CHECKING MR LANG.

Press, Volume LXVIII, Issue 20488, 5 March 1932, Page 15

CHECKING MR LANG.

A FEDERAL MEASURE. VIOLENT CRITICISM OF GOVERNMENT. (Received March 4th, 8 p.m.) CANBERRA, March 4.. The House of Representatives passed the Financial Agreement Enforcement Bill. Members of the Beasley Labour Group used fiery language, Mr R. James declaring that the Government would need machine-guns beforo it was finished with New South Wales. Mr J. A. Beasley said: You are burglars and embezzlers., Ned Kelly had nothing on the Lyons Government. Mr Stanley Bruce, Assistant Minister for Finance, interjected: Your little Party should be good judges of the methods of such nefarious persons.

The Financial Agreement Enforcement Bill represents the most drastic measure vet-taken by the new Federal Government to compel the Premier of New South Wales (Mr J. T. Lang) to honour his State's obligations. It provides for the carrying out of the Financial Agreement Validation Act, of 1929, to which the Commonwealth and all the States are parties. The main feature of the Enforcement Bill is a provision that the Commonwealth may attach certain of the revenues of a defaulting State, and use them to liquidate the debts of that State. It is further provided that the taxpayers in the State singled out by proclamation for the operation of the Act shall pay their taxation to the Commonwealth, and that payments to the State of such money shall be invalid. Drastic penalties are provided for persons who attempt to evade the law. Members of State Ministries are specifically mentioned in the penalty clauses, under which a fine of £IOO, in default imprisonment for six months, may be imposed summarily, and a fine of £SOO, in default imprisonment for two years, may be imposed upon indictment.

In introducing the Bill on February 19th, the Prime Minister, Mr J. A. Lyons, after explaining the extent of the Lang Government's failure to pay interest due to oversea bondholders, amounting to £1,169,735, up to February 4th, said the measure involved novpl and difficult legal and constitutional questions, but it was essential that by this meani or some other it should be put beyond any possibility of doubt that every Government in Australia must live up to its obligations.

POSTAL REVENUE. SURPLUS FOR LETTERS BRANCH. (Received March 4th, 8 p.m.) CANBERRA, March 4. Tho earnings of the Postal Department for the year were £12,844,000, compared with £13,391,000 for the previous y-~v. The suiplus in the postal section amounted- to £721,282, but the •telephone branch lost £301,685. The Telegraphs Department lost £245,514.