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Information for APS managers and HR Professionals looking to fill vacant positions in the APS.
The APS is committed to employing people with disability and creating inclusive work environments that reflect the diversity of the Australian community. The paper was prepared in the first instance as the Australian contribution to the Country Profile series, published by the Commonwealth Secretariat in London. The Profile provides an overview of the Australian government and public administration framework. Production of the Australian Profile has been achieved by way of a substantial cooperative effort by the staff of a range of APS agencies, state public services, and the APS Commission. While the Profile is being published in the Commonwealth Secretariat series, I believe that there is benefit in making it more immediately and widely available through the APS Commission's Occasional paper series.
In the final quarter of the twentieth century, Australian governments, Commonwealth (national) and state, underwent extensive restructuring, a process which still continues. Australian government as it has been restructured and remoulded is the subject of this book. It is, moreover, an opportune time to survey contemporary Australian government administration. Restructuring of Australian governments in the late twentieth century has been diverse, extensive and comprehensive. Other factors of considerable significance were social and demographic developments such as increasing female participation in the workforce, adaptations necessary to facilitate integration of people who had come to Australia as part of the post-war migration programmes, comparable endeavours to include the Aboriginal people in the mainstream life of the nation, increasing levels of educational achievement, and progressive ageing of the population. Dramatic advances in the technologies of the office and of modern life brought major change in the internal workings of administration and in the ways it related to the public. Of central significance to the course of change in Australia, but reflecting comparable evolution in many industrial, urbanised nations, has been a major reconceptualisation of the role of government from that which marked the federation in its formative decades, and the middle years of the century, the years of the two world wars and the Great Depression. From the late nineteenth century the governments of the Australian states and, from 1901, that of the new Commonwealth, followed active, interventionist philosophies.
Another key form of intervention was national and state workplace relations systems based on judicially-based, third party conciliation and arbitration. The active, interventionist approach to government’s role in economy and society was also evident in the workings of the public sector itself. The two world wars had a major influence on public administration particularly through the preference given to war veterans in public employment, more generous in the case of those from the First World War, and this, combined with the absence of recruitment programs tailored to attract university graduates to public service, gave the hierarchies which flowed from scientific management philosophies a noticeably regimental character. As the twentieth century advanced, the national public service, shaped by these ideas and circumstances, had to handle not only the early tasks acquired at federation- defence, customs and excise, posts and telegraphs-but new responsibilities as the work of government expanded, in the field of industry itself, development of international markets for Australian commodities and goods, transport (shipping and later civil aviation), welfare payments and services, and even greater activity in the workings of the labour market. From the late 1950s activist, interventionist government, whether in the form of the tariff, centralised industrial relations, a managed exchange rate for the currency or public enterprise came under challenge. These macro-political developments provided not only the context for change in government administration during the last decades of the twentieth century but also constituted the sources of many ideas applied in the overhaul of administration. Deregulation is an example of the impact of a general shift in opinion with extensive implications for the public sector.
The consequence of these shifts in the macro-political climate as applied to government organisations and operations has been emergence of a public administration which, whilst still carrying many of the distinguishing features whose origins are to be found in previous reform programmes, is discernibly different from its past during most of the twentieth century. Integral to these changes has been a greater focus on remuneration in terms of costs to the employer, leaving employees greater scope to structure remuneration in forms convenient to their personal situation-reduced salary in exchange for increased superannuation benefit or reduced hours (or both) is an example.
Clearly defined chief and senior executive cadres are a very visible component of the public service emerging from the twentieth century. Transition to department (agency) based management is partly a consequence of change in the value attaching to the concept of a unified public service (first set out in the Northcote-Trevelyan report of 1853). The veteran era was succeeded by an era dominated by university graduates in which women have steadily if slowly won a place in the middle and senior ranges of the public sector workforce, increasingly moving into chief executive ranks of government authorities and, if only infrequently, departments. The rise of graduates in public administration combined with supplementation, supercession and replacement of the old tools of administration-the typewriter, the telephone, the telex and the postal service-with the photocopier, the facsimile, the personal computer and e-mail, to create the circumstances of modern administration.
Scientific management has given way to business management as the inspiration for new thinking on operations.
A significant part of the new system of public administration has been redrawing the boundaries between management and labour unions.
Changes in the 1990s have generally altered the union role so that it now focuses on identifiable grievances rather than participating in essentially management decisions. These extensive developments and changes in the conduct of administration have been accompanied by comparable change in the key relationships of administration with ministers, parliament and the public.
Parliaments have likewise enhanced their capacities, more in practice for scrutiny of administration than for legislating. In nearly all parliaments committees have become a, if not the, major forum for parliamentary endeavour. One of the earliest reforms to Australian government in the late twentieth century was adoption of administrative review of decisions on the merits combined with a simplification of avenues for judicial review of decisions. In addition to their review and investigatory functions, public inquiries and royal commissions have an important general role in providing pointers to future tasks for government administration in an era where change and development are explicitly recognised as being permanent preoccupations of ministers and senior officials. In Australia, at national level, recent investigations have focussed on a range of issues which will figure prominently on the public agenda during the next decade and beyond. In the post-deregulation era the purpose of continuing government activity in industry is increased competition with consequential enhancements in productivity and efficiency, and the maintenance of integrity in the marketplace. Lawful and orderly conduct of business is the subject of the Cole royal commission into the building and construction industry which reported in March 2003. A major source of government work in the next few years has ensued from the terrorist attacks on the World Trade Centre in New York and the Pentagon in Washington, DC on 11 September 2001 and the bomb in Bali in October 2002. Ensuring that government has adequate means to address its continuing as well as new responsibilities is a complex task, combining attention to staff, finances, equipment, methods and locations of operations. Several Australian governments, including the Commonwealth, together with the New Zealand government, in combination with a number of universities, have recently established the Australia and New Zealand School of Government (ANZSOG) to provide high level graduate education for staff with marked potential for the most senior posts in administration, as well as development programs for those already at very senior levels.
Prior to 1901, the system of government in Australia had evolved progressively, from the time when the country had been proclaimed as a British possession in 1788, to the point where it comprised a collection of six self-governing British colonies, effectively under the control of the United Kingdom. Upon Federation, the Constitution made provision for a national level of government referred to as the Commonwealth, with legislative power exercised through a federal Parliament comprised of a Senate and a House of Representatives.
A range of government functions and services is also delivered at the local or community level.
Source: Australian Bureau of Statistics 2002, Australian demographics statistics, (catalogue no.
The national system of government in Australia draws both from the United Kingdom and the United States, as well as having its own unique characteristics.
It is a parliamentary system, where the majority in the House of Representatives determines the executive arm, and where Ministers are Members of Parliament. It is a bicameral system with an elected upper house, the Senate, which is elected under a proportional representational voting system based upon equal numbers of representatives from each state, plus a smaller number of representatives of the mainland territories.
The House of Representatives consists of members elected in single-member electorates by compulsory voting of all those aged 18 and over, with a unique form of preferential voting system (as distinct from first-past-the-post voting). Broadly speaking, the Commonwealth Parliament (comprising the Senate and the House of Representatives) is able to make laws only in relation to a range of specific subjects listed in the Constitution. Over the years, the power of the Commonwealth has also broadened, through its increasing capacity to raise revenue through taxation (including customs and excise duties) (see further below) as well as growing trade and commerce across state and national boundaries.
Today, the Commonwealth has extensive capacity to influence business and community affairs notwithstanding the apparent limitations in the Constitution in many areas.
Beyond the clearly defined areas, Commonwealth legislation may be enacted under the Constitution's external affairs power, if the Commonwealth government considers it to be necessary to give effect to an international agreement to which it is a signatory. As well as being a federation, Australia is a constitutional monarchy with the Queen as the formal Head of State.
The Governor-General exercises formal executive powers subject to the principles of responsible government and on the advice of Ministers. Commonwealth Ministers must sit in Parliament, as Senators or members of the House of Representatives, and are appointed by the Governor-General on the recommendation of the Prime Minister. The government is constituted of the core departments of state, staffed by the federal public service. Exercise of executive powers occurs in a similar manner in the Australian states, whose Parliaments generally comprise two legislative chambers (commonly titled Legislative, or House of, Assembly and Legislative Council). In practical terms, the principal decision-making bodies at both Commonwealth and state government levels are the respective federal and state Cabinets, comprising senior Ministers of the governments in office at any given time. The Commonwealth government is also empowered by the Constitution to create other federal courts, and to vest judicial power in such courts, and in courts of the states. State constitutions and legislation provide for their own judicial systems, headed by the state Supreme Courts. Subject to a few exceptions, the Constitution does not limit the subjects on which the states may make laws. The Commonwealth Parliament is empowered by the Constitution to make laws for the government of any Australian territory. A large measure of self-government has been conferred on three territories, namely the Australian Capital Territory (location of the federal capital city, Canberra), Australia's largest mainland territory, the Northern Territory, and Norfolk Island.
In June 2002 Australia had around 700 local governing bodies, and some 147 500 local government employees. Funding of local government derives substantially from charges imposed on communities for the delivery of basic services, and revenue (rates) from varying forms of property taxes. The Australian Local Government Association is the federation of local government associations representing each of the Australian states and territories. At both Commonwealth and state levels, large numbers of government organisations have been established outside the core public services to perform a range of functions and provide a variety of services to the community. Typically, organisations of this nature have been public utilities providing transport, electricity and water supply services.

Other public sector organisations include organisations operating outside the public service framework include public non-commercial broadcasting organisations, government-supported education and research institutions, authorities oversighting the marketing of primary production, and licensing and regulatory arrangements for those requiring professional or skilled trades qualifications. Financial considerations have a significant impact on the exercise of government powers and patterns of expenditure at Commonwealth, state and local levels.
As noted later, the effect is that the Commonwealth raises most of the revenue-around 80 percent-however, most spending is done by the states. Various arrangements have been adopted to address this imbalance between the Commonwealth and the states.
The Grants Commission now advises on the allocation of a substantial component of revenues to the states and territories based on this principle. Table 2 below summarises, in an accrual accounting framework, the general government operating statement for all Australian governments in 1998-99. The majority of the funds transferred (around A$24 billion) was allocated without condition on the basis of Grants Commission advice. Also clear from this table is the importance of transfers more generally in Commonwealth expenditure, not only to the states but also to individuals primarily through social security and medical benefits. The arrangements for transferring revenues from the Commonwealth to the states has been a source of continuing debate in the Australian federal system. Note: Sums of individual levels of government may not agree with totals for all Australian governments due to transfers between levels of government, and rounding to the billion.
The Moderate Resolution Imaging Spectroradiometer (MODIS) on NASA’s Aqua satellite detected several fires burning in southeast Queensland on September 26, 2011. Many of Australia’s ecosystems require fire to stimulate growth and regenerate some plant species. Anzac Day march in Flinders Street, Townsville, showing the now-demolished town hall building, 1959.
Bingera, a sugar-industry locality, is midway between Bundaberg and Gin Gin.In 1883 William Gibson, a sugar grower who had started in Hemmant, Brisbane, purchased some land on the north side of the Burnett River.
It describes significant reforms that have influenced public service management since the 1970s, their incorporation into current practices, and developments currently underway. Its broad canvas and authoritative status should make it useful to many organisations and individuals, including international visitors and new entrants to the APS at all levels.
This restructuring has encompassed organisation, public personnel management, public sector workplace relations, remuneration and employment conditions, and management and operational practices. It provides an account of Australian government administration as it stands at the start of the twenty-first century and Australia's second century as a nation and as a federation. The processes of development are unfinished but the late 1990s nevertheless saw major consolidations of the changes under way in the previous two or three decades.
It has also had diverse origins, domestic, demographic, technological and international in character. A particular rationale for this distinctively Antipodean approach was a pursuit of ‘equity’ and ‘fairness’ in the wages system, additional to (and sometimes notwithstanding) economic and business considerations.
Public sector management was heavily influenced by the reform movements of the era, especially elimination of patronage and various corrupt practices (in tendering, for instance), introduction of competitive recruitment, and by scientific management in design of jobs, allocation of work, and organisation of staff. The critique was initially based on economic grounds but revitalised libertarian philosophies increasingly added weight. By the early 1960s the Commonwealth had recognised a role for government in promoting competitiveness when it introduced trade practices legislation, the direct forerunner of the role now played by the Australian Competition and Consumer Commission.
A new circumstance, both facilitating and compelling change, was the revolution in office technology and communications symbolised by decline and demise of the typewriter and increasing use of word processors, the internet and e-mail. It was not only an idea which applied to a whole raft of public policy regimes; it was also a concept which had direct relevance to the internal management and workings of public administration in terms of financial and personnel systems. These former features include the continuing, indeed enhanced and revitalised, centrality of merit as the paramount value in public personnel management. Conventional public services whose practices derived from that of Whitehall in the midnineteenth century developed on the basis of career service, with tenure until retiring age subject to satisfactory conduct.
Historically, Australian public services generally had a common personnel structure from recruitment grades to the top levels.
Management powers are now essentially vested in the department or designated agency (often expressly in the hands of the chief executive officer, even if in fact mostly delegated). It has, in a decade and a half, undergone several changes already (though none of a major character). As already observed, for half a century after the First World War the general culture of administration was heavily affected by war veterans who had special entitlements and preferences in the public services. Particularly during the years of full employment, unions secured a prominent role not only in workplace relations but also personnel management, conspicuously as members of tripartite committees deciding appeals against promotion decisions. Except where the provisions of the Public Service Act are involved, the union role in the public service is now more similar to that in the private sector. Ministers themselves reflect similar demographic changes which have had so marked an impact on the social composition of public services.
Parliamentarians themselves have larger staffs, again with capacity, albeit restricted, for policy analysis and appraisal.
Plenary sessions of the various houses are now essentially important as forums for the party battle, particularly at question time. The traditional royal commissions and public inquiries, if used much less frequently, remain significant instruments for investigations and policy development. A Treasury report on intergenerational change has highlighted implications of an ageing population for the financing of government services, especially on health, aged care and pensions. Recent interventions by the Reserve Bank of Australia and the Australian Competition and Consumer Commission in the workings of the credit card market illustrate government's role in promoting productivity, strengthening competition and protecting the consumer position. Some of the implications of that collapse are already under review in a study of the various prudential and similar bodies within the Treasury portfolio.
The report has proposed a new national authority to oversee the workings of the industry, the purpose again being two-fold-enhanced productivity through effective competition and elimination of corrupt practices, and consumer protection.
Internal security of this type has been a growing function of governments in the last century but the recent attacks have given added new poignancy and significance to an ancient responsibility. In many respects it is a task which must be addressed iteratively and pragmatically by a range of departments and agencies. ANZSOG, which commenced operations in mid-2003, represents a considerable strengthening of the means whereby Australian governments prepare themselves for administration in the twenty-first century. He edited the Canberra bulletin of public administration from 1980 until 2000 and has been a joint editor of several books on government administration.
The Constitution of the new Commonwealth had been drawn up by various contemporaries of colonial parliamentarians during the 1890s.
Local government as such is not recognised specifically in the Constitution and is established under legislation of the individual states.
Elsewhere, the Commonwealth has legislated by agreement with the states, in areas with Australia-wide application, such as broadcasting, navigation, and food standards.
The Queen's representatives in the states are the state Governors with roles similar to those of the Governor-General.
It is the final court of appeal in Australia on federal matters, and matters dealt with by state Supreme courts.
The most important exceptions are that the states are precluded from imposing duties of customs and excise, and they cannot raise defence forces without the consent of the Commonwealth Parliament.
A state law is invalid to the extent of any inconsistency with a valid Commonwealth law on the same subject. The remaining territories, which include the Australian Antarctic Territory, are offshore and sparsely populated. Functions vary, but typically include local public works and services, town planning, licensing and inspection of community and business activities, and the delivery of certain community health and welfare services. Commonwealth and state governments provided additional funding in excess of A$2 billion in 2002. It represents local government interests when dealing with the Commonwealth on national level issues, thus promoting the status of local government whilst maintaining effective working relationships at the local level.
Increasingly, however, these types of organisations have been sold by governments, under arrangements providing for varying levels of private ownership.
Other Commonwealth employers accounted for 10 per cent, and local government, 9.8 per cent. During the Second World War, income tax powers, previously exercised by the states, were transferred to the Commonwealth to provide the necessary expanded revenue base to meet wartime and post-war recovery needs. The Commonwealth Grants Commission, an independent statutory authority, established in 1933 has the principal function of assisting the Commonwealth to determine an allocation of general revenue assistance among the states and territories. The Commonwealth's gross operating expenses, at A$41 billion, are substantially below those of the states (at A$64 billion). The Queensland government declared a fire danger period from September 4, 2011, to January 2, 2012, when fires are allowed by permit only. His sons were partners in the venture, and another Hemmant planter, John Howes and Bros, contributed financial backing.
While the principal focus is on the Commonwealth experience, this has been complemented by contributions from state and territory experience related to particular themes or topics.
It should be a valuable reference document on contemporary public service administration, and a guide to sources of more detailed official information.
It has involved shedding or partial shedding of some major government business enterprises in transport, communications and banking, for instance.
There has been significant change in relationships between government and citizens, including establishment of Ombudsman posts in all jurisdictions.
It is an important story in itself, and important as a study in successful, sustained modernisation of government administration in the light of domestic change in the nation, in the nation's situation in the world, and changes in the technologies of office and daily life.

At the national level these included new financial and audit legislation, a new Public Service Act, and other legislation covering government corporations and companies.
Changes in the economic and financial contexts of government have included especially the phenomena covered by the term ‘globalisation’. It served the dual purposes of providing the finance for many government services as well as being the major policy instrument for fostering manufacturing industry in Australia and, thus, employment.
Another sign of a different role for government was signalled by the successive changes of name of the historical overseer of protection, the Tariff Board, to Industries Assistance Commission, thence Industry Commission, and now the Productivity Commission.
Moves to attune government organisations to the particular circumstances of their operations inevitably challenged standardised, scientific management-style practices implemented through centrally-promulgated regulations. The framework of a career service essentially remains, but tenure has been replaced by contracts and a range of procedures for voluntary and involuntary redundancy where the workforce exceeds what is needed for current and foreseeable requirements. Even at the highest levels distinctions were largely confined to methods of appointment (by the Government), pay (identifiable parliamentary appropriation), certain entitlements (class of travel, for example), and discipline. There is no longer an overarching administrative authority such as, most usually, a public service board, with comprehensive powers over recruitment, establishments, pay and conditions of employment, or discipline including dismissal. Accepted non-institutional mechanisms for handling government-wide matters without materially diminishing agency autonomy have not been established. One is found in the costs entailed in the quest for a unified service, in contrast to the benefits. The veteran impact was felt in various forms from overt persistence of hierarchy to application of a merit principle heavily influenced by seniority considerations. Computer competency is a vital skill in modern government, a qualifier for consideration for recruitment or promotion rather than a yardstick of merit. In the Commonwealth, public service workplace relations themselves come under the national Workplace Relations Act.
Parliaments as institutions have similarly acquired policy capacities, mainly in the form of research services attached to libraries (themselves major resources) and to some limited extent in the secretariats of committees. The business of administration figures only sparingly in plenary proceedings, even in consideration of legislation.
Private organisations, however, are more actively organised to represent views on policy and administration to ministers, parliamentarians and officials.
It is also a reminder of the progressive recognition that human services, so much focussed on children and young people for most of the twentieth century, must now also address the needs of citizens as and after they leave the workforce. This review should shed important light on the performance of prudential responsibility in the deregulated financial system of the past two decades. It was endorsed by the people at referendums and embodied in a Act of the British Parliament in 1900, which authorised Queen Victoria to proclaim the establishment at federation. Each retained its own Parliament, able to exercise legislative powers, except as limited by the new federal Constitution.
One of the Court's principal functions however, is to decide disputes about the meaning of the Constitution. Otherwise, state parliaments may pass laws on a wider range of subjects than the Commonwealth Parliament, on any subject of relevance to the particular state. As a result, a number of matters affecting all Australian citizens, on which the Commonwealth Parliament is able to legislate under the Constitution, are regulated almost entirely by Commonwealth law, for example immigration.
State governments retain control of all major public works, and of policies of wider significance for all communities in areas such as education and health.
Those taxation arrangements have been maintained to the present time, for economic and political reasons. The Bingera Plantation (named after a pastoral station) was established, and a large crushing mill was operational by 1885.
Comparable legislative renewal and innovation may be found in all other Australian government jurisdictions, the six states and two self-governing territories, which constitute the federation.
This reinforced a view, particularly after the floating of the Australian dollar in 1983, that while the Australian economy would be more open, Australian businesses themselves would have greater opportunities on the world scene.
Public enterprise was likewise important, evident at state level in banking, ownership and management of railways, ports and often buses and trams. Several Australian public services including, from 1920, the Commonwealth, established internal structures for handling workplace relations mirroring the national conciliation and arbitration system. The conduct of officials continues to be governed by the principle that neither an individual (nor a private organisation employing such an individual) should gain an advantage, financial or otherwise, from holding, or having held, public office. In Australia, several public services have for practical purposes abandoned the idea of a unified pay structure (even if they seek to retain a form of common grading structure).
The pervasive egalitarianism of this system has given way explicitly to development of a separately defined senior executive cadre, still mostly drawn from the mainstream public sector workforce, with individually negotiated terms of employment. Public service commissioners, where they remain, have a largely professional rather than an employment or management role, and are most visible in training and staff development activities, and articulation and promotion of ethical standards. Likewise, the question of independent public appraisal of efficiency and effectiveness, either of organisations or of government-wide policies and practices, may need shortly to be addressed.
Another, perhaps more compelling factor, is the growth of agencies to a size where they can be reasonably expected to maintain and exercise an autonomous management capability subject to a pre-determined expenditure budget extending two or three years ahead. This has included ownership and maintenance of property (combined with sale and leaseback), computing services, legal services and even performance of many routine aspects of the personnel system.
The private offices of ministers now contain a significant capacity for policy analysis and development and are much more than departmental outposts.
Government administration, by contrast, is the focus of committee work, including in consideration of legislation.
Many agencies independently developed their own procedures for review and handling of complaints.
Whereas in the past they mainly came from business, they now cover most fields of policy from health and welfare to consumer and environmental protection. The length of retirement is now considerably extended, a consequence of longer life expectancy and (often) earlier retirement. The agencies that constitute this portfolio are the Department of Foreign Affairs and Trade, the Australian Trade Commission, the Australian Agency for International Development, the Australian Secret Intelligence Service and the Australian Centre for International Agricultural Research. In that context, it exercises ultimate authority in determining whether an Act of the federal Parliament is within the legislative powers of the Commonwealth. Hence, primarily state laws regulate important areas such as education, health, roads, and criminal law.
As indicated below, however, these staffing proportions are not reflected in the revenue and expenditure patterns for the different sectors.
Relationships between government, business and private, not-for-profit organisations have been significantly recast. National boundaries were no longer seen as the barriers they had once been perceived to be. Under current structures, appraisals may be performed by agencies themselves (which would not be independent), the Public Service Commissioner, the Auditor-General, or an ad hoc inquiry (possibly by a royal commission). In Australia this latter situation was promoted by extensive departmental and organisational amalgamations which characterised machinery of government decision-making at the end of the 1980s and the early 1990s.
More constructively, the veteran influence was evident in the growth of training as an active component of personnel management after the Second World War, reflecting its widespread use in the defence services. It has also included policy work of various kinds as the growing role of consultancy organisations with public sector clienteles demonstrates.
In recent years, there have been several initiatives to broaden citizen opportunity to secure improved service by adoption of citizen's charters.
The makeup of portfolios may change over time as governments review their policy priorities, with agencies moving between portfolios or new agencies being created. Bingera was the biggest mill in the Bundaberg area and its plantation was not subdivided into farms.A substantial community formed around the plantation and mill, described at different times as 'Bingera' and 'Bingera Plantation'.
The latter, in the welfare field, are recovering a major role in provision of services lost as the welfare state, operated as well as financed by government, grew during the twentieth century. Its next foray into business was establishment of a bank which, as well as administering the currency, also provided trading and savings bank services, the former in competition with private banks. The desirability and viability of more systematic or comprehensive approaches remains an open question. Central agency arrangements are, in part, a function of the general configuration of the organisational machinery of government and as the latter has changed, so too has the form and style of central capability. By the late 1950s, mainly because of the veteran influence, Australian public services were seen generally as administratively strong but weak in policy development and review.
Citizen access to administrative proceedings was also under-written by freedom of information laws. Formal procedures for consultation (in preparing the annual budget, for instance) combine with informal consultations throughout the year. For agencies with national networks, there are also locally-focussed consultative arrangements. For secular education, the children attended Kolan South State School.Descendants of the Gibson and Howes families continued their management involvement in the Bingera mill until it was taken over by Bundaberg Sugar Ltd in 1972. In 2002 Bingera absorbed some of the Fairymead mill's allotted cane when Fairymead closed: the mill at Childers had drawn too much cane away from Fairymead and its continued operation was uneconomic.

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