FEDERAL FINANCE

Hokitika Guardian, 20 February 1932, Page 5

FEDERAL FINANCE

SUPPORT FOR THE BILL

LABOUR AND COUNTRY PARTIES

(Australian Press Association.)

CANBERRA, February 19

The Federal Labour Party as well as the Country Party will give the Gov ernment’s Financial Agreement Enforcement Bill the fullest support. Therefore the immediate passage of the measure is assured.

Any attempt at obstruction will probably be only supported by the lleas.e,, Group of five. The Government, however. realises that this by no means spells a simple ending of the difficulties, legal and constitutional, which must be laced lor the first time since the Federation. The Bill claims the right to the exercise of powers by the Commonwealth that never were previously regarded as coming within the orbit of the Federal Administration.

The Ministerialists welcome the measure chiefly as an indication that the Federal Government is determined to act firmly in order to end the present situation in relation to the Commonwealth and New South Wales.

AN ATTACK ON N.S.W,

MR LATHAM’S REVIEW,

CANBERRA, February 19

In explaining the Financial ‘Agree* meat Enforcement Bill in the House of Representatives, Mr Latham, AttorneyGeneral, reviewed the occasions on which Mr Lang had defaulted. This Bill, he said, aimed at enforcing obligations that were already existing. Ho said: “When the financial agreement between the State Premiers was drafted, this sort of thing on the part of New South Wales was foreseen. Accordingly a very special power wn» conferred upon the Commonwealth. The Government of New South M ales he said, had adopted a deliberate policy or practice of making agreements where a benefit could be obtained, and of breaking them whenever it suited. Mr Latham spoke of the seriousness of default.

Mr Latham was subjected to interruptions. by the Beasley faction.

The debate was adjourned till M ednesday.

OVERSEAS INTEREST BURDEN

FEDERAL GOVERNMENT FORCED

SYDNEY, February 19

The Prime Minister, Mr Lyons, in the House of Representatives, at Canberra, indicated that one of the objects of Mr Bruce’s mission to London will be to seek relief from the oversea interest burden. The Govemmnets of Australia namely, of the Commonwealth and the States, borrowed from the Commonwealth Bank, and through the Common wealth Batik and trading banks in Australia, on short-term securities, the sum of £41,001.000 up to January 28th last. The Governments also owed the Australian hanks in London and the 'Westminster Bank £27.825,000. making a total of £68,826,000. Out of that amount £31,751,000 was advanced between December 31, 1930, and January 28. 1932. The amount New South Wales had obtained from the banks up to December 3lst las’- was £31,004,534.