FEDERAL POLITICS

Hokitika Guardian, 19 February 1932, Page 5

FEDERAL POLITICS

A STRINCENT BILL. TO COMPEL PAYMENT OF f DEETS. (Australian Press Association.)

(Received this day at 10.15 a.m.) CANBERRA, Feb. 19

A bill to compel Mr Lang to comply with the provisions of financial agreement and to honour his obligations to the Commonwealth lias been introduced in the Federal Parliamnt. The bill provides that payment of revenue due to the state must be made by taxpayers through the Commonwealth, instead of the state. Payment. to the Commonwealth lias the effect of a discharge to the taxpayer of his "liability to the Stale, while payment to the State does not discharge that liability. Penalties are imposed for payment by the taxpayer, otherwise than to the Commonwealth, and on a State Minister, offiices or employee, for attempting to secure payment to the State. The Bill contains provision for the enforcement of payment to the Commonwealth of State. Power is conferred for the Commonwealth to retain loan moneys borrowed for a State by decision of the Loan Council. Banks can be required to hand over to the Commonwealth, the moneys they hold or receive on behalf of tile State. Offences against the Bill are punishable. Where summary proceedings are taken, the maximum penalty is £SOO or imprisonment for six months, Where an offence is progocuted on indictment, the maximum penalty is a fine of £SOO or imprisonment for two years or both,

In moving the second reading of the Bill. Mr Lyons said the measure was of a type never contemplated, because it had been blieved that all Governments could lie relied upon to stand up to their obligations. The whole financial structure built up by the financial agreement would be undermined if it became possible for a state to refuse to meet the obligations it had solemnly entered into. At any time, a dishonourable Government could bring’ disaster and disgrace upon a state. In the interests of the whole people of Australia it was desirable that this should be obviated.