The general provisions of this Act as they affect factories include greater stringency in the sanitary requirements, in the limitation of the hours of labour of women and boys, and in the precautions against accidents. Laundries and dye-works are constituted factories, and the powers of inspectors are in several respects strengthened.
The sections dealing with shops also deserve a word of notice. The necessity for further legislation was based by the Chief Secretary on the ground that under the existing law Municipal Councils were not bound to give effect to petitions received from a majority of shopkeepers, and could only bind their own districts. Besides, the penalties imposed for contravention of any law or bye-law had, in many cases, been so small that shopkeepers had been able to ignore it with practical impunity. He therefore proposed that petitions should in future be addressed either to the Governor or to the local authorities, that a metropolitan district should be constituted so as to render possible uniformity in the hours of closing shops, and that the penalties should be on a fixed scale. These proposals were embodied in the Act, as were others which provided that assistants in shops should have a weekly half-holiday, and that women and boys should not be employed for more than a fixed number of hours in a week or day, nor for more than five hours without an interval for meals, and should have the use of adequate sitting accommodation. These provisions, however, were not to apply to the categories of shops excluded from the operation of previous Acts unless extended to them under regulations made by the Governor in Council. Soon after the passage of the Act a strong feeling arose among the shopkeepers of Melbourne and its suburbs that, as assistants had to receive a weekly half-holiday, shops should be closed upon one afternoon in the week; but opinions differed as to whether the day should be Saturday or Wednesday. The shopkeepers in the city were disposed to favour the former, those in the suburbs were divided in their views.
The Act should be regarded as a humane attempt to minimise the sufferings of the outworkers and to improve the conditions of labour of the toiling masses of the population. The appointment of the special Boards is regarded with sympathy even by those who doubt the possibility of enforcing a minimum wage in the case of persons whose competition is intensified by the fear of starvation. Two general considerations suggest themselves: that a vast discretionary power is vested in the Executive, and that the inspectors will be confronted with a task of hopeless magnitude. On the first point it is to be noted that the Governor in Council, acting naturally upon the advice of the Chief Secretary, may not only exercise the powers already mentioned, but may extend the provisions of the Act or any of them to any shire or part of a shire, and make regulations upon a large number of subjects connected with the efficient administration of all the Factories, and Shop Acts. As regards the inspectors, who are eleven in number, it is to be feared that, though they may invite the co-operation of the police, they will be unable adequately to supervise factories, watch the labour of the single Chinaman, protect the home-worker from the tyranny of the contractor, and assure to assistants in shops the conditions to which they are legally entitled. They will undoubtedly be fettered by the unwillingness of the workers to supply information which may lead to the loss of their employment.
The correlative of protection, which principally benefits the manufacturer, is the direct encouragement of the enterprise of the producer. In this respect successive Governments have displayed an eagerness which has not always been confined within the limits of prudence. The borrowed capital sunk in the construction and equipment of the Victorian Railways is about £36,730,000, which returned in the year 1895-6 a net profit on working of £855,000, being a deficit of £584,000 upon £1,439,000, the annual charge for interest upon the loans; but a large proportion of this deficiency was due to the failure of the wheat crop and the consequent decrease in the amount of goods carried along the lines. Recent returns show that several lines not only do not pay any interest on the capital expenditure, but do not earn even as much as is disbursed in working expenses. The report of the Railway Inquiry Board shows that the Assembly was actually disposed at one time to sanction the expenditure of a further sum of £41,000,000 upon the construction of new lines; but the Age newspaper published a series of articles which showed clearly that national insolvency would follow the approval of expenditure on such a gigantic scale. The exposure attained its object, but involved the proprietor, Mr. David Syme, in actions for libel, brought by the Railway Commissioners, which extended, with intervals, over a period of four years. Finally, he was proved to have been entirely justified in his language, but was saddled with an enormous bill of costs as the reward of his patriotic efforts on behalf of the community. The danger that similar proposals might be carried in the future was lessened in 1890, when the Standing Committee was appointed as a check upon the extravagant tendencies and culpable pliability of individual members.
Again, in connection with water supply and irrigation, the expenditure has been on an extravagant scale. The Melbourne Waterworks are justified by the requirements of the metropolis, but those of Geelong and of Bendigo and adjacent areas commenced in 1865, and constructed at a capital cost of £1,427,000, show an annual deficit of £35,000; and other national works which cost £830,000 are dependent for a return upon irrigation trusts, most of which are unable to meet their own liabilities. Apart from this direct expenditure, the State has advanced £2,438,000 to local bodies, urban and rural waterworks trusts and irrigation trusts. Adding together these different amounts, we find the total direct and indirect expenditure of the State to have been £4,695,000, and we learn from the report of a recent Royal Commission that the annual revenue is about £68,000, or less than 1-½ per cent. upon the capital. As the money bears an average interest of 4 per cent., the loss to the consolidated revenue is at the rate of £120,000 a year. The expenditure was based upon the principle that the national credit should be pledged in order that farmers and land and property owners might be assisted to provide works of water supply which would accelerate the permanent settlement of many parts of the Province. Loans had been granted to municipalities before 1881, but in that year the question was treated comprehensively by the Water Conservation Act, which authorised the constitution of trusts for the construction of works of water supply for domestic purposes and the use of stock. In 1883 the Act was amended so as to include trusts formed for the promotion of works of irrigation. The Urban Trusts and local bodies generally have met their obligations satisfactorily, with the exception of some of the latter, which, instead of striking higher rates or increasing the charge for the water, appear to have hoped that the State would step in and relieve them of their liabilities. The Rural and Irrigation Trusts also have attempted to throw the duty of paying interest on the cost of the works upon the taxpayers of the whole province. In the latter case the Public Works Department cannot be absolved from blame. It is clear from the report of the Commission that money was advanced to Irrigation Trusts without an adequate preliminary investigation of the amount of water available or of the number of settlers who would make use of it. "The public mind was excited at the time, and the gospel of irrigation was preached from one end of the Colony to the other. The farmers had been suffering from a cycle of dry seasons, the price of produce was high, and the prospect of insuring their crops against the exigencies of climate by means of irrigation appears to have overruled all prudential considerations. Schemes were hastily conceived and as hastily carried out. The question as to whether the cost of the undertaking would be commensurate with the benefits to be derived therefrom, or whether the land could bear the burden that would be placed upon it, was apparently lightly considered, if considered at all." But, according to an official who had been concerned in the matter, the Department, far from readily concurring in or urging on schemes, had done its utmost to restrain the popular enthusiasm. Continued pressure had been exercised by deputations, generally supported by the Member for the district, which tried to induce Ministers to set aside formalities in view of the great necessity for water and of the great benefit that would ensue. The lavishness of the Department, whatever may have been its cause, was equalled by that of the Trusts, which in most cases expended the loan money as expeditiously as possible without regard to the requirements of the district or the supervision of the undertakings; they did not realise that they would ever be called upon to provide for meeting the interest on the moneys advanced to them. There can be no doubt that the Government overrated the knowledge and ability of the Trusts, and their recognition of the responsibility involved in the control of large sums of public money. The Royal Commissioners recommended that, after Parliament had decided what concessions should be made, the enforcement of the monetary obligations should be transferred from the Department to the Audit Commissioners, who should be vested with powers enabling them to take action to recover arrears due to the State. They believed that, in the absence of such a change, the Department, being subject to political pressure, might make further concessions, and again allow matters to drift into an unsatisfactory condition.
The next instance of national expenditure in the promotion of enterprise comes under a different category: the State has, since 1878, devoted to the encouragement of the gold-mining industry the sum of £800,000, which was not intended to give a direct return upon the outlay so much as to maintain the pre-eminence of Victoria among the gold-producing Provinces of Australasia. Of this amount £455,000 was expended in boring, the remainder in subsidies to mining companies and prospecting parties. But, as in the case of railways and works of water supply, the Government were confronted by the extreme difficulty of providing safeguards against the misapplication of the funds. Direct control by the Minister of Mines was proved neither to yield good results nor to be satisfactory to the Minister, as he was subjected to continual pressure from Members of Parliament. Prospecting Boards were, accordingly, appointed in the seven mining districts into which the Province is divided, each Board consisting of five members, the surveyor of the district, a member of the Mine-owners' Association, a member of the Miners' Association, a member of the local mining board, and a representative of the municipalities. These men were authorised to allocate all votes, and, according to a statement of the present Minister, as they represented different interests in the mining and different localities, they took a parochial view of their duties and developed "a kind of unconscious log-rolling" which caused the grants, in many cases, to be devoted to entirely unprofitable objects. The expenditure of the £800,000 is believed to have been of the greatest value to several mining companies, but has produced a direct return of only £11,526, an amount which would have been smaller had not the Minister threatened dividend-paying companies with the forfeiture of their leases unless they repaid their loans to the State.
The Government have also attempted to increase the export of such articles as butter, wine, cheese, and frozen meat, for which a large market is believed to be obtainable in Great Britain. Their policy has been to foster these industries by means of bonuses to producers, subsidies to owners of factories, and the free use of cold storage at refrigerating works, and to enforce a certain standard of quality as a necessary condition of their assistance. As the industry progresses the bonus is reduced and finally withdrawn, and charges are made for cold storage which are sufficient to reimburse the State for its outlay. Such a course has already been pursued in the most successful case, that of butter, in which the value of the amount annually exported has risen from £51,000 in 1889-90 to £876,000 in 1895-6. In this manner the State is not permanently engaged, but initiates its expenditure at the highest point and gradually releases itself from the obligation.
In 1893 the Government were confronted with a large amount of misery among the working classes, much of it undeserved, which had resulted from the collapse of many land companies and banking and building associations. An artificial prosperity, caused by the inflation of metropolitan values, had created a demand for the services of a disproportionate number of artisans, who, upon the inevitable reaction, were thrown suddenly out of employment. Under these circumstances the Ministry were called upon to do something to relieve the distress, and passed a new Land Act which offered favourable terms, in the way of tenure and monetary advances, to those who were willing to settle upon the land. They were enabled to take it up either individually or in associations of not less than six persons who desired to live near each other. At the expiration of a year after the passage of the Act 4,080 applications had been received, of which 2,122 had been approved, 993 rejected, and 965 were under consideration; and, in order that the benefit might be immediate, the land had been made available as speedily as possible and applicants had not been compelled to wait until blocks had been surveyed. In view of the conditions under which the settlements were formed it is not surprising to learn from subsequent official reports that the favourable anticipations have, in numerous instances, not been realised, owing to the unsuitability of the soil, the inexperience or physical incapacity of the settlers, or the absence of a local demand for labour or of a market for the surplus produce. Many of the associations have been disbanded as the members were unable to work together harmoniously; and those that are still in existence have, in almost every case, abandoned the co-operative principle and are working their blocks on individual lines. In 1896 the number of resident settlers was 2,127, who, with their wives and families, formed a total population of 8,802; they had received, during the three years, advances from the Government to the amount of £57,000.
The Act of 1893 also provided for the establishment of Labour Colonies. The movement in this direction originated with a few people at Melbourne, who saw the futility of periodical doles to the destitute, which were of merely temporary assistance to them and did not place them in the way of earning a permanent livelihood. It was also felt that, in the absence of any system similar to the English poor-law, which, whatever its evils, relieves the conscience of the community, ministers were subject to continual pressure, which compelled them to institute public works for the sole benefit of the unemployed. In 1892 the distress was met, as far as the public were concerned, by the subscription of a large sum of money, which was distributed through the agency of the local branch of the Charity Organisation Society; but, in the following year, the distress being still more acute, the idea of a Labour Colony rapidly gained ground and was met by the Government by the grant of an area of 800 acres at Leongatha, some 80 miles from Melbourne, which enabled the promoters of the scheme at once to commence their operations. At the outset it had been intended that the funds should be obtained, partly by private subscription, partly by pro-rata contributions from the national exchequer; but, in the absence of popular response, the Government deemed it advisable, at the commencement of 1894, to take over the entire administration of the colony, and appointed, as Honorary Superintendent, Colonel Goldstein, who had been actively identified with the undertaking. Colonel Goldstein states that the main purpose of the colony, which is based on a German model, is to give temporary work at unattractive wages to the able-bodied unemployed in order that they may be prevented from passing over the narrow line which separates poverty from pauperism. At first the aged and infirm were admitted, but it was found that employment could not be obtained for them and that their presence affected the value of the colony as a means of instruction for a class of men in whom it is necessary to arouse a spirit of responsible independence. They are, moreover, provided for by benevolent asylums and other charitable institutions which receive large subsidies from the Government. Consequently men beyond the age of 55 years are now only received in exceptional cases. All applicants are registered, and, if their alleged destitution is believed to be genuine, are forwarded by rail to the colony, where they receive free board and lodging. The colonists are subjected to strict discipline, work for a week without pay upon probation, and then earn wages which rise to a maximum of 4s. a week; they receive no money while at the colony, but may draw certain necessaries, or, if married, cause their wages to be remitted to their wives. The work is so arranged that the capabilities of the colonists may be used to the best advantage and that they may be fitted as far as possible for agricultural employment, which is obtained for them by means of a Labour Bureau established at the colony. At the expiration of six months, or upon an accumulation in their favour of a credit balance amounting to 30s., colonists must, subject to occasional exemptions, seek employment elsewhere, and may not be re-admitted under a period of six weeks. In this manner the men either obtain outside employment while resident at the colony or leave it possessed of a sum of money which renders them better able to search for it; they have the alternative of applying subsequently for re-admittance. The results obtained during the three years have been of a most satisfactory character; 1,832 men have passed through the colony since its inception, of whom only 124 have been dismissed for faults, and none for insubordination; 573 have had remunerative work found for them, and the remainder have earned sufficient ready money to enable them to set out in search of employment. There have been 566 re-admissions of 307 men who have returned from one to eight times. "The majority of the men," says Colonel Goldstein, "are of the shiftless sort, who cannot do anything for themselves. As Leongatha is 80 miles from Melbourne, we seldom see the genuine loafer there. The men who go are willing enough to work when shown how, but they seem unable to rouse themselves into any sort of vigour, to say nothing of enthusiasm, until they have been there a considerable time.... Numerous instances could be given indicative of the generally helpless nature of the men. There can be no doubt that employers, during the depression, will first reduce their worst men. Of these, many have sufficient energy to shift for themselves; the rest drift to the labour colony. Most of them have suffered severely from privation and poverty, and probably have had their dejected condition further dispirited by semi-starvation.... After a few months' stay it is surprising to see the difference in their appearance, and, what is more to the purpose, their discovery that a new kind of life is opened to them. Bush-work gives them a healthier feeling of self-dependence than they ever enjoyed before, especially so for men who have a trade behind them ready when the chance comes." The total outlay has amounted to £11,276, which has been expended mainly upon farm appointments, implements, and permanent improvements, and is represented by assets of the value of £10,861. The net cost must be regarded as exceedingly small in view of the fact that, as the great majority of the colonists are artisans and quite unused to bush or farm work, their labour is necessarily slow and expensive, and that, as soon as a man begins to be useful, he is selected for some private employer. The Labour Colony has, it is maintained, apart from the benefits conferred upon hundreds of individuals, paralysed the agitation of the unemployed; as long as it is in existence no able-bodied man need starve.