The Secretary, Department of Commerce, has forwarded the following memorandum to me for advice:

I desire to inform you that at a conference of banana interests held at South Grafton on the 21st January last the subject of interstate marketing of bananas was discussed. The conference was convened by my Minister (Dr Earle Page), and attended by the Ministers of Agriculture, New South Wales and Queensland, as well as representatives of banana growers’ organizations.

The export of bananas from the Commonwealth is practically negligible, hence the whole of the annual production must be marketed in Australia. There are only two producing States concerned, viz. Queensland and New South Wales. The production in Western Australia is infinitesimal, but there is practically no export from Queensland and New South Wales to that State, because of the difficulty in transporting bananas there to arrive in sound condition.

Representatives at the conference stated that the marketing of bananas will not be placed on a proper basis until power is given to insist that all the fruit is properly ripened in suitably equipped ripening rooms in the different States, and also that power is given to eliminate from the market bananas deemed unsuitable for human consumption.

There are at present two organizations associated with the marketing of bananas, viz. the Committee of Direction of Fruit Marketing, Brisbane, which functions under the Queensland Primary Producers’ Organisation and Marketing Act 1926/30, and the New South Wales Banana Growers’ Federation, Murwillumbah, NSW. The Federation is a voluntary body, and up to the present New South Wales banana growers have not taken advantage of the New South Wales Marketing of Primary Products Act 1927/34, by virtue of a statutory Banana Marketing Board.

It was considered that control of ripening rooms is a basic necessity to bring about the desired reforms in marketing, and suggestions were made that the Commonwealth should introduce legislation for the creation of a board to control the marketing of Queensland and New South Wales bananas throughout the Commonwealth, or, failing this, to licence agents in the different States to sell bananas. By this means only licenced agents would be permitted to handle the fruit, and a condition of the licence would be that they installed proper ripening rooms and withdrew from sale fruit unsuitable for human consumption.

When these proposals were being discussed, my Minister expressed the view that the Commonwealth did not have the power to act as requested, but that possibly some action could be taken if all States were prepared to come into line.

The Ministers of Agriculture, New South Wales and Queensland, undertook to confer with a view to securing a legal interpretation regarding the control of ripening rooms by means of licences, and the withdrawal of fruit unsuitable for human consumption, and to refer these matters to the Australian Agricultural Council with a view to securing the co-operation of all States.

Whilst this may clarify the respective powers of the States to control the marketing of bananas, intrastate, the question arises whether the Commonwealth can take action so far as interstate trade is concerned, especially should any particular State be not prepared to co-operate with Queensland and New South Wales in respect of the licensing of ripening rooms and/or agents. In order that the position of the Commonwealth may be clarified before the subject is discussed by the Australian Agricultural Council, I should be glad if you would kindly advise on the following points:

1. Has the Commonwealth power to create a marketing board which could be empowered to fully control the marketing of bananas intrastate and interstate.
2. Could the Commonwealth licence agents in each State to sell bananas under certain conditions regarding proper ripening, etc., and refuse licences to agents unable or unwilling to conform to the conditions of the licence.

If the answers to (1) and (2) are in the negative, it would be appreciated if you would advise whether any other means could be adopted to achieve the objects desired by Queensland and New South Wales banana interests.

The Commonwealth has power to make laws with respect to trade and commerce with other countries and among the States. In pursuance of this power the Dried Fruits Act 1928–1933 and the Dairy Produce Act 1933 have been passed. Similar legislation could be passed to regulate the trade and commerce with other countries and among the States in bananas.

It would, I think, be legally possible to provide, by a system of licensing in respect of interstate trade, for undertakings or security to be given that bananas, the subject of interstate trade would be ripened under prescribed conditions prior to being retailed for consumption. There may, however, be practical difficulties in the administration of this scheme arising from the facts that the ripening process has to be carried out in the State of destination. The Commonwealth would have no control over the bananas once they had ceased to be the subject of interstate trade, although it would probably be within the power of the Commonwealth to enforce any undertaking or security given as a condition of a licence in respect of the interstate transfer of those bananas.

There would, in some cases, be doubt as to the exact point of time at which the goods ceased to be the subject of interstate trade, and became the subject of intrastate trade. This would probably increase the difficulties of administering the proposal.

The answers to the questions asked by you are as follows:

1. No.
2. In the case of bananas the subject of interstate trade, yes. Otherwise, no.

It appears to me that the objects desired by the banana-producing States can best be attained by the enactment of legislation by the States which are importers of bananas from those States if the importing States are prepared to enact such legislation.

[Vol. 28, p. 147]