This Bill is divided into five parts, Parts II., III. and IV. being the most important portions. Part II. deals with certain relations between my Department and the new Sea Fisheries Association. Part III. deals with the licensing of auctioneers and salesmen, and Part IV. with the conditions under which fish must be kept for sale in retail shops. The necessity for the Bill, in so far as it affects the Association, is, first of all, to enable me to hand over certain assets which are at present vested in me to the Association in order to enable them to carry out the task committed to them, and, secondly, to strengthen the powers of the Association to enforce the hire purchase contracts which we hope will be entered into by the members. Clause 2 (a) enables me to transfer the boats and gear in the hands of the Department. Clause 2 (b) enables me to transfer the sums outstanding and due to the Department in respect of loans previously made. That does not mean that any borrowers who do not consent to this arrangement will be transferred to the Association against their will. I believe myself that the method of repayment of loans under the new arrangement will be such as will make practically all the fishermen borrowers very anxious to avail of the new conditions.
Possibly, Senators may not know that the present arrangement for the repayment of loans to the Department is by way of half-yearly instalments. In the case of the bigger borrowers, especially when there was a bad slump in the fishing business, it was very difficult to meet these instalments and, of course, many of them have fallen very badly into arrears. Under the new system they will pay the Association out of the catch. In fact, what will happen is this, that the fisherman borrower will hand over his fish to the Association to be sold through the agent of the Association, who will deduct a certain percentage from the cash received for the catch to repay the loan with interest, and for certain other purposes as outlined in the rules. One cannot say definitely, of course, whether all the borrowers will accept this. At any rate I could not say definitely, because the Association would have to be consulted in the matter as to whether or not they will take every borrower. I only wish to point out that no borrower will have his liabilities transferred from the Department unless he is willing. There is just an element of compulsion which may enter into the matter, where outstanding loans are in arrear and where they are being written down, as I propose to do in a Bill which will be introduced early next session, immediately after the Christmas Recess. Certain arrears will be written down very considerably, and a condition of the writing down may be that future payment of any amount left over will be made to the Association. The second purpose, I pointed out, of the Bill in so far as it affected the Association is to strengthen the powers of the Association in dealing with persons who contract with them under hire purchase. Clause 3 should be read in connection with Section 6 of the rules of the Association dealing with the hiring of fishing boats and gear with the option of purchase. I should first of all like to say that the word "hire" does not mean in any sense that a fisherman borrower might go on paying for ever and never become the proprietor of the boat or gear for which he is down as borrower. You will see, under the paragraph lettered (j) on page 14, that after the borrower has paid up the full amount with interest he becomes the absolute owner of the boat and gear himself. That is the method adopted by the directors, and is considered to be the best way of dealing with the point. The present system is that each borrower should find two solvent sureties.
Under the new scheme the borrower will be given the loan for the boat or gear without any other surety than his own and the surety of the catch. I believe this will be loyally worked by the general body of fishermen, but the directors of the Association felt that they wanted fairly strong powers to deal with the few persons there might be who would attempt to defraud the Association, and, as I contemplate, the person who has got a loan from the Association, who contracts with them to hand over his fish and who, instead of doing that, goes into some other port where an agent of the Association may not be and sells there instead of putting his fish into the hands of the Association so that they might sell and deduct the percentage to which they might be entitled under the contract.
I do not think there is any necessity to deal in any great detail with the character of the Association and the rules. I might say that the rules are practically as handed to me by the directors of the Association. I was against any avoidable interference with the rules because I felt that this was their method of dealing with the problem. The objects of the Association are set out at great length in Rule 4. I think they cover any activity necessary for the development of the industry. The organisation contemplated is directed of necessity, for the moment at any rate, by a central committee. There has been in the past no co-operative unit through which you could build from below. We are building from the top downwards. Provision is made under Rule 140 whereby regional committees may be formed and if there is any local desire for them eventually probably you will have an association formed of a great many local branches affiliated to that central body at the top. In the meantime, pending the setting up of these regional committees the Rules from 130 to 137 show how the members of the committee will be elected. It is a fairly cumbersome method and will probably be expensive, but the directors think it is worth while.
In addition, there is provision made for payment of expenses for representatives of the fishermen from different areas when they come to attend a general meeting of the Association. The aim of this provision is to give as far as possible every member a direct interest and influence in the society. It will also probably have the effect of making the committee more inclined to listen to propositions put up from the various branches in the country.
Coming to Part III of the Bill, Clause 5 deals with the licensing of auctioneers and salesmen. Perhaps I should first mention that Clause 4 provides that in any area which may be specified the provisions of this part of the Act as to licensing of auctioneers and salesmen will apply, and that its area will first have to be defined as one to which this part of the Act applies. Clause 5 provides that as a condition of being given a licence as auctioneer or salesman, such person will not be otherwise concerned in the fish trade. I anticipate that one of the primary works of the Association will be trying to provide better markets for fish, and markets in which the fish will be sold by auction, or some other method of negotiation, and the object of this part of the Act is to ensure that in every market of importance this transaction will be carried through by persons, and in such a manner as will avoid even the shadow of suspicion. That is not intended to be any reflection on the way business is carried on at the moment, but if there is to be an extension of markets in different parts of the country, I think it desirable that the business of selling fish in these markets should be regulated in a manner above criticism, so that there may be implicit confidence in the case of persons consigning goods from a distance to a particular market.
This part of the Act will not be put in force probably except at the request of the Association or some other responsible party. Part IV deals with the conditions under which fish is to be sold in retail shops. Fish is a very perishable food, and I think it is a matter not only in the interests of the industry, but also in the interests of the public, that it should be kept and sold in a proper hygienic condition. I think, also, that in fact these provisions will be good for the retail trade itself, because when the public feel that the fish is being kept under proper hygienic conditions, I can quite easily imagine that there will be a greater consumption of fish. Clause 12 requires that there shall be a general state of cleanliness, good water supply, and so on; that a fish slab will be provided and that the fish shall be free from contamination. Clause 13 provides also for the avoidance of contamination and the storage of fish, when not actually exposed for sale. Clause 14 provides for the inspection in order to see that these conditions are carried out. These provisions, under the Act, will become operative immediately. I have no intention of starting off an immediate inquisition in the matter. I shall look for an early improvement, but again I should be rather inclined to wait for representations from the Sea Fisheries' Association or some other responsible authority who would have a very direct interest in the conditions under which the fish were sold. I do not mean that I intend to let this portion of the Act become in any sense of the word a dead letter, but it is not my intention that it should be exercised in any way vexatiously.
The only other clause that would call for any comment is Clause 18 which deals with the expenditure incurred in carrying out the Act. So far as expenditure is concerned I do not expect any additional staff will be required for that. We can deal with any inspection necessary under the Bill with the existing staff.