Australia Revisited

DR. GOLDRING: Today, we are privileged to have as our guest a distinguished Canadian who, when a young man, left his native Scotland to seek fame and fortune in the Canadian West. I have no information as to whether or not he has acquired a fortune but I do know that he has attained fame, particularly in connection with his work at the University of Alberta.

He is a graduate of the East of Scotland College of Agriculture, and also has two degrees from the University of Manitoba. He served as lecturer, professor, and Dean of Business Affairs at the University of Alberta during the period 1935 to 1950, when he was appointed President. He has filled that position with distinction.

He has had other experiences, too. As a young man he farmed for two years in Manitoba. He has served on three Royal Commissions, namely, the Royal Commission on Provincial-Municipal Relations, Province of Alberta, 1947-48; the Royal Commission on Natural Gas, Province of Alberta, 1948-49; and he is now a member of the Royal Commission on Canada's Economic Prospects, which has sat in various centres throughout Canada during the last few months.

During 1955, President Stewart visited Australia. It was not his first trip to that country and today he is going to tell us about that important member of the British Commonwealth. During the present season we have not heard an address dealing with Australia. It is a pleasure to introduce President Andrew Stewart of the University of Alberta, who will speak to us on the subject "Australia Revisited."

DR. STEWART: In 1924 1 came to Canada from my home in Scotland. After a summer in Manitoba, and a portion of the winter on Vancouver Island, I proceeded to Australia and remained for ten months. Last summer I had an opportunity to return there, for a visit extending over one month. Hence the title I have given to this talk "Australia Revisited." However, it is not my intention to attempt to describe the changes which may have occurred during the 30 years from 1925 to 1955. On my earlier visit I saw Australia through the eyes of a young wandering Scot, uncertain of his home or vocation. After 25 years in North America my viewpoint was that of a rapidly ageing Canadian University President. Although during the intervening years I have retained an interest in the Commonwealth, the comparison, I am afraid, would have little significance.

There are some things about Australia which we all know. We know that it is an ancient continent, with a land mass of about 3,000,000 square miles, or roughly the same area as the United States; and that although its coastal plains are productive, and its pastoral lands extensive, much of the Continent is arid. We have seen pictures of the Australian landscape, with the characteristic eucalyptus gum trees; and we are familiar with the blossom of Australia's national tree-the wattle. We know about the primitive fauna - the marsupials (kangaroo, wallaby, possum and platypus); the ancient types of birds (emu, cassowary, lyre-bird, and kookaburra); the dingo dogs and koala bears. We have heard of the concentration of population in large urban centres; that more than onehalf of the inhabitants live in the capital cities; and that the combined population of Sydney and Melbourne account for more than one-third of the total. We are curious about the Australoid aborigines, the surviving stone-age men, who continue their nomadic existence in the interior of the Continent. We have heard many times that the original white settlers who landed at Botany Bay in 1788, were convicts and that for many years the country persisted as a penal colony. (We are perhaps less familiar with the fact that the new land in the South Seas was selected for this purpose, because of the loss of the American colonies). We know that the people of Australia are, today, predominantly of British origin, over 90% having been born in Australia and over 7% in the British Isles; and we are informed about the so-called "white Australia" policy. Our newspapers let us know that the Australians are an out-door sports-minded people, concerned with and excelling in, cricket, tennis, golf, horse-racing, and acquatic sports. Some of us met Australian troops during World Wars I and II; others entertained young Australian airmen who came to Canada under the Commonwealth Air Training Plan; and through these contacts we think we know something of the Australian mind. We know that Australia has had a Labour Government; that some of the state railroads have different gauges; and that the principal export is wool.

These things are of common knowledge even among Canadians less well-informed than you are. I need not dwell on them.

The opportunity to visit Australia last August came to me as one of two representatives of the National Conference of Canadian Universities to the meeting of the Executive Committee of the Association of Universities of the British Commonwealth, held in Melbourne. Through the courtesy of the Australian vice-chancellor's Committee, we were privileged to spend a day or two at each of the 10 Australian universities. This made it possible to learn something of the educational system, and to contrast it with our own. I should wish first, then, to say a little about those features of Australian education which impressed me; and which I believe would be of interest to Canadians.

In Australia, education, at the school level, is a responsibility of the State-Goverments rather than of local authorities. I should not wish to condemn this, although my own preference would be for the system we have in Canada, a system which places a significant measure of responsibility on local school boards. The Australian State system provides elementary education, and secondary education in high schools and technical schools; although some high schools are composite or double purpose. State schools are co-educational, but there are many private, and usually denominational schools for boys and for girls. It is possible to qualify for admission to the University through State schools; and apparently an increasing number are proceeding in this way. However, a substantial proportion of university students have received at least their secodary education in private schools. The academic curriculum, in both private and State high schools, is similar to that in the United Kingdom. The universities too are strongly influenced, in organization and programme of studies, by the British tradition. The staff is drawn almost entirely from the United Kingdom, or from graduates from Australian universities who have had an opportunity to do post-graduate studies there. The continuing tendency to parallel the British system, and the close connections maintained with Universities in the United Kingdom have, I think, two consequences. First, the emphasis is strongly on scholarship and academic standards are high. The typically higher standing of Australian Rhodes Scholars than of North American scholars is at least evidence that the Australian system is more closely integrated with the British System than is ours. The second consequence of the closer connection with United Kingdom education is that there appears to be, in Australia, a certain exclusiveness and, in the universities, a measure of aloofness or detachment from the dynamic life of a new and emerging society. The dilemma is one with which we are not wholly unfamiliar. In North America the universities have sought, and I believe have achieved, a higher measure of identity with their community; it may be with some weakness of the academic influence or at least with some prolongation of the time required to reach a given level of academic achievement.

As a Canadian, I was interested to find that, although education is a concern of the States, the Commonwealth government has intruded in two important ways. There is, first of all, the scholarship scheme financed by the Commonwealth Government. Students given assistance under this scheme have their fees paid, and in addition receive a living allowance adjusted to the income of their parents. The living allowance which, at its maximum, is somewhat less than the full cost of support, is greater if the student is living away from home; and the family income to which it is related is "adequate" for the number of dependent children in the house. This is, I think, a well-conceived scheme. By consideration of financial need, it makes the most effective use of the funds available; and it must be supposed that it brings to the universities annually a substantial number of students who would otherwise be excluded from full-time studies.

The second contribution of the Commonwealth Government to university education has been made through the establishment of the National University at Canberra. The National University, wholly financed by the Commonwealth Government is being developed as a graduate and research institution. At present it has four main units: a school of medical research, and research schools in physical studies; social studies and Pacific studies. It is generously supported, excellent facilities are provided, and the standards of achievement will no doubt be high. As a centre of advanced studies, and as a source of well-prepared teachers and research workers, the National University will have a profound influence on the entire system of higher education in the country. However, the creation of the National University is not universally approved. It is competitive with the graduate schools in the State universities. The alternative would have been for the Commonwealth Government to support the graduate schools in the State universities, perhaps with some specialization between the different institutions. This may not have been a practical alternative in Australia; but there are Australians, particularly in the State universities who believe it would have been preferable.

One or two other recent developments in Australian education must, I think, be of some interest to Canadians at this time. Australian universities have, in most cases, quite a high proportion of part-time students who are continuing their education while employed. The new University of New England situated in the small town of Armidale, N.S.W., suggests some tendency to decentralization. There has recently been set up in Sydney a University of Technology. This new university was designed to offer a programme of technological studies not provided for at the University of Sydney. Having embarked on these programmes, it is now strengthening its Faculty of Arts and Sciences, and aims at patterning its development after the Massachusetts and California Institutes of Technology.

In Canada, as we attempt to meet the growing requirements of industry, and of society generally, for educated and skilled men and women, and to provide the facilities needed for the greatly increased number of young people coming forward from the schools we will have to give thought to the possibility of continuing education while in employment, to some decentralization of facilities, and to the place of the technical college in our system of advanced education. Perhaps industry will find it to its advantage to enable employees to advance their formal education and practical experience at the same time. Universities can grow too large; and the smaller local institution, with limited objections, is not necessarily uneconomical if its educational results are properly assessed. The demands of industry for skilled personnel may well require the establishment or expansion of technical colleges. But their purpose is not the same as the purpose of the university and their essential contribution will not be effectively performed if they simply become universities under another name.

Before turning to some aspects of the economic life of Australia, I should like to refer briefly to two other matters of some importance in the life of a nation-the arts and scientific research.

Some time ago, a Royal Commission investigated and reported on the state of the arts in Canada. We have, however, done very little about it. This is unfortunate; because, it is clear that further encouragement of the arts could add colour and interest to our national life, particularly if it reached the great mass of the people. I would not wish to say how deeply the interest in the arts has penetrated the body of the Australian people; but there is evidence that the artist in the theatre, painting, letters, and music, is welcomed and is contributing to the national life. In letters, the Commonwealth Literary Fund gives active encouragement to authors. The Fund provides grants to universities for courses of lectures on Australian literature, guarantees publications of literary merit; and offers fellowships to recognized writers who wish to undertake some specific work. The Australian Music Examinations Board, a national body holding examinations in every state, has helped to raise musical standards. All capital cities have their permanent orchestras which are managed by the Australian Broadcasting Corporation, and receive assistance from the State-Governments and the municipal authorities. Each of the States has its national art gallery, in which both rare works and paintings by contemporary Australian artists are displayed. Melbourne, with a population roughly the same as Toronto, has five theatres providing live performances on a commercial basis, three semi-professional Little Theatres, and numerous amateur groups.

Canada has perhaps less to learn from Australia about scientific research, both pure and applied. However, much useful work is being done by the Commonwealth Scientific and Industrial Research Organization, which is the Australian counterpart of our National Research Council. C.S.I.R.O. is financed mainly by grants from the Commonwealth Government; but it also receives substantial contributions from industry towards specific projects. The Organization supports research at the Universities but carries on extensive and varied programmes through its own facilities, which are widely dispersed throughout the country. Its contribution to agriculture can be illustrated by two recent achievements which have substantially increased the productive capacity of the pasture and arable lands. These are the introduction of myxomatosis for the control of the rabbit pest, and the determination and correction of deficiencies of trace elements in the soils.

I turn now to the economic life of Australia. It will not be possible to do more than to select a few aspects which would seem to be of some particular interest.

In interpreting Australian activities it is necessary to bear in mind that the Australian Constitution differs in important respects from the Canadian Constitution. The States of New South Wales, Victoria, South Australia, Tasmania and Queensland were all granted full rights of self-government between 1855 and 1860. Western Australia was created an autonomous state in 1890. It was not until 1900 that a federal constitution was adopted. The first Commonwealth Parliament met in 1901. The earlier establishment of six sovereignties on the Continent explains the nature of the Commonwealth Constitution, which follows the United States pattern more closely than the Canadian. In Australia the specific powers of the Commonwealth are set out in the Act; all unspecified and residual functions fall within the jurisdiction of the States.

Although the position of the States is relatively strong - it is, for example, strange to find domestic prices controlled by the States-the actual responsibilities of the Commonwealth Government have tended to increase with the expanding needs of national defence, the general acceptance of a full employment policy, and the demand for wider and more uniform social services.

On illustration of effective inter-governmental co-operation is to be seen in the Australian Loan Council. As early as 1927 the public debts of the States were taken over by the Commonwealth, and control of future borrowings was vested in the Australian Loan Council. The Council consists of representatives from each of the States and one from the Commonwealth, the Commonwealth representative having two votes. The objective of the Council is to co-ordinate public borrowings, and to avoid competition in the loan markets at home and abroad. The Council decides that amount which in any year it believes can be borrowed on reasonable terms, and allocates the amount between the several governments. If unanimity is not reached, the legislation provides for allocation by means of an automatic formula. However, it is my understanding that the vote has always been unanimous.

During the war the income tax field was taken over, and since the war has been retained, by the Commonwealth Government. Grants, known as reimbursement grants, are paid to the States. These are based upon a formula which provides for annual adjustments reflecting changes in population and in the level of wages. The reimbursement grants determined by the formula have recently been supplemented by special financial assistance grants from the Commonwealth to the States. In addition to the grants derived from the rental of the income tax field, the Constitution makes provision for special grants based upon fiscal needs; and such grants have been paid to some of the States for a number of years. These "equalization" grants are established upon the recommendation of a Commonwealth Grants Commission.

It was only in 1945 that the Australian Parliament passed legislation for the regulation of banking. The Central Bank - the Commonwealth Bank of Australia - has been established with statutory authority to control the volume of bank credit, to determine the lending policies of the trading banks, and, with the approval o€ the Commonwealth Treasurer, to fix maximum rates of interest for banking transactions. The Commonwealth also operates a Trading Bank offering general banking service, and provides Savings Bank facilities through the Commonwealth Savings Bank of Australia.

Energy provides the key to industrial development. Australia is limited in its range of energy resources. It has ample coal; few natural resources capable of generating hydro-electric energy; and no petroleum. Some uranium deposits have been found and are being developed. Industrial expansion has at times been restricted by shortages of generating capacity. The Commonwealth and States Governments have moved to rectify this condition, and recent developments have considerably improved the situation.

There are ample reserves of anthracite in New South Wales, and of brown coal in Victoria. Because of the anthracite deposits, New South Wales is the centre of the steel industry, iron ore being brought from South Australia. The Government of Victoria has developed the Yallourn brown coal field - a field of some 800 square miles with an estimated reserve of 40 thousand million tons. At present an immense open cut, i.e., a strip-mining operation, is providing some 6 million tons annually. A large part of this output is going into power generation. Water is one of the major deficiencies over large portions of the continent. The most important river is the Murray, which over a large part of its distance (about 1,200 miles) determines the boundary between Victoria and New South Wales. This river, along with its tributaries, drains a watershed of almost one-half million square miles. Interest has long been evidence in the possibility of using the water in the upper reaches of the system to develop hydro power, and by control to irrigate the dry lands of the valleys. In 1949 the Commonwealth Government appointed an Authority (the Snowy Mountains Hydro Electric Authority) to commence an elaborate project, including mountain tunnels, aqueducts, power stations and dams. The first power plant has been completed. If and when the full project is finished, it is expected it will create installed capacity of more than three million kilowatts, and more than 2 million acre feet of water for irrigation. It is, therefore, in concept similar to a combination of the Kemano-Kitimat and the South Saskatchewan Irrigation Project in Canada. It has the capacity to add progressively to the production of hydro-electric energy as may be required, but it does not seem possible that it will provide low-cost power.

Australia must import all its crude oil and petroleum products. This is a serious handicap, particularly in view of the long distance over which oil must he transported to reach the continent. Geologists appear optimistic about the prospects of discovery of crude; but so far only a few wells have been drilled. A small flow of crude was obtained from one well in Western Australia. Some of the oil companies appear to prefer the prospects in New Guinea, and are actively exploring there; but payable quantities have not yet been tapped.

The Commonwealth Government has followed policies designed both to stimulate industrial expansion and at the same time to assist the production and marketing of the country's main primary products. Substantial protection for domestic industry is provided under a system of preferential, intermediate and general tariffs. During and since the war it has been necessary to supplement the tariff with import licensing regulations. By 1950 licences were required only for imports from the dollar area and Japan; but in 1952 they were extended to imports from all sources, with the object of safeguarding currency reserves. Under a full employment policy there has been a continuous pressure on manpower and resources, with inflationary tendencies. The post-war expansion of secondary industries has been substantial, but not, I think, on a scale comparable with the expansion in Canada.

Almost one-half of the country's imports are from the United Kingdom, and the value of British imports exceeds the value of Australian exports to the U.K. The principal imports from this source are machinery, metal products, textiles and chemicals. Australia imports some machinery, automobiles and petroleum from the United States; and automobiles, lumber and paper from Canada. Ninety per cent of her imports are unprocessed or partly processed primary products-wool, wheat, meats, fruit and sugar.

Exports of most foodstuffs are regulated by Export Marketing Boards. The Boards are established under Commonwealth statutes. As I have already mentioned, only the States can regulate domestic prices. Under some of the marketing arrangements, e.g., dairy products, the total supplies are pooled by the Board, but a higher price is charged on the domestic market than can be obtained by export. Such two-piece arrangements require complementary legislation by the Commonwealth and State Goverments.

The relations between employers and employees in the matter of disputes, hours of work, and basic wages are subject to a considerable measure of regulations. Conciliation in disputes is provided by Commonwealth Conciliation Commissions, but if conciliation fails, formal arbitration proceedings ensue before the Commonwealth Arbitration Board, and an award made by the Board is binding on both parties. Compulsory acceptance of arbitration awards has not, however, eliminated work stoppages. The Commonwealth Arbitration Court determines from time to time basic wages for adult male and female employees. The female rate is 75% of the male rate. The basic wages vary from place to place, and are changed from time to time to reflect differences in changes in the cost of living. The basic wage is legally payable, although an employer is not prevented from paying a higher wage. Forty hours per week is standard, although a shorter week has been granted for some occupations.

I have commented briefly on some aspects of the fiscal, production, trade and labour policies and programs of the country. My purpose has been to describe rather than to appraise or to predict. It can be said within the limits of her resources Australia has enjoyed a substantial measure of prosperity, with occasional crises, during recent years.

The dominant impression I carried away from my recent visit was a feeling of isolation, which seems to be shared by the people of Australia themselves. The reasons are to be found in the simple facts of geography, and the equally compelling facts of recent history. Australia is the outpost of Western culture on the fringe of the continent of Asia. The fall of Singapore and the imminence of invasion during the war have not been forgotten. Australia is a British country. As I have indicated, the cultural and commercial ties with the Old Country have been close; and I would expect that they would remain so. However, it seemed clear to me that Australians would wish to cultivate a closer association with North America, and particularly with Canada. It seems that sometimes Canadians are not quite sure whether they are blessed or cursed by sharing a continent with a powerful and wealthy neighbour. I gather that, situated as they are, Australians feel that we are favoured. There is a substantial fund of goodwill towards the United States, but Australians, it seemed to me, feel a particular affinity to, tinged with some envy of, Canada. I would hope that, as the years pass, we may find ways and means by which, through the movement of people, the change of ideas, and of commodities, we may develop closer connections with our cousins in the Antipodes. This, I am sure, would be mutually rewarding.