AUSTRALIAN – FINANCE.

Press, Volume LV, Issue 16429, 24 January 1919, Page 7

AUSTRALIAN - FINANCE.

A SERIOUS OUTLOOK. WAR DEBT FUND PROPOSED. (By Cable.—Press Association.—Copyright.) (Received January 23rd, 10.20 p.m.) MELBOURNE, January 23. At the conference of Federal and State Ministers, Mr Watt dealt with the financial position. He said the outlook in the Commonwealth was serious. He foreshadowed a reduced revenue from taxation, while the expenses of the Australian army had kept up, and repatriation would cost scores of millions. In view of these factors the Commonwealth proposed to diminish the present payment of 25s per head of surplus revenue to the States progressively by 2s 6d yearly till it was 10s per head in 1926. He added that sooner or later the States would have to do without any Commonwealth help. The reduction would not start till tho financial year 192021.

Dealing with the increase in the Commonwealth expenditure, Mr Watt said there had been an increase of over two millions yearly in old age pensions. In the early stages of the scheme, many pensions were refused, but now over 99 per cent, of those entitled to them accepted them. He indicated that tho maternity bonus would in future be confined to those really needing it. On the question of co-ordinating borrowing, Mr outlined a scheme for the creation of an Empire War Debt Commission to' take over the wardebts of the United Kingdom, the Dominions, and otlnjr parts of the Empire, each ' Government having representatives on the all debts at December 31st ( next \to be taken over, and all sinking funds and resumption funds then existing to be vested in the funds of the Commission. He stated that the Federal Government was making the necessary representations to the various Governments interested and recommehding the adoption of the proposal. He indicated a possibility, of including thA various State debts as part of the scheme.