THE ENFORCEMENT ACT.

Press, Volume LXVIII, Issue 20497, 16 March 1932, Page 11

THE ENFORCEMENT ACT.

STATE OBLIGATIONS. TEST IN HIGH COURT FORESHADOWED. (; >'HT.D PftKSS ASSOCIATION— BY ELXCTBIO TEX-EORAPK—COrYBIOHT.) (Received March loth, 7 p.m.) SYDNEY, March 15. It is reported that the State Government intends without delay to in.stitnto a High Court action to tost the legality of the Financial Agreement Enforcement Act, which was recently passed by the Federal House of Representatives and to seek ari injunction restraining the Commonwealth Attoniey-Genoral from putting the Act into effect.

[The main provision of the Financial Agreement Enforcement Act is a provision that the 'Commonwealth may attach certain of the revenues of a defaulting State. In introducing the measure on .February 19th the Prime .Minister, Mr J. A. Lyons, said it involved novel and difficult legal and constitutional questions, but it was essential that by this means or some other every Government in Australia should be compelled to live up to its obligations. He mentioned that up to February 4th the extent of the Lang Government's failure to pay interest due to overseas bondholders was £1,169,735.] '

FEDERAL POWERS CHALLENGED. MR LANG ISSUES WARNING. (Received March 15th, 10.55 p.m.) s SYDNEY, March 15. In the Legislative Assembly the Premier, Mr J. T. Lang, in tho course of a Ministerial statement on the Financial Agreement Enforcement Act, said ho had it on the best. of legal authority that this Act was invalid, and that its invalidity -was well known to the Commonwealth Government. Dramatically he warned the Prime Minister' (Mr «T. A. Lyons) that if the Commonwealth peace officers attempted to usurp tho functions of tho New South Wales Police Force they would find themselves in tho same position as any other body that attempted to usurp the functions of the State Government. lie added that the Commonwealth's invalid Act was designed to oppress and deprive New South Wales of its money, to leave it without a penny piece, and to hold up essential services, and thereby depose the Government. Such a course would undoubtedly lead to conflict, turmoil, and disaster, for which the Commonwealth would be directly responsible. "The Commonwealth Government will not collect one penny from New South Wales, and it can go straight ahead with its Police Force for tho suppression of imaginary drillings and armings in this State," Mr Lang concluded.

LOAN INTEREST DEFAULT. APPEAL FOR PAYMENT. CANBERRA, March 15. A last appeal to Mr J. T. Lang to remit tlie interest in which he has defaulted, standing at £830,000, is made in a letter posted to liim by Mr J. A. Lyons (Prime Minister). Though Parliament meets to-day the proposed resolutions under Section 6 of the Financial Agreement li.n for cement Act, declaring the urgency ot payment, will not be introduced until Wednesday, presumably to allow time for Mr Lang to take advantage ot the final opportunity for voluntary settlement. _ , Mr Lyons has received Mr Lang s telegram beseeching the Commonwealth Government to witliold any aotion until the High Court had decided the legality of the Act. Mr Lyons refused to make any comment.

MR LANG'S REMOVAL. LONDON COMMENT ON PETITION. LONDON, March 14. The "Sun-Herald" service says it is difficult to see bow a petition for the removal of Mr Lang from office can meet with, any response here. .lh« decision obviously rests with his Majesty th© King and bis intimate _ advisers, apart from the British Cabinet, and Sp!n confidential communications between his Majesty and Sir Philip Game <Sta?e Governor). The real issue may liinge'on the precedent, which would be created if Mr Lang were removed..