalists to bring about the defeat of the Government.

A “Labour” Government Returned

Using “the preservation of Arbitration” and the protection of the living standard as a catch-cry, the Scullin Labour crowd were successful in gaining the confidence of the workers. They began grappling with the problems. It is here we get an insight into the real nature of the “Labour” Party. Under the slogan of “Build up Australian Industries,” benefits were gratuitously bestowed upon the Australian manufacturers, and the workers were callously disregarded.

The tariffs were revised, and more than 150 items were adjusted in the interests of the sections of the capitalist class represented by the “Labour” Party. Here are a few of the most glaring examples of the safeguarding of markets for the local manufacturers : —

Here we see the enormous market thrown open to the interests served by the Labour Party. But the services did not end here. During the last year of its regime the “Premier’s Plan” was introduced. Under this plan, on the plea of reducing government expense, the wages of public servants were ruthlessly reduced. Pensions of ex-soldiers and old people were chopped by 12½ per cent., and the maternity allowance was cut down similarly.

The wages of all workers governed by Arbitration Court Awards were reduced by 10 per cent. In some of the State concerns pay was cut down by 22½ per cent. In addition, rationing was introduced in almost every Government and private concern, and unemployment increased rapidly. Although many Trade Union officials had backed the new tariffs, no protection by legislation was given to their members, and many of the industries served by the Government’s policy took advantage of the depression by further fleecing their workers. The Arbitration Court, which Scullin said would protect the living standards, was used as a means to brazenly filch gains bitterly fought for in the past.

The Position Grows Worse

With hopes of strengthening the position of the Government financially, Mr. Theodore had made several attempts to introduce his monetary schemes. An attempt to establish a Central Reserve Bank was frustrated by the Private Banks through the Nationalist Party. A twenty million pounds fiduciary note issue was also blocked. In the mean time, Lang, in N.S.W., was endeavouring to serve the local manufacturers by the introduction of the “Lang Plan.” Anticipating constitutional difficulties, he managed to get two new Judges on the High Court bench, from whom he expected return favours. Striving for power in the Federal arena, the Lang Labour Party ousted the Scullin-Theodore Federal Government. Challenging the latter on the distribution of unemployment relief in the Theodore electorate, they moved on the matter in the House, and with the support of the Nationalists the Scullin crowd were defeated. At the ensuing election, the Nationalists, under their latest nom-de-politics, the United Australia Party, were returned by an overwhelming majority. The U.A.P. is composed of all sorts of political junk, including Labour rats, such as Lyons and Fenton, and Wm. Morris Hughes is back in the fold.

The U.A.P. immediately began to serve their capitalist backers by undoing the legislation introduced by the Labour Party in the interests of the rival capitalist interests which back them.

Following on the wage reducing policy of the Labour Party, the U.A.P. has introduced the “Experts’ Plan,” which goes much further than the “Premier’s Plan.” And the game goes on. In Victoria the Labour Party, after an ignominious period of office, split, went to the polls, and was defeated. In N.S.W. the Lang Party, rather than withdraw a circular which was no longer necessary once the Mortgage Bill was through, gave the State Governor the excuse for dismissing the Government. Here also the State Labour Party was defeated by the combined forces of the Federal Labour Party and the U.A.P. In Queensland the Labour Party managed to scramble back in spite of a redistribution of seats brought about by the Nationalist Party.

Where Do The Workers Come In ?

Through all the political shuffling the conditions of the workers have become terrible indeed. 400,000 unemployed eking out their existence on a dole from 5s. per week for single men to 21s. per week for families of ten !

And yet the workers return parties pledged to maintain this sorry state of affairs. If we look for the reason it is not hard to find. Members of the Labour Party and of the Communist Party claim that the blame rests with the “leaders,” who have betrayed the masses. This is simply another way of stating the actual fact, viz., that the workers willingly placed their trust in men instead of principles. Did the workers understand their class position and act accordingly, all the leaders in the world would make no difference, because the workers would not blindly follow as they do now. When the workers understand that their slave condition is inseparable from capitalism they will know what to do with both capitalism and “leaders.” That understanding can come only through a knowledge of Socialism, and until they are organised in a Socialist Party in sufficient numbers to institute a change, poverty will prevail, the conditions of the working class will become worse, Labour Parties will continue to represent capitalist interests and anti-working class parties will have the power with which to keep in subjection the working class. Workers, what are you doing about it ?

W. J. Clarke,

Socialist Party of Australia.

When Labour Rules (1995)

From the September 1995 issue of the Socialist Standard

People in Britain haven't seen a Labour government since 
1979. Which means that those under 30 have had no direct
 adult experience of how Labour rule is no different from that
 of any other government. But workers in other countries
have experienced Labour governments more recently, in 
Australia and in New Zealand. Here a Socialist from Australia sets out the pro-capitalist record of the various Labor
Party governments which have been in power there since
 1983. It will make edifying reading for those who entertain 
illusions about what a Labour government in Britain would,
 or could, do. Next month a Socialist from New Zealand
 writes about how the Labour Party there imposed austerity while in office.

December 1972 saw Gough Whitlam become the first Labor PM since 1949. His term was notable for his appointment of his “old mate”, High Court judge John Kerr, as Governor-General. Kerr had already demonstrated where his sympathies lay by clapping a prominent union official in jail for industrial action against the bosses. Kerr used this newly-acquired power and imperial boot to kick Whitlam out of office and invite Liberal Malcolm Fraser to form a government in his place.

The next seven years were marked by Fraser’s austere treatment of workers and his famous explanation that “life wasn’t meant to be easy”. These polices eventually resulted in economic turmoil as increasing unrest and industrial action by the unions, let by ACTU President Bob Hawke, threatened to create chaos for the business section. Drastic action was needed to somehow curb wages and yet pacify the workers during those times of rampant inflation. Only a Labor government with control over the unions could possibly achieve this.

ACTU President Hawke, a Rhodes Scholar and son of a religious minister, suddenly became an elected Labour MP while the media, on behalf of the business world, clamoured for a Labour victory at the next election.

Bill Hayden, Labor leader at this time, was all set to become PM. Unfortunately for him this was the era of charismatic leaders with stimulating TV media appeal. Bill Hayden had a sterile character compared to Hawke, so the latter was soon rapidly elevated and replaced Hayden as Labor leader with just five weeks to go to election day. This move clinched the election TV media battle against the positively morose Malcolm Fraser. The Hawke Labor government came to power 5 March 1983. Thus commenced the Hawke and Treasurer Keating Labor saga.

Bill Hayden was clearly bitter at having to resign in favour of Hawke. He had been a leading proponent breaking all ties with the UK and declaring Australia a republic. As a reward for his “sacrifice”, apart from his fat redundancy package, Hayden also accepted the appointment of Governor-General . . . the Queen’s Representative. To this day he still ponces around in top hat, tails and sashes, with a huge tax-free salary.

The 1980s saw Labor governments almost monopolise Australia. At one period all State governments, except Queensland and Tasmania, were Labor controlled.

The new PM Hawkc quickly organisd a meeting of capitalist employers and unions to thrash out an arrangement known as “The Accord”. His recent connections in the ACTU ensured that the unions were little more than a branch of die Labor Party. Frantic for Labor success, docile union representatives agreed to everything the Hawke government suggested. The result of “Accord” was a wage freeze and a trail of broken election promises. There was an about-face on the Timor occupation by Indonesia, uranium mining, wages and taxation. Later, promises on shorter hours, better conditions, the bomb, housing, big business tax evasion and reducing poverty were also postponed. “Indefinitely”. Had the Fraser Liberal government initiated such moves industrial actions would have brought the country' to a standstill. Union officials now spent most of their time hob-nobbing with bosses and politicians and pacifying rank-and-file complaints.

PM I Hawke explained his broken promises: "Circumstances have changed. It would be the height of irresponsibility for the government to fail to adapt to changed circumstances."

By November 1984 more workers were below the poverty line than in the previous two years, and pensions fell even further below the increasing cost of living. During one of his “publicity strolls” Bob Hawke was approached by a pensioner who attempted to discuss how Labor’s policies were hurting him. He was rebuffed in front of the TV cameras by the PM who, pushing him aside, said “You silly old bugger.”

The Federal Treasurer, Paul Keating, proudly told die House of Representatives that profits, as a proportion of national income, were at their highest since 1973.

The mid-1980s produced a balance-of-payments problem. Treasurer Keating explained that the strong economy meant money was being spent on imports which far outweighed exports. His “Labor” remedy was to copy exactly Conservative Thatcher in the UK, make money too expensive to borrow to spend on imports. Interest rates rose to record levels and mortgage-payers were punished to the point of destitution, while the Hawke government imported two airliners at $300 million each for Qantas and spent vast amounts on imported fighter aircraft to upgrade the RAAF. The West Australian newspaper reported:

"Mortgages plunge young families into poverty. In two years Apr. 84 to Apr. 86 interest rales increased from 11.5 to 15.5% Average earnings during the same period increased by 12.8% before tax, consumer prices rose 15%.

Marriage break-ups and unemployment mean 81,000 children in W.A. are in families receiving some form of Govt assistance. Financial help in Australia is less than in other Western countries. The long term looks bleak. ”

With rising unemployment, the same newspaper later informed readers:

"Indexation rises in pensions for aged and invalids, dole for people over 21 and benefits for parents are planned to be curbed, saving the government S150 million p.a. and another $25 million if extended to war veterans pensions. ”

September 11 1986 and PM Hawke breaks yet another election promise. Australia will now sell uranium to France; “They can be trusted to use it only for peaceful purposes,” he said.

French nuclear testing at Mururoa in the Pacific had damaged the volcanic base of the atoll. Future French tests were now planned to take place on the Kerguelen Islands. Prevailing winds and sea currents would carry any radio-active leaks straight to Western Australia. Three leaks from other French nuclear plants were reported within the following year.

With most rank-and-file unions still being subservient and acting as a wing of the Labor Party, “restructuring” and “productivity agreements” were foisted upon workers. An exception was the Air Pilots Federation. A salary dispute led to strike action by airline pilots. The Hawke Labor government quickly intervened. RAAF pilots were used and $100 million of revenue was spent attracting foreign pilots while all the striking pilots were sacked and their Federation destroyed.

Worse off

The second half of the 1980s became “payoff time” for many Labor politicians. During these years many of them resigned from politics and took advantage of generous pay-outs and lucrative job offers from the contacts they had made during their tenure. Examples include Susan Ryan, after 12 years’ service, resigned with 60 percent of her salary for life plus a top job with Penguin Books. Mick Young was another, after many indiscreet “stuff-ups” he resigned after evading smuggling charges. On top of his ministerial lump-sum pay-out he was fixed up as a part-time consultant to Qantas with a salary of $150,000 p.a.

There were the years that the Hawke government interest in privatisation came to the fore, yet again following the path already taken by the UK Conservative “Iron Lady”. Clyde Cameron, former minister in the Whitlam government, accused Hawke of going back on all his principles from his ACTU days. Cameron called for Hawke’s expulsion from the Labor Party.

Foreign Minister Gareth Evans, in Indonesia for trade talks, was seen on TV sipping wine with his hosts while in Timor civilians were being massacred by occupying Indonesian troops.

Labor Senator Graeme Richardson, on a visit to the USA was heard on the radio delivering a speech to American capitalists. He proudly stated that the Hawke government had managed to reduce real wages by 16 percent and he invited American investment in Australia “to take advantage of the cheap labour that we have created. "

The West Australian, 25 February' 1987 reported:

“Young Australian couples are worse off than their parents were. Easy credit and women bringing in a second income have concealed the extent to which living standards have fallen. Even adjusting for inflation, a man must work harder and longer than his father did to house, feed, clothe and educate his children and pay for the necessities of family life.

A woman whose husband is in a job comparable with that of her father, and who wishes to be a full-time home-maker and mother, is likely to face financial destitution. For the past too decades married women have been under increasing financial and social pressure to return to full-time work.

Today’s young couple is likely to be a two-income family, not just until the first child, but for the greater part of their married life. The chances of their marriage failing is at least three times greater than their parents. The labour of two people today earns far less than twice what was acquired through the paid labour of one man a generation ago. ”

The recession hit the stock market. Fortunes were lost as the value of shares and property plummeted. Small investors lost most, or all, of their money while many of the individual “high-flying” corporate tycoons, suddenly now having debts more than the value of their total assets, declared themselves bankrupt, but still mysteriously managed to live in personal luxury.

Federal and State Labor governments now stated they could no longer afford to protect the environment. All charities stated poverty was increasing. Aboriginal poverty remained, as always, a growth industry managed by a multitude of government bureaucrats and civil servants. The Dept of Social Security now expanded rapidly to manage the poverty of the growing number of unemployed.

The 1980s ended with judges and politicians awarding themselves a 20 percent salary increase.

The Spring of 1990 saw the 75th anniversary of the Gallipoli landings in Turkey. PM Hawke and other Australian dignitaries journeyed to Anzac Cove where so many young Australians and New Zealanders had uselessly lost their lives in 1915. In an emotional speech, complete with choking voice and tears. Bob Hawke pledged that, “Never again will young Australians be sent to fight and die in wars abroad.” Within a year the Gulf crisis erupted and the Hawke government was the first to support American military' action by sending three warships to fight . . . before the UN had decided what action should be taken.

Back-slapping buddies

The year 1991 at Federal level witnessed the demise of that great I.abor “team” of bosom back-slapping buddies, Bob Hawke and Paul Keating. The facade of mutual admiration gave way as personal egos and ambition revealed their true relationship . . .  complete with knives protruding from their backs.

Paul Keating made his first challenge for leadership in June, which resulted in failure. He stepped down as Treasurer and was forced to take his exceptional talents to the backbench were he concentrated on accumulating the numbers to support another overthrow attempt and await his opportunity.

The fall of the Labor State government in Western Australia created tremors in the Federal I.abor government. Something was needed to avert the defeat they, themselves, were heading for. A change of leadership was worth a gamble so in December Hawke received a Xmas present by being ousted and replaced by his bitter rival, Paul Keating.

A resentful Bob Hawke resigned and retreated to his millionaire’s mansion overlooking Sydney Harbour and proceeded to write a book of memoirs and criticism of all his colleagues.

While these political somersaults were being enacted, privatisation and restructuring were biting the workforce. Many jobs in the railways and other government departments were made redundant and private contracts were tendered. Cuts in funding for schools, hospitals and roads were made. The Royal Flying Doctor had to appeal to charities for a new aircraft. The Federal Labor government spent $5 billion on six new submarines and vast sums re-equipping the RAAF.

G. Ogglesworth