FEDERAL PLAN

Hokitika Guardian, 19 June 1931, Page 6

FEDERAL PLAN

WAGE AND PENSION CUTS. (Australian Press Association.) SYDNEY, June 18. It is not by any means certain that the Premiers’ Conference plan for the financial rehabilitation of Australia will be adopted. Recent events ' disclose a growing opposition on the part of Labour organisations in the eastern states to the plan, despite an earnest appeal by the Prime Minister, Mr Scullin, to let it go through, and also the danger of a default and of a complete stoppage of credit. It is asserted, privately, that a majority of the delegates to a special meeting of the Federal Labour Executive, which now is sitting at Canberra, are distinctly hostile to any reductions either in salaries or in pensions, and that they intend to urge a double dissolution of the Federal House and Senate on the fiduciary currency issue.

On the other hand, an unofficial statement was made in Canberra today that the Federal Government will, in no circumstances, deviate from its intention to give full effect to the Melbourne Conference plan. A. complete endorsement of the plan has already been given by the Governments of New South Wales, Queensland, South Australia and Tasmania.

]Hr SOULLIN’S MOVE. TO ADOPT THE PLAN. CANBERRA, June 18. / The Prime Minister, Mr J. H. Scullin,' in the Federal House of Representatives to-day, moved the second reading of a Bill to approve of the Premiers'* Conference Financial Agreement, which covers the loan conversion plan. Mr Scullin reviewed the whole history of Australia’s indebtedness.

The Prime Minister said that Australia had had no credit in London since September last, and whatever new expenditure had arisen had been caused by the world conditions. For example, the adverse rate of exchange was costing the country ten million pounds per year. The unemployed in Australia, he said, now numbered three hundred . and sixty thousand. “The cost of the sustenance .and relief for the unemployed is nine millions per year,” he said. While there was no action taken to cope with the drift, this cost would be swollen to thirteen millions sterling per year. The debate lias not concluded. CHEAP PRESS MESSAGES. CONCESSIONS ABOLISHED. SYDNEY, June 18. The Federal Postmaster-General has abolished tne concession rate hitherto allowed to the newspaper proprietors for the despatch of news by telephone on the long distance lines to the country newspapers.

The Postmaster-General has also prohibited the use of dictaphones in conjunction with the telephones for the newspaper offices, which usage has of recent years, made serious inroads into the telegraphic revenue.

GRANT TO S. AUSTRALIA. CANBERRA, June 18. In a report presented to the House of R’epreeentatives, the - Public Ac-, counts Committee recommended that South - Australia had a reasonable, claim for a grant of a million pounds from the Commonwealth for 1931-32, but that no increased financial assistance to Tasmania would be justified at present.