In light of the numerous distressing reports in the news lately, would you like to hear a more uplifting story?
This tale centers around the press gallery in Canberra.
As the federal budget approaches each year, media speculation about its potential contents becomes rampant.
In 1954, a journalist from Canberra obtained a pre-budget leak that was so thorough that his editors initially met it with skepticism, leading them to minimize its coverage in their publication.
The journalist in question was Hal Myers, who served as the political correspondent for the Sydney Morning Herald at the time. His experiences are chronicled in his book, The Whispering Gallery (1999), which provides an insightful glimpse into the political landscape of Canberra during the dynamic post-war era of the 1950s.
Myers reflects in his book on the annual tradition of pre-budget speculation that has long been a staple in journalism, noting that it was already established seven decades ago. He mentions that one prominent press gallery reporter from a competing newspaper seemed particularly fond of crafting speculative articles about potential budget policies leading up to the budget announcement.
“This activity provided material for weeks of content each year. Given its speculative nature, the accuracy was somewhat irrelevant,” Myers notes. “If anticipated events failed to materialize, it was simply accepted. There was no way to ascertain whether they had ever been considered or if opinions had shifted.”
As the 1954 budget day neared, Ken Schapel’s headline story suggested that the Menzies government would reinstate a 40 percent initial depreciation allowance to stimulate investment in new industrial facilities. Myers pointed out that while such an allowance had previously been introduced by Ben Chifley, it had been eliminated by the Menzies administration during a downturn at the start of the 1950s.
With the economy on the mend, speculation intensified around the possibility of its reinstatement, particularly with Schapel’s newspaper backing the initiative, presumably due to vested interests. “Schapel’s narratives appeared to bolster his employer’s campaign,” Myers writes.
This sets the stage for what unfolded next.
During a gathering in the members’ dining room of Old Parliament House, Myers encountered Treasurer Arthur Fadden, who shared some surprising insights. Fadden cautioned Myers against believing Schapel’s reports on the initial depreciation allowance, stating that it would not be included in the budget.
But Fadden didn’t stop there; he proceeded to divulge the ten key points of the forthcoming budget, effectively outlining its entirety. Myers speculated that Fadden’s irritation with Frank Packer’s lobbying for the depreciation allowance led to this unprecedented disclosure.
“An exclusive budget story is the ultimate scoop in Canberra, given its difficulty to obtain,” Myers explained. “It was rare for a journalist to garner comprehensive details on a budget, let alone directly from the treasurer during a social event.”
Later that day, Myers contacted his editor to share the exciting news. “I’m preparing a budget article today. This is the complete story, sourced from a reliable individual, so you can trust its accuracy,” he assured his editor.
After submitting his article, he felt a sense of accomplishment, believing he had secured one of the most significant scoops in Canberra history.
However, the following morning brought a shock. “The article was published, but it didn’t lead the front page. It wasn’t even the second story,” he recalled, noting he had to search down to the third story, beneath a picture, to find how the Herald had treated his scoop.
Myers expressed feelings of frustration and confusion, unable to comprehend the reasoning behind the editorial decision. The explanation he received was astonishing.
“My budget story was deemed too remarkable,” he wrote. “It was so significant that Lou, my editor, had consulted Angus McLachlan, who then showed it to Rupert Henderson, who was incredulous that the depreciation allowance could have been dismissed.”
While his editors in Sydney struggled to accept his story, the response in Canberra was markedly different. Prime Minister Robert Menzies was outraged, as some details in Myers’s report had not even been discussed in cabinet, making them known to only a select few, including Menzies, Fadden, and the head of Treasury, Roland Wilson.
The next morning, Myers received a call from Fadden, who was staying at the Hotel Canberra and requested a private meeting. They met in a secluded area of the hotel lounge, where Fadden, still in his pajamas and dressing gown, sought to know if Myers had disclosed the source of his information due to Menzies’s ensuing investigation.
“I never reveal my sources. Even my own office doesn’t know where this came from,” Myers assured him.
“Good!” Fadden replied, relieved that Myers had not disclosed anything, assuring him that all would be well.
As budget day approached, the atmosphere was charged with mixed emotions.
