Plan to repay indigenous veterans

The Hawke government's Defence Minister Gordon Scholes moved to settle accounts with underpaid Aboriginal and Torres Strait Islander veterans

Gordon Scholes

IN July 1983, the Hawke government's Defence Minister Gordon Scholes moved to settle accounts with former Aboriginal and Torres Strait Islander servicemen who were paid less than minimum rates of pay during World War II.

The men had served in special Torres Strait units at "a special scale of pay" on the basis that it "better reflected the Aboriginals' and Islanders' standard of living and that serious repercussions on their welfare might result after the war if full rates were paid".

The illegal pay rates - as little as 10 per cent of the proper rate - had been recommended by an inter-departmental committee in consultation with the Queensland Department of Native Affairs.

Scholes told cabinet it was "a relic of discrimination against the Aboriginal people".

In background papers, Scholes said the special pay scale was endorsed by the Minister for the Army in 1941, but not prescribed in regulations. He said indigenous recruits were informed of the special scale prior to enlistment, but discontent was so high by 1943 that it resulted in a sit-down strike.

A further inter-departmental committee, again in consultation with the Queensland government, recommended continuence of less than full rates of pay, but recommended an increase.

"Notes taken at the meeting indicate that the committee recognised the illegality of special rates," Scholes said.

Members of the Torres Strait units were also not paid the dependants' allowance, for the benefit of wives and children. until July 1943 and then at rates less than those paid to other members.

The advice of the Attorney-General's Department, Scholes told Cabinet, was that the Aborigines and islanders were entitled to the pay and while their claims could be barred under statutes of limitation, but commonwealth policy was to settle.

"I believe there is no real option other than to settle the underpayments," he said.

Scholes recommended the men be backpaid using the retail price index rather than the average weekly earnings indicator to adjust to 1983 dollars.

This would adjust the amount they would receive by a factor of 11, rather than a more generous factor of 26.47. It would cost $7.92 million instead of $19.06m.

Average payments, to ex-servicemen or their beneficiaries, would be $4554 for single men and $12,980 for men also owed dependants' allowances.

The taxation office advised the settlement could be taxed. Scholes advised cabinet to waive tax because the rates of pay were less than the tax threshold.