AUSTRALIAN PREMIERS’ CON FERENCE.

Gisborne Times, Volume XXV, Issue 2095, 1 June 1907, Page 2

AUSTRALIAN PREMIERS’ CON FERENCE.

TAKING OVER STATE DEBTS

United Press Association —Copyright BRISBANE, May 31.

The Premiers’ Conference continued its discussion of the Melbourne resolutions. The preamble now reads that the method of payment should bo by a fixed sum of threefourths the net revenue from excise and Customs, which the respective States contribute during the nine years prior to December 31st, 1910. This leaves the Federal Parliament master of the situation. If after 1910 the Federal Customs , and excise exceeds the aggregate amount of the annual fixed sum guaranteed, any such sum in excess shall be distributed on a per capita basis. ■ The Conference further considered the taking over of State debts.' Mr. Carruthers held that the time was not ripe. He declined to regard Sir John Forrest’s speech as a threat. The Commonwealth liad not the power to. take over the debts without the consent of the States. Tho latter had as much power in regard to debts as the Federal Treasury, in fact a great deal more power, because they were in possession. Sir John Forrest was relying on the London market, but the States were not going to London. He believed the period was past when Australia . would have to look to London for -loans. The only justification hand.ing over debts would be to place on the Commonwealth the obligation of finding the interest. Mt. Carruthers, continuing, said the way the Commonwealth was trying to overshadow the States could not lead to good results to either party. He did not intend to put the Commonwealth in a position that it should have greater power, for the power might be used to make the States beg as favors what they were entitled to as rights.. The President agreed * with Mr. Carruthers, and said lie would not consent to give the Commonwealth more powers -without ... ........... i,,, ■l 4 1?d ii o n —clause for West Australia. Although he voted against a motion in liis Parliament to take a referendum on secession, lie was-satisfied if it were brought up again it would be carried by a 90 per cent, majority, .unless special consideration was extended to Westralia. The conference agreed to postpone the debts question till the distribution of the surplus had been determined. '

Received- May-81, 12.34 a.m

BRISBANE, May- 31. Sir John Forrest, addressing the Conference, said he. had read ;the Hansard report of the proceedings. He thought those who read the report carefully might fairly' come to the - conclusion that the attitude -assumed by some of" the . members seemed to show that the Conference was the arbiter of the Commonwealth and that the Commonwealth was asking something that would be injurious to their interests. As a matter of." fact under the Constitution the Commonwealth had all the. power it wanted. -It had powers which it did not desire to • exercise. The Federal Parliament had power to take over all debts at the time of its establishment if it chose. It came as a clap of tlipnder to him when he heard that the States did not. ftont the debts interfered with. It seemed to hiyi that" the taste of' prosjiority had turned their heads.' Otherwise he would never expect to hoar in a deliberative assembly of representative men tliat tlie credit of a State was better than' -the credit of Australia. He. was of opinion that the Federal Parliament would not do anything piecemeal to deal 'with one-lialf of the financial problem. In no sense were his observations intended as a threat. He had fully expected tlie Conference to settle the whole question with regard to the surplus and the State debts. He was disappointed personally' at tlie attitude taken lip. He regretted they could hold out no hope that the Commonwealth would deal with tlie return of surpluses and with tlie State debts. He urged the Conference to niako an effort at finality.

MAIL CONTRACT. Received May 31, 12.29 p.m. BRISBANE, May 31. Sir John- Forrest conveyed to the Premiers’ Conference Mr. Bent’s scheme for subsidising tlie mail syndicate. Tlie proposal was that two or more States should enter into an agreement to guarantee the deben-ture-holders interest to the extent of £125,000 annually. Tlie conference resolved, unanimously, on the motion of Mr. Swinburne, that tlie States should not give -the guarantee asked for, and that the conference

urges the Federal Government to take immediate steps 'to arrange a satisfactory contract.