AUSTRALIAN CUT

Hokitika Guardian, 25 May 1931, Page 4

AUSTRALIAN CUT

N.S.VV. AN OBSTACLE

(Australian Press Association.)

MELBOURNE, May 24. The Federal Loan Coun c il Sub-Com-mittee mi Saturday prepared a drastic report indicating further taxation, also a reduction in the payment on social services, with a review of the deductions at present permitted. The Seuliiti Government currency inflation scheme, was dismissed as providing no remedy for the country’s i position. These conclusions are to be present- 9 ed to the Premiers’ Conference ffl Monday. The attitude of the Labour Premiers of South Australia (Mr Hill) and of Victoria (Mr Hogan) was on Saturday indicated at the Federal Loan Council t<> the Federal Prime Minister, Mr Seullin, who attended. It was that tlie Federal Government could no longer isolate itself and ignore The financial experts’ recommendations. Tile sitting, which lasted all day, ended without result, and the Loan Council adjourned till after t'he Premiers’ Conference. Saturday’s discussion, however, is said to have been overshadowed by A, the effect's of the New South Wale 9 default and by Mr Lang’s refusal to face the needed financial restoration.

The Treasurers of the otrrer five States are convinced that the general position cannot be redeemed unless New South Wales is brought into line.