FEDERATION COMMISSION REPORT.

Greymouth Evening Star, Volume XXXI, 4 July 1901, Page 4

FEDERATION COMMISSION REPORT.

[Peb Pkess Association.] Wellington This Day. The Federation Commissioners' report finds that the Federation of New Zealand with Australia would prejudically effect the legislative independence of New Zealand.

In regard to public finance, the revenue of New Zealand, if federated, would be diminished by at least £150,000, New Zealand would not benefit by the conversion of the loans, and her public finances would be seriously prejudiced in event of her federating, while her State Government would be hampered and embarrassed in respect of finance, and in the prosecution of any policy for developing her resources.

In regard to defence, the Commissioners are of the opinion that as a separate colony New Zealand would render Australia all possible assistance in war time, and similar assistance would be given by Australia to New Zealand. The Commissioners think that the Commonwealth and New Zealand should increase the annual subsidy to tho Imperial Government, in respect of the Australasian Squadron, upon' condition that the number and class of warships on the station be increased and improved. No advantage as regards mutual defence would arise from Federation.

As far as postal and telegraphic matters are concerned, Federation would be a distinct loss to this colony. On the subject of colored labor, the Commissioners thought that unless it was permitted in the tropical parts of Queensland ihe sugar industry would suffer severely, if not die out altogether. The Commissioners think that tho stretch of 1200 miles of sea between Australia and New Zealand is a weighty argument against this colony joining the Commonwealth, and if New Zealand federated it must cause inconvenience, and embarrassment must be experienced in the administration of several departments controlled by the Federal Government. Even under Free Trade New Zealand could not look to the States of the Commonwealth for a large permanent market.

Tho Commissioners conclude that, apart from the labor conditions, neither the manufacturers nor the working classes of New Zealand (with few exceptions) ha\»e anything to fear from free trade being established between New Zealand and Australia. The maintenance of the New Zealand code of labor laws would be extremely difficult under Federation, and reduced wages might result. The Commissioners are not hopeful of a reciprocal tariff: being arranged.

In conclusion the Commissioners state that they unanimously arrive at the conclusion that it is not desirable that New Zealand should federate with the Commonwealth.